Commercial Law
Five Things Every Small Business Owner Should Have in Writing
Mike Murdock
5 min read
Most commercial disputes come down to one thing: someone assumed something was agreed when it was not. Here are the five documents that prevent most of the problems we see.
In fifteen years of commercial legal work, the majority of disputes I see could have been avoided with a basic written agreement. Not a 40-page contract drafted by a City firm — a clear, simple document that records what was agreed and what happens if it is not.
Here are the five things every small business owner should have in writing:
A shareholder or partnership agreement. If you are running a business with anyone else, you need an agreement that covers what happens if one of you wants to leave, if the business needs to raise money, or if you disagree on a major decision. The time to agree these things is before there is a dispute, not during one.
A written contract with every supplier and customer. A contract does not need to be long. It needs to be clear about what is being provided, when, for how much, and what happens if either side does not perform. A one-page document signed by both parties is worth more than a ten-email thread.
Employment contracts for all staff. You are legally required to provide a written statement of employment particulars from day one. But a proper employment contract should also cover confidentiality, intellectual property, and post-termination restrictions. These are difficult or impossible to introduce later.
A confidentiality agreement before sharing sensitive information. If you are sharing business plans, financial information, or proprietary processes with a potential partner, investor, or supplier, get an NDA signed first. It takes ten minutes and prevents a great deal of pain.
Terms and conditions on your website and invoices. Your terms of business govern your relationship with every customer. They should cover payment terms, liability, intellectual property, and dispute resolution. If you do not have them, you are operating on your customer’s terms by default.
If any of these are missing from your business, contact us. We can review what you have and prepare anything that is missing — usually at a fixed fee.