One Of The Biggest Mistakes New Business Owners Can Make (And How To Avoid It)
When it comes to entrepreneurship, everyone has their own journey. Some people have known they want to own a business and be their own boss since they were a little kid, while other people just stumble into it and never leave.
But one thing that most business owners have in common? Their humble beginnings.
It’s incredibly rare that when someone sets out to start a business that they know EXACTLY what to do right away.
Sure, they likely know what they want to sell and how they want to help people, but the actual business side of things?? Not so much.
When you think of launching a business, you probably think about the really fun stuff first – like your social media accounts, your beautiful website, your brand images, your logo and colors.
And I’m with you – all of that stuff IS a super fun part of business.
But the catch 22 is that you truly can’t enjoy all of that fun stuff if it's not legally backed.
Sure, it might not hurt you or cause any problems right away, but the longer that you ignore the real business things that need your attention, the greater risk you’re putting yourself in for the long run.
And by real business things, I mean things like understanding your taxes, making sure your business is registered properly, AND having certain legal agreements in place to protect you (and your clients) in various ways.
NOT implementing legal agreements from the get go is one of the biggest mistakes new business owners can make and I’m here to make sure that’s not you.
So, whether you’re brand new to business, plan to start a business soon, or have been in business for quite some time, but still haven’t implemented proper legal agreements, keep reading. ⬇️
4 Essential Legal Agreements Every New Business Owner Needs
1. Privacy Policy
I’ve said it before and I’ll say it again: if your website is missing a privacy policy you could potentially be fined up to $7,500+ per visitor to your site!!! 🤯
As a business owner, I’m sure the LAST thing you want is to pay even more money to the government… right? I know I don’t!
This is why it’s so important to make sure you know what’s required of your website and make sure that your site is legally squared away from top to bottom.
As a business owner, especially if you’re just getting started, you might not pay too much attention to the legal side of things.
You might file for an LLC, register your business with the state, set up a Quickbooks account, create your website and check things off as done.
You’re finally ready to sell your products or services! But are you… really?! From my perspective, NO! And here’s why…
If you are selling products or services, tracking your website visitors with cookies, using affiliate marketing or even collecting email addresses, a privacy policy is a REQUIREMENT!
And it’s not just to protect the customer or website visitor – it’s also to protect YOU as the business owner.
💡 For a deeper dive into Privacy Policies 101, CLICK HERE!
2. Website Terms of Use
You know how people tell you that you need boundaries in your life and in your business? Well, your website needs ✨ boundaries ✨ too and that’s exactly what your Terms of Use does!
Just like you set the rules for how you work with your clients, you also get to set the rules for how people use your site and your course, more specifically.
In your Terms of Use, you can set age requirements, specify that they can’t take your graphics and photos, copy your blog, or backlink to your site.
YOU get to call the shots and when you have this agreement in place, if anyone crosses those boundaries, you can actually do something about it when necessary.
3. Client Services Agreement
Depending on the type of work that you do, your client services agreement will look different and include various things, but generally speaking, a client services agreement works to help protect your work, define your roles and responsibilities, and ensure a positive relationship with your clients.
So, whether you’re a social media manager, copywriter, web designer, or any other kind of service provider, having a client services agreement in place can be the thing that sets the tone of your working relationship with clients and start on a solid ground with mutual understandings!
💡 Since every niche is unique and different, the TBL Contract Template Shop features various agreement options so you can choose the one that’s best for you.
4. Terms of Purchase
When it comes to selling ANYTHING online, you want to make sure that your clients and customers are fully aware of your expectations as the seller and their responsibilities as the buyer.
Your Terms of Purchase, also commonly referred to as Terms and Conditions, sets the ground rules and expectations for how your customers can use your products while simultaneously providing a safety net for you as the business owner.
This legal agreement outlines the specific terms of a transaction for either physical or digital products and covers policies that are a part of the purchase process, such as refunds, chargebacks or cancellations.
💡 Here’s a closer look at the 5 hardest working clauses in your Terms of Purchase!
The New Business Owner Contract Starter Pack
Overall, implementing the correct legal agreements right from the start can prevent SO much headache and heartache for you as a business owner.
As an entrepreneur, you have plenty to worry about, so do yourself a favor and take something off of your worry list by making sure you have the 4 things mentioned above covered!
With the help of TBL’s Contract Template Shop, it doesn’t have to be complicated or time consuming. In fact, we’ve put together what we consider to be every new business owner’s contract starter pack so you don’t have to guess at what you need.
We call it the New Business Bundle, which included a Professional Services Agreement, Independent Contractor Agreement for Companies, Website Terms of Use, and Privacy Policy
But if you’d rather shop by your industry, click here to browse!
And if you’re in need of other resources to help you out on your new business journey, we’ve got you covered there too:
⭐️ 5 Mistakes New Businesses Make and How To Avoid Them
⭐️ 5 Reasons Why Professional Contracts Matter for Your New Business
⭐️ How To Legally Turn Your Hobby Into a Legit Business
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If we haven’t had the chance to *virtually* meet yet, hey I’m Amber – not a regular lawyer, but a cool lawyer that helps online business owners sell without getting sued.
If you like what you just read and want more cool lawyer things in your life, here’s a few ways to stay connected:
Let’s be pen pals! Subscribe to my email list to receive all of my best biz tips and behind the scenes goodies to keep your business bringing in sales (legally of course).
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And if you’re in need of legal resources that you can ACTUALLY understand? Here’s a few ways I can help:
Step into TBL’s free library of legal resources for creative entrepreneurs where we throw open the doors and spill the tea on what works and what doesn't when it comes to legal protection, systems and sales.
Browse the contract template shop to find what’s missing in your biz and easily implement it with a plug and play template!
Need something else? Send me a DM! Always happy to lend a legal hand when I can.