We owners of small businesses are usually too busy to dot the 'i's and cross the 't's, aren't we? Who was it who said that an ounce of routine was worth a ton of inspiration?

There are 2 reasons why most of us engage in extreme learning experiences. The first reason is that we sign papers that we shouldn't. The second reason is that we don't get papers signed that we should! This is Africa - and in any fight the person with the most paper wins!

Let's look at a few things we shouldn't sign. We shouldn't sign sureties, of course. Even God says we shouldn't sign them - yet we do so daily because our bank manager says things like "It's our standard document." or "Everbody signs this form." or "We won't lend you the money unless you sign this form.". All good negotiating phrases - but not quite correct.

We shouldn't sign contracts for fax machines; photocopiers; and computers either - at least not the first document that we see. Almost everyone I know has been hurt by one of the many interesting clauses in just such contracts. You know - the documents which state that the goods always belong to the seller; but you're always responsible for every debt ever entered into between your firm and the bank for the rest of time and beyond!

We forget that any agreement is a negotiation - but most of us are simply too busy making money on the one side to realise that we're piddling it away on the other side - in all these documents.

And then we forget to get those documents signed that are so vital to our existence as businesses. These include simple things like account application forms. Interesting thing about the law - it's much easier to enforce an agreement when it's written down somewhere and is signed [both parties appear to have agreed to it] than to enforce that same contract when it isn't written down and either party can spend years debating each tiny item in this alleged agreement.

They also include employee application forms and agreements of employment. It's absolutely amazing how the paragon of virtue you hired as a programmer becomes awfully aggressive once you both realise that s/he will never be able to do the job you wanted done.

Just as an aside - we small business owners all struggle to delegate. There is a quick answer. Outsource! When you delegate a job to someone that is not an employee - and you don't have to pay if the job isn't done exactly the way you want - it's called outsourcing! Most folk I know are much better at outsourcing than delegating [and they don't peer over the outsourcees shoulder and proffer unwanted advice].

Back to the subject of the day. Paper! It simply makes sense for us business owners to have some paper ready to go when you need it. That informality that we enjoy so much, and which makes it easier to sell - also makes it much, much more difficult to collect when things go wrong. I don't know about you, but it's a pretty messy sight out there right now - lots of roadkill. It's a good time to be able to enforce those rights you have claimed for yourself with the documents you've had all your clients sign. [My definition of a client is someone who pays you for the value you're adding to their lives. If they're not paying you, by definition they're not clients, are they?]

Getting the right paperwork is quite simple. You can go to your attonrey and ask for a set of standard forms, although that could be a tad expensive. You can buy some software that has a whole bunch of documents ready to go - LegalWrite is such a product. You can even 'borrow' those same forms that you've already signed in favour of your own suppliers.

Paperwork has 2 main purposes. The pragmatic purpose is that it scares people into believing that you've got all your ducks in a row. If they've signed an account application they will be much more reluctant to mess you around [especially if it encompasses a surety]. The legal purpose is when you do get upset and actually take them to court. At this point it saves time and effort - both of which mean huge savings in attorneys fees.

So, have a look at where you are at risk from the activities of others - and put some documentation in place to eliminate [or at least reduce dramatically] those risks.

This weeks article was inspired by John Feitelberg, who reminded me about something we all take so much for granted.

© Peter Carruthers, www.petesweekly.co.za

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