Everyone in business wants to collect their accounts receivable. It’s easy – you earned the money and you should be paid; however, that is not always how it works out. And, when the account is not paid, you inevitably have to decide whether to file suit to collect the account, and whether you want to spend the money to do so. There is no question that lawsuits are expensive, and that leads to the question of whether the costs can be kept in check and whether attorney’s fees and litigation expenses can be recovered. The answer to the first question is now “Yes,” and the answer to the second is “Well, maybe.”
Modern commercial contracts often have dispute resolution provisions buried in the “boilerplate” at the end of the contract. Often, the boilerplate provisions at the end of contracts are overlooked because they are “standard”, but they should never be overlooked or skimmed because they can have significant consequences. Dispute resolution clauses are one of those since they will define how the parties will resolve any disputes. They will typically specify the state law that will apply to any disputes as well as the forum in which any dispute must be resolved. On occasion, the provisions will address mediation, arbitration and litigation. The question is, what procedure is best for a given situation?
You may not be able to quantify your company’s investment in its business information, but one of its most valuable assets is the accumulated information your company uses to compete in its marketplace. That information can take many forms – customer lists, strategic plans, pricing strategies, material sources, production costs, technical information, formulas, and many more. In the hands of a competitor, that information could give it a competitive advantage and result in loss of sales, market share, relationships and profits that drive the success of your company. The loss of that information is a devastating set back for any company; therefore, if you care about losing your top customers you should be proactive in protecting your business information.
It is often said that the most valuable asset of a business is its people. I am going to take a slightly different view and suggest that while employees are a very valuable asset, they are not the most valuable asset. Rather, I am going to suggest that a company’s systems and business information are its most valuable assets. After all, employees come and go, but solid systems and protection of your business information ensure that the success of your business is not disrupted by a staffing change.
Would you invest $5,000 with the potential to make $100,000 in three years? Most of us would without too much thought. Would you invest that much or less now to potentially save $100,000 over the next three years? Unfortunately, far too many entrepreneurs pass on that opportunity when they should be embracing it.
The year 2020 has brought unprecedented challenges and difficulties to virtually every business owner. But, those challenges do not have to sink every ship, as some owners will survive the challenges while others will find new opportunities. It is often said that 80% of results comes from 20% of causes. Generally, that means that 80% of revenues will come from 20% of your customers, that 80% of problems come from 20% of the issues you face, and so on. If you find and focus on “the 20%” you need to succeed, you will find the most likely path to success. This article begins a series focusing on what you can do to find your 20%.