To run a successful business where you are making the kind of money you want without too much stress and anxiety, you must have agreements with other people. This is true for two rather obvious reasons:
· You cannot make money unless it changes hands in a transaction. And (minus few exceptions), you cannot legally make money unless you have a legal agreement first.
· You cannot leverage other people's time, money, or talent unless you have commitments from them that they will honor (or that you can enforce).
But far too often, small businesses fail to put their agreements in writing and in the right form. Then, when things don't go as planned (or someone forgets the plan), they have a hard time making things right. For at least these seven reasons, it is smart business to make sure your key arrangements are written and formed correctly.
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