Our last blog discussed making your business work for you. To achieve that level, you must first have a business plan. Think of it as the GPS in your car. It tells you where you are going and how you will get there. Granted, you’ll encounter roadblocks, traffic, and other unforeseen obstacles. That’s life. Pivot and adapt. This is why you update your business plan every 18 months. Secondly, we went over the profit-first method. It’s a system for paying yourself first and ensuring you run your business rather than letting it run you. Today, we will look at two other questions you must address. The Numbers Behind Running A Business Question number three is near and dear to my heart. Granted, this is a law firm—but it’s also a business. By definition, lawyers don’t do numbers (probably why we chose to go to law school instead of another route). But do you know your numbers? When you’re running a business, as opposed to it running you, you must know its financial condition. You can’t manage what you can’t measure. Put yourself in a position to make decisions based on metrics. Otherwise, you’re left with nothing but emotions. Imagine an opportunity coming your way; how will you know whether you should pursue it? We’re not here to argue against instincts or feelings, but a more consistent way is to make decisions based on whether they make financial sense. Every business should have three basic reports and a system in place to create them. Profit and loss statements (income statement) Balance sheet Cash flow report Have Your Systems Documented In Writing The final question is whether you have written systems and procedures. Although employee handbooks fall under this category (and they are crucial to have), it’s one of many things you should have documented. When your business works for you, it means you are not doing all the work for your business. You’re no longer doing all the work to make a profit and get revenue. That doesn’t mean your products or services aren’t at the level you want them to be. Having written systems and procedures is a business owner's way of ensuring their business is run as they want it to be. Systems also educate and inform the rest of your staff. This encompasses everything from knowing how to answer the phone to sending an invoice. The more consistency you have, the easier it will be to replace your employees when they leave. It’s also easier to determine whether a problem is because of a person or system. Run Your Business, Man We’ve covered the four critical questions every business owner must ask to ensure they control their business rather than the other way around. From having a solid business plan and adopting the profit-first method to understanding your numbers and documenting your systems, these steps will help you streamline operations and position your business for success. If you're ready to take the next step in gaining control and setting your business up for long-term growth, schedule a free consultation with us today. Let us help you build a business that works for you.

As a business owner, it’s very easy to work on your business; it’s what we do. We put focus on trying to grow and build it. You must stop and realize that the business must also work for you. Though you may not have consciously realized it, it’s one of the reasons you began one. People don’t see the behind-the-scenes. They aren’t there when you’re grinding away in your office, car, or house, working on your ideas before hunting down the next opportunity. We live off the concept that we must get business to have a business. The fact is that a lot of people fail because they aren’t aware of the commitment and drive it takes to build a company. Regardless of how great an idea is, it’ll never ripen without the work mentioned above. Ask anyone who has succeeded. They’ll tell you that success comes alongside ignoring the rejections while still driving forward. In the wake of setbacks, they get up, go to the event, resubmit a proposal, or knock on another door. If you appreciate what it takes, then you must also structure your business so that it gives back what you put into it. Building A Roadmap For Your Business The first is whether you have a business plan. Some people will quickly respond that they have a business plan because it’s what they built their company on. If you’ve ever met with investors or asked for a loan, you know firsthand how important they are. But what about now? You should redo your business plan every eighteen months. You and your external circumstances will change. A business plan is a roadmap. A surprising number of business owners don’t think about where they want to go and how they will get there. Yes, it’s a basic concept, but people get so caught up in the day-to-day that they separate themselves and take the time to write down where they see their business eighteen months from now. Your business plan forces you to look inside yourself and assess where you are and where you want to be—as an individual. Remember, a business should serve you. If you don’t know what you want, how can you create a company that will do it? You’re not here to serve your business. There are seven parts of a business plan: An executive summary of your business A description of your company Your products and services Market analysis and research A strategy and how it gets implemented How your company is organized A financial plan These components force you to think about where you’re going and how to get there. Understand that this is a roadmap and will change in 18 months. Should I Pay Myself First? This may seem obvious, but it’s more about when you pay yourself. You own a business to be profitable. It supports the things you want to do personally. If you’re paying yourself first, then your business is running you. Don’t get me wrong, reinvesting money in your business is essential to growth. It shouldn’t come at the expense of paying yourself. Question whether you are the master or the servant. Easier said than done. In certain months or quarters, the cash isn’t quite right. You look to keep the lights on making payroll. You figure you’ll be ok. The problem is that this mindset becomes a pattern. One book I highly recommend is Profit First by Michael Michalowicz, which outlines a straightforward cash flow management system. While there are many similar systems, the key takeaway is to find one that works for you and stick to it. The profit-first method divides all income into separate accounts based on predetermined percentages. For example, if $100 comes into your business, you might allocate 10% to a profit account, 5% to a tax account, and 40% to an operating expenses account. This practice ensures that you constantly set aside funds for essential areas, such as taxes and profit, before covering expenses. By consistently following this approach, you create a financial cushion for your business. The exact percentages apply during high-revenue months, so your accounts continue to build. This cushion supports you during slower periods when revenue might be lower, providing stability. Additionally, profit first emphasizes paying yourself by making your salary a fixed expense in your budget. This ensures that you prioritize your compensation as part of your business's overall financial plan rather than treating it as an afterthought. Stop Letting Your Business Run You For the next blog in this series, we’ll look at two other questions you must ask yourself. The Griffith Law Group protects your business. We’ll guide you through disputes, litigate when necessary, and serve as outside general counsel. Schedule a free consultation to learn more about how we can help you and your business.

Effective partnerships bridge the gap between leadership and employees. The end state is that everyone works toward a shared goal. Collaboration drives innovation, connects generations, and turns individual efforts into team achievements. As remote collaboration becomes more common and knowledge becomes more valuable than physical assets, understanding the true essence of partnership in the modern workplace is not just helpful—it's necessary. Companies that excel in collaboration are more adaptable and resilient. Businesses pivot as a means of survival, which is only possible when you have a team that relies on one another. How to Foster Open Communication Open communication is the foundation of a collaborative workplace. The leader’s role is to build an environment where employees share their ideas and carry out collective visions. Be transparent with your teams, share information, and provide updates regularly. When you are willing to adopt this level of openness, you’ll build trust, and everyone will know what goals they are trying to achieve. Take advantage of regular meetings, open-door policies, and internal digital communication tools. Team members are more willing to attend meetings when they know their ideas and concerns will be listened to. Two-way communication improves decision-making and makes employees feel valued and heard. This is why fostering an environment where feedback (not complaints) is heard is so important. Remember that there are ways to build trust without having meetings or expressing these desires directly. Develop avenues for your team to see the larger picture because they will garner a finer appreciation for their contributions. For example, you can utilize project management software, video conferencing platforms, and instant messaging apps to facilitate real-time communication. Encouraging Teamwork and Inclusivity Promote cross-functional projects where employees from different departments work together. This diversity of thought generates innovative solutions and gives individuals a deeper understanding of the company's goals. Inclusivity is not just a buzzword but a practice that ensures every team member feels valued and integral to the team. What is my role? How does it impact the company? Trust and respect are built when leaders are transparent, clear and model collaborative behavior. It is essential to foster a culture where team members feel safe expressing their ideas and opinions. Inclusivity is achieved through diverse hiring and giving people equal access to resources and training. Because we mentioned management software and intra-office communication tools, your team must know how to use these platforms to make their jobs easier. Recognizing and celebrating team successes reinforces the value of collaboration and inclusivity. Leaders should also provide mentorship opportunities to bridge knowledge gaps and foster a culture of continuous learning. Give everything you can to your employees, and don’t be afraid of doing so. Richard Branson said, “Train people well enough so they can leave. Treat them so well that they don’t want to.” You’ll create a sense of belonging and engagement among everyone. Emphasizing continuous improvement and adaptability keeps the team engaged and productive. You Built It; Let Us Protect It A collaborative workplace is a powerful asset, but even the strongest teams can face external challenges that threaten your business. The Griffith Law Group safeguards what you've built. Whether you're dealing with contract disputes, intellectual property issues, or other legal challenges, our experienced litigators are here to defend your interests and keep your business on the growth path. Schedule a free consultation so we can help you navigate complex legal disputes and protect your business from external threats.

Leadership infighting is a self-created, internal hurdle that erodes your business. These dynamics have led to commonly used phrases such as “toxic work environment” and “hindrances to productivity.” It is much more than those words accurately describe. You must understand how they form to address the problem(s). This, coupled with proactive measures and practical conflict management strategies, leads to team cohesion and healthier business operations. Begin with Using Effective Conflict Management Techniques Conflict management in business involves proactive and reactive approaches. Proactive conflict management equates to creating policies and developing frameworks that prevent conflicts from arising. For example, reducing bilateral conversations where team members complain about peers behind closed doors promotes transparency. Each member of your team has to move in the same direction as the others. When team members compete with one another for opposing outcomes, you will have infighting. Resolve this by establishing performance goals that reward division-level collaboration rather than individual success. Team-building activities based on frameworks like Richard Beckhard's GRPI model can enhance interpersonal skills and reduce conflict. Remember that reactive conflict management involves addressing and resolving disputes as soon as they occur. It’s putting out a fire at its incipient stage. This includes mediation sessions, where an impartial third party helps resolve conflicts. The key is intervening early when conflicts arise to prevent emotions from escalating and make resolution easier. Using team norms as a reference point ensures that resolutions are aligned with agreed-upon standards. Identifying shared goals facilitates compromise. Deliberately Create Policies That Anticipate Conflict If you look at any cohesive team, you will see they have shared values at their foundation. It isn’t enough to post things on a wall; your team must know and buy into these values. One of the easiest ways to get your team to truly own the company’s values is to allow them to create them. Good leaders form the framework, but excellent ones provide forums for their teams to openly discuss the business’s values. It allows your values to evolve; your employees will believe in them when they contribute. By fostering a respectful and open communication culture, businesses develop a culture that prevents issues instead of reacting to them. Developing clear roles and responsibilities reduces ambiguity. Regularly revisiting these roles ensures they remain relevant and effectively prevent disputes. Encouraging team members to voice their concerns openly and without fear can reduce tensions. Team members cannot view one another as threats to their success—budget in ways to incentivize team members to recognize each other's efforts financially. For example, if you run a small advertising agency, don’t reward the copywriter, account executive, or graphic designer for their work. Give bonuses based on the final products they create. “Winning” is a result of team efforts only. Instead of trying to eliminate conflict, prepare for its eventuality. Develop and implement policies that anticipate and address potential conflicts. These policies ensure that all team members know the steps to take when a disagreement arises. Instituting solid conflict management procedures resolves issues quickly. Training programs equip team members with the skills to handle these disagreements effectively. If there is a problem, every employee should know who to talk to and how the situation will be addressed. Conflict management training allows team members to recognize and address issues before they escalate. The Griffith Law Group Protects You From Internal Issues Managing internal disputes helps maintain a healthy business environment. At The Griffith Law Group, we help businesses like yours from internal disputes that disrupt your operations and hinder your success. Whether you’re facing legal challenges from employees, partners, competitors, vendors, or other entities, our experienced team is here to protect your interests and provide the strategic counsel you need. Schedule a free consultation today, and let us help you navigate and resolve your most challenging business disputes.

The fine print of service agreements often determines the strength of client relationships and the effectiveness of dispute resolution. Tailoring these agreements to your company's unique needs is not just beneficial; it's essential. Incorporating these critical provisions and considerations for crafting a customer service agreement will protect your business interests and foster long-term positive client interactions. Key Provisions for Dispute Resolution To prevent and effectively resolve disputes, your service agreement should include: Mediation Clause: This provision encourages resolving disputes through mediation before any legal proceedings. It's a cost-effective approach that saves time and maintains business relationships by allowing parties to discuss and resolve conflicts with a neutral mediator's help. Arbitration Agreement: More formal than mediation, arbitration involves a neutral third party making decisions on the dispute. It's quicker and usually less costly than court litigation. The agreement can specify whether the arbitration will be binding or non-binding, offering flexibility in how disputes are settled. Jurisdiction and Governing Law: Clearly define the legal jurisdiction and laws that will govern the contract. This clarity is vital for businesses operating across different regions, ensuring that both parties know the legal framework and procedures for resolving disputes. Limitation of Liability: This clause sets a cap on the amount one party can be liable for in a dispute, providing clear risk parameters. It helps manage financial expectations and reduces the potential for extensive legal disputes. Notice Period for Disputes: Establishing a timeframe within which parties must notify each other of disputes ensures prompt attention to issues, helping to prevent minor disagreements from escalating into major conflicts. Considerations for Your Customer Service Agreement When formulating your customer service agreement, consider the following to ensure it aligns with your business needs and goals: Clarity and Specificity: Detail the scope of services, timelines, payment terms, and other vital aspects of the relationship to prevent misunderstandings. Clear language reduces the risk of disputes and fosters a transparent business relationship. Customization to Business Needs: Reflect your specific services in the agreement rather than relying on a one-size-fits-all approach. Tailor the document to include performance standards, response times, and quality metrics that directly relate to your services, ensuring the agreement meets your business's particular requirements. Confidentiality and Data Protection: Protecting confidential information is fundamental for the increased reliance on technology. Include clauses that secure any shared confidential data and ensure compliance with data protection laws, safeguarding both your and your clients' information. Termination Conditions: Define the terms under which the agreement can be terminated, including breach of contract and failure to meet service levels. A clear termination process allows both parties to end the relationship if necessary, with an understanding of the consequences. Flexibility for Future Changes: Business environments are dynamic, and agreements may need to adapt. Incorporate provisions that allow for the review and modification of the agreement, ensuring it remains relevant and beneficial over time. Crafting a customer service agreement that is comprehensive, clear, and tailored to your specific business needs is crucial. It not only sets the foundation for strong client relationships but also provides a robust framework for resolving disputes efficiently. At Griffith Law Group, PLLC, we believe in the power of well-crafted agreements to prevent disputes and foster positive business relationships. Our team is dedicated to ensuring your service agreements are designed to meet your unique business needs while providing solid legal ground for any disputes that may arise. Let us help you create agreements that protect your business interests and support your growth. Contact Griffith Law Group, PLLC, for a consultation that puts your business first.

Contract negotiations can feel like a high-stakes game, especially for small businesses dealing with larger companies. The right approach can turn these negotiations into opportunities to secure favorable terms and build solid business relationships. This blog sheds light on how small businesses can effectively negotiate contracts, ensuring their value is recognized and their interests are protected. Understand Your Value Recognizing your business’s worth is the first step in negotiation. What unique service or product do you provide? How does it stand out in the market? This knowledge is your power in negotiations. It helps you articulate why your business is vital to the larger entity and ensures you enter discussions with confidence. Understanding your value helps you to communicate clearly why a larger entity should want to work with you, setting the stage for more favorable negotiation outcomes. Know What Your Value Is Worth Determining the financial worth of your offerings is crucial. It’s about finding the sweet spot where your price reflects your value without underestimating your business or asking too much. This balance is key to successful negotiations. Being informed about the market rate for your services or products allows you to negotiate from a position of strength, ensuring you receive fair compensation for what you offer. The Power of Asking Negotiation is an expected part of business interactions. Many small business owners hesitate to negotiate, fearing it might endanger the deal. However, asking for better terms often leads to improved outcomes. If the larger company is not open to negotiation, it may reveal a lot about the future of your business relationship with them. A willingness to negotiate demonstrates respect and recognition of your business’s value. It’s essential to be assertive in negotiations, as this can significantly influence the terms of the contract and the nature of the business relationship. Be Realistic About Your Company’s Circumstances Every negotiation is influenced by the current context. What you offer today has a specific value, which might be affected by various factors like market demand and economic conditions. Sometimes, accepting a deal that’s less than perfect can open doors to future opportunities and relationships. It's crucial to assess your immediate financial needs against the potential for long-term gains and to understand how your business's financial standing affects what terms you can accept. Focus on the Business, Not the Personal It’s important to remember that negotiations are about the business, not personal feelings. Challenges and rejections in negotiations are not personal attacks but part of the process of finding mutually beneficial terms. Keeping discussions focused on the business aspects helps prevent misunderstandings and promotes a professional approach to negotiations. The courage to ask for favorable terms requires a clear understanding of your business’s value, and the wisdom to balance the realistic current needs with future goals. By focusing on the business aspects of negotiations and maintaining a clear perspective on what is achievable, small businesses can tackle contract negotiations successfully, securing terms that support their growth and stability. Griffith Law Group, PLLC, understand the importance of effective contract negotiations for small businesses. Our team is dedicated to helping you secure the best possible terms in your agreements, ensuring your business's interests are protected. Call us at (202) 499-5160 to learn how we can assist you in your next contract negotiation, ensuring your business’s value is recognized and respected.

Acquiring a business is a significant milestone for any entrepreneur, particularly for small business owners taking this leap for the first time. The process involves a series of critical steps, each requiring careful consideration to ensure the venture's success. There are at least five critical factors that small business owners should weigh carefully when embarking on the acquisition process, with a special focus on the legal dimensions that underpin a successful transaction. 1. Understanding the Legal Framework The foundation of any business acquisition is a solid understanding of the legal framework that governs mergers and acquisitions. This includes corporate law, contract law, employment law, and sometimes international law. Before proceeding with an acquisition, it's crucial to grasp the legal requirements for transferring ownership, understand the implications for employees and existing contracts, and identify any regulatory approvals that may be required. This foundational knowledge can significantly influence the strategy and structure of the acquisition. 2. The Significance of Due Diligence At the heart of the acquisition process is due diligence, an exhaustive investigation that extends beyond mere financial audits to cover legal, operational, and strategic examinations of the target company. Legal Due Diligence: This critical step involves a thorough review of the company's legal standings, including compliance with laws and regulations, litigation status, intellectual property rights, and employment contracts. Identifying potential legal liabilities or risks at this stage can prevent unforeseen complications that could affect the business's valuation or future operations. Financial Due Diligence: An in-depth analysis of the company's financial health, including its financial statements, tax compliance, and liabilities, is essential to uncover any hidden financial problems. Operational Due Diligence: Assessing the operational aspects, such as asset condition, operational efficiency, and management quality, provides insights into the company's current performance and future potential. Strategic Due Diligence: Understanding how the target company fits within your business model is crucial for evaluating growth and synergy opportunities post-acquisition. 3. Negotiating the Purchase Agreement The negotiation of the purchase agreement is a critical phase where the terms, conditions, and structure of the deal are defined. This document outlines the scope of the sale, purchase price, payment terms, warranties, indemnities, and conditions precedent to the deal's closing. The role of legal counsel is paramount in drafting and negotiating the agreement, ensuring that it protects your interests and minimizes potential risks. 4. Planning for Post-Acquisition Integration The importance of post-acquisition integration cannot be overstated, yet it is often overlooked amidst the excitement of closing the deal. Successful integration is crucial for realizing the acquisition's intended benefits. This phase involves merging the operations, cultures, and systems of the two businesses. Addressing legal considerations, such as aligning employment policies and consolidating contracts, is vital for a smooth transition and continued regulatory compliance. Effective integration planning and execution are key determinants of the acquisition's success. 5. Mitigating Risks Through Professional Advice It’s a given that seeking professional advice is indispensable. Legal advisors with experience in corporate transactions, financial advisors for comprehensive due diligence, and strategic consultants for assessing potential synergies play crucial roles in guiding you through the process. Developing a partnership with legal professionals can offer valuable insights and advice, helping to identify and mitigate risks before they escalate. With careful planning, diligent investigation, and professional guidance, small businesses can effectively overcome the challenges of mergers and acquisitions, achieving their strategic objectives. If you're contemplating buying a business and seek to understand the legal challenges involved, Griffith Law Group, PLLC, is here to assist. Our team is ready to guide you through the intricacies of the acquisition process because we want to see your business succeed. Schedule a consultation with us today to explore how we can support your business acquisition journey.

Small businesses form the backbone of the economy, providing jobs, fostering innovation, and driving growth. Within these enterprises, the creation of a positive and productive work environment is paramount. This necessitates a focus on inclusivity and the effective handling of allegations of discrimination to avoid disputes that can disrupt workplace harmony and productivity. Addressing these issues proactively is not only a legal requirement but also a strategic approach to maintaining a cohesive, efficient team. Understanding "Reasonable Accommodation" One of the key strategies in fostering an inclusive workplace is the provision of reasonable accommodations. This term refers to changes or adjustments made to enable employees with disabilities to perform their job duties. The requirement is that these accommodations do not cause undue hardship to the business. The challenge often lies in the interpretation of what is considered "reasonable," which can vary, leading to potential misunderstandings. Some employers may believe that any accommodation that allows an employee to continue working is adequate. However, if such accommodations fail to enable the employee to perform essential job functions or significantly impair their ability to work, they may not meet legal standards. On the flip side, when accommodations do not lead to the desired productivity levels, frustration can ensue, or worse, the employer may terminate the employment. This approach can create legal and ethical dilemmas and detract from the business's overall work environment. Engaging HR and Legal Counsel Effective collaboration between human resources (HR) services and legal counsel can play a crucial role in managing workplace accommodations and discrimination claims. Early engagement of HR and a legal professional in fashioning a response to a request for accommodation ensures that any action taken complies with the law and considers the employee's needs. Documenting every step taken in response to accommodation requests and discrimination claims is essential. This includes keeping records of the request, the evaluation process, communications with the employee, and any actions taken. Such documentation should articulate the reasoning behind accommodation decisions, including consultations with HR or legal counsel and considerations of undue hardship. If your small business is seeking guidance on creating an inclusive workplace and effectively handling discrimination claims to avoid disputes, Griffith Law Group, PLLC is here to assist. Our team is ready to provide the support and expertise needed to navigate these challenges successfully. Schedule a consultation with us today to learn how we can help you maintain a positive and productive work environment.

For any business, particularly those with multiple partners, operating agreements or bylaws are not just formalities but essential tools for efficient management and conflict resolution. These documents are crucial for many reasons and should never be rushed or overlooked. Consider it this way: would you take a cross-country road trip without a map? You might get to the other side eventually, but it will be expensive, time-consuming, and even aggravating at times. Running a business is a long-haul trip, and the operating agreement or bylaws are your ticket to successful management. Structuring and Managing the Business Operating agreements and bylaws serve as the backbone of a business's internal structure. They define the roles, responsibilities, and relationships among the partners and management. This clarity is vital for smooth operations, as it outlines the decision-making processes, duties, and expectations for each member of the organization. Resolving Disputes and Protecting Interests Disagreements are inevitable in any business. Operating agreements and bylaws provide a pre-established framework for resolving these disputes. This can save time and resources by avoiding litigation. Additionally, these documents protect the business and its partners from state default rules, which might not align with the specific interests or intentions of the business. Handling Changes and Transitions Businesses evolve, and changes such as adding new partners, selling the business, or a partner's departure need to be managed effectively. Operating agreements and bylaws set forth procedures for these transitions, ensuring they are handled smoothly and fairly. This includes determining the value of the business and each partner’s share, often necessitating a third-party evaluation. The Risks of Ambiguity Starting with an ambiguous operating agreement or lacking one entirely can lead to complications and increased costs. However, it’s never too late to create or amend these documents. Without them, a business must adhere to the statutory rules of its jurisdiction, which might not be favorable or suitable for its specific needs. Teaming Up to Bring Clarity Creating or updating an operating agreement or bylaws is a significant decision, but it's a crucial step for the long-term stability and clarity of your business. These documents act as a guidebook for your business's internal operations and help manage expectations and responsibilities among partners. They also offer a structured approach to dispute resolution and facilitate smooth transitions during major changes, like adding new partners or selling the business. Without these agreements, your business is subject to state default laws, which might not align with your specific needs or goals. Consider the benefits of clear and tailored documentation for your business's future success. At Griffith Law Group, PLLC, we understand the significance of these documents in protecting your business and ensuring its successful operation. If your business needs to create or revise its operating agreements or bylaws, or if you have any concerns regarding your current business structure, it’s time to create a partnership with our team. Let us assist you in securing the foundation of your business for its present and future success. Contact us today by calling (202) 499-5160 for a comprehensive legal approach tailored to your business needs.