Business interruption insurance
Business Planning

Understanding Business Interruption Insurance

As a business owner, you may be familiar with the need for liability insurance to protect yourself and your business from lawsuits caused by injuries or accidents. But how do you protect your business’s income from outside forces that affect your productivity, supply, and revenue?

Picture this: You've built your dream business from the ground up. It's thriving, and you're enjoying the fruits of your labor. But then, disaster strikes. Whether it's a natural calamity like a hurricane, a fire, or a global pandemic that forces you to shut your doors temporarily, your income takes a nosedive. That's where Business Interruption Insurance comes in.

What is Business Interruption Insurance?

Business Interruption Insurance, also known as Business Income Insurance, is like a safety net for you and your business. It's an insurance policy that provides financial support when your business operations are disrupted due to unforeseen circumstances, such as natural disasters, accidents, or other covered perils.

In many ways, Business Interruption Insurance is similar to personal Long-Term Disability Insurance but protects the income generated through your entire business rather than your personal income alone. Essentially, it helps replace the income and revenue your business would lose during the downtime caused by outside events.

How Does It Work?

Business Interruption Insurance begins with a “trigger event,” which is an unexpected incident such as a fire damaging your store or a government-mandated shutdown during a pandemic that interrupts your business operations. This event sets the insurance process in motion and is the beginning date of your insurance claim.

Similar to personal disability insurance, there is a waiting period between the trigger event and when your business can collect benefits from the policy. This waiting period can range from a couple of days to a couple of weeks, so it's important to be financially prepared to handle immediate expenses during this time. Thankfully, most policies only require a waiting period of 48-72 hours before benefits will be paid.

Once the waiting period is over, the “business interruption period” begins. This is a defined timeframe within which the policy covers your lost revenue and usually extends until you can reasonably resume your business operations.

Beyond income loss, Business Interruption Insurance may also cover extra expenses. These are costs incurred to minimize the disruption to your business, such as renting temporary office space or investing in advertising to attract customers back. Every policy comes with a coverage limit, so it’s crucial to fully understand these limits when purchasing your policy as it will affect the level of protection you have.

What Does It Cover?

Business Interruption Insurance covers a range of scenarios. Its primary coverage reimburses you for lost income you would have earned if your business were operating normally. The insurance can also cover ongoing operating expenses like rent, utilities, and employee salaries during the downtime.

If you need to temporarily relocate your business due to a fire, flood, or other peril, the policy can cover the costs of setting up shop elsewhere. If your business owes loan payments, it can help cover those payments. Business Interruption Insurance may even cover the taxes you owe during the interruption period.

Now, just like any insurance, Business Interruption Insurance has its limits. It usually doesn't cover business losses due to fire or building problems that result from your own poor maintenance of the property. The coverage also doesn’t cover power outages unless they're directly caused by a covered event, like a severe storm.

After the COVID-19 pandemic, many insurers added pandemic exclusions. However, it's worth checking with your provider as some policies may include pandemic coverage as an add-on.

Protection and More for Your Business

In the world of business, anything can happen. That's why having a safety net like Business Interruption Insurance is a smart move. It ensures that you and your business won’t lose the income and progress you’ve worked so hard to achieve if the unforeseeable happens. Just remember, every business is unique, so it's essential to customize your coverage to suit your specific needs.

If you want to make sure your business is protected from unplanned events, give my office a call. While I don’t sell insurance, I can analyze your existing Legal, Insurance, Financial, and Tax systems during a LIFT Business Breakthrough Session to make sure you have the protection and support your business needs to grow and thrive.

If we find that any of your systems aren’t set up in the best way, I can guide and educate you to make sure these systems are structured to serve your business’s future. I can also provide you with connections and trusted professional contacts who can make sure you have the proper Insurance coverage for your needs.

To get started, schedule a free 15-minute to learn more about what a LIFT Business Breakthrough Session can do for your business.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & LegacyPlanning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning™ Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Assessment
Business Planning

Would Your Business Pass Our 20-Point LIFT Business Assessment?

As a business owner, it's crucial to regularly assess and improve various aspects of your business to ensure its long-term success and protect your assets. But most entrepreneurs struggle to find the time to review their systems and most don’t know where to even start or what to do with the information they find when putting their company under the magnifying glass.

That's where the 20-point LIFT Business Assessment comes in. After you take it, I’ll take you and your business through a LIFT Business Breakthrough Session to walk you through a detailed survey of your business systems, plans, and structures so we can consider whether those systems are supporting or hurting your business goals and objectives.

The LIFT Business Assessment guides our discussion by looking at your Legal, Insurance, Financial and Tax foundations -- both from a place of whether you understand the systems and whether you have implemented them --and supporting you to get in the know every aspect of your business within the Legal, Insurance, Financial, and Tax structures that your company depends on. By taking the Assessment and then going through the Audit together, you account for all of the pieces needed to make your business work. I then help your company address gaps in your LIFT foundations that at best may be getting in the way of your business’s performance and at worst pose a real liability to your company.

In this blog, we will briefly explore the key areas covered by the LIFT Business Assessment and the Audit and why they are so important. After reading this blog, I invite you to take the 20-point LIFT Assessment - a quick quiz that tests the confidence you can have in your LIFT systems.

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Legal Structure

One of the foundational aspects of any business is its legal structure. This includes whether you're operating as a sole proprietorship, partnership, corporation, or LLC. The choice of legal structure can significantly impact your business's liability, taxes, and even your ability to raise capital. Using the LIFT Business Audit will help me evaluate whether your current legal structure aligns with your business goals and provides the necessary protection.

Legal Agreements

Clear and comprehensive agreements are essential for any business. These agreements can include contracts with suppliers, clients, employees, and partners. They serve as the foundation for your business relationships, establish expectations, and help prevent disputes down the road. If we find that your business’s legal agreements are lacking or don’t exist at all, I’ll work with you to create, execute, and monitor your strong agreements that protect your business interests instead of leaving them vulnerable.

Your Team

Your team is the lifeblood of your business, and assessing the health and satisfaction of your employees and contractors is vital. Equally important is knowing whether your team members’ employment statuses are categorized in the right way and that your payroll systems are set up properly and at a rate that keeps the best talent on your team.

If the Audit finds that the plan in place for your team members is half-baked, I can assist you in establishing strong employment contracts, and employee handbooks, and make sure your company is in compliance with labor laws.

Business Succession

Planning for the future is essential, and this includes planning for the future of your business. Whether you plan to pass it on to a family member, sell it, or wind it down, a solid business succession plan is crucial. My LIFT Business Audit will assess your current succession plan or help you take the first step toward establishing one if you don't have one in place.

Business Insurance Protections

Insurance is your safety net in times of crisis. It's important to evaluate your business insurance policies to ensure they adequately protect your business and assets. Do you have the right types of insurance and the right amount of coverage? Having the right insurance can mean the difference between your business surviving a disaster or facing financial ruin.

Financial Systems

Effective financial management is crucial for business success. Using the LIFT Business Audit, I’ll assess your financial systems and processes to ensure they are efficient and compliant with accounting standards and tax regulations. If you don’t have a working system for your financial statements, budget, and cash flow management, you’re doing your business and yourself a disservice.

Tax Strategies

Taxes are a significant expense for businesses, and strategic tax planning can lead to substantial savings. During the LIFT Business Audit, we’ll review your current tax strategies and identify opportunities for tax optimization, such as entity structure, deductions, tax credits, and incentives.

Making Sure Your Business Passes The Test

Keeping all of your business systems updated, efficient, and compliant is a challenge for any entrepreneur. That’s why I use the LIFT Business Assessment and Audit as a powerful tool to support you to evaluate and improve the legal, insurance, financial and tax parts of your business. From legal structures and agreements to team management, business succession, insurance, financial systems, and tax strategies, each component plays a vital role in your business's overall health and success.

By understanding how your business is currently performing in these areas, you can make informed decisions for your business that protect it from financial liability and allow it to grow into your vision. As your LIFTed Business Advisor, I am here to support you every step of the way.

If you’re ready to test your confidence in your own business structures, please email me to receive the free 20-Point LIFT Assessment. This five-minute assessment will give you a starting point to recognize where your systems may need improvement. If you aren’t 100% confident that your Legal, Insurance, Financial, and Tax systems are set up in the best way, contact me today to schedule a full LIFT Business Breakthrough Session and LIFT Business Audit to get started on the path to a more secure and prosperous business.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Intellectual Property
Business Planning

You Have IP! Be Sure Not to Lose It … Here’s How

You don’t have to own a large company to own intellectual property. If your business creates inventions, written and artistic works, designs, logos, brand names, and images, you almost certainly have intellectual property. However, because intellectual property is intangible, it’s often overlooked in your business’s succession plan and your own personal estate plan.

Even if you’ve worked with a lawyer to set up your business entity or a CPA to file your taxes, those professionals may not be thinking about what happens to your intangible business assets upon your death. Many lawyers who focus on estate planning don’t really understand the value of intellectual property and how to protect it. We do, and now so will you.

Even if your business’s intellectual property doesn’t seem that valuable to you right now, it may be worth far more than you realize, and possibly even more when you die or if you become incapacitated. It may also hold significant sentimental and monetary value for the people who love you, and without properly planning for these works in your succession plan and estate plan, your family could lose these valuable assets forever.

It’s essential that you take the proper steps to not only protect these intangible assets during your lifetime but also ensure that your business’s intellectual property is properly handled following your death. That way, the monetary and human value of your intellectual property isn’t lost forever when you die.

Safeguard Your Intellectual Property During Life

While you might think that identifying, protecting, and valuing your business’s intellectual property is something that only applies to big companies, that’s definitely not the case. Your intellectual property may have more monetary value than you realize and could be of even greater value to your loved ones after you’ve died.

The first step to take in protecting your business’s intellectual property is to formally document it in an inventory of assets that describes what the asset is, where it’s located, and how to access it if it’s a digital or intangible item. This is something I help all of my clients create to ensure that no asset, whether tangible or intangible, is left out of their estate plan.

The next step is to consider if any of your intellectual property should be legally registered in the form of trademarks, copyrights, and patents with the U.S. Patent and Trademark Office. Original works are automatically copyrighted when they are created, but without legally registering the copyrights, it can be difficult to prove and enforce the copyright if someone steals your business’s work and presents it as their own. If your company is lending, renting, licensing or selling anything you’ve created to a third party, it’s also important to have the proper legal agreements and contracts in place to ensure there’s no question about who owns the material.

Likewise, if your business doesn’t have royalty and licensing agreements for products that are lent out to other companies, non-compete agreements for employees, or work-for-hire provisions in your agreements with independent contractors and vendors, now is the time to do so.

Don’t wait until your business’s intellectual property gets stolen or you receive a cease-and-desist letter to put these protections in place. Registering a trademark or copyright might cost you time and money, but failing to register your business’s original works can cost you far more than that in legal fees or the lost value of those business assets, especially if your company or your family end up in court trying to fight for what you created.

Protect Your Intellectual Property for Future Generations

In addition to protecting your business’s intellectual property during your lifetime, it’s equally important to plan for what will happen to these assets at your incapacity or death and to protect your heirs from a potentially long and costly court battle over the ownership of your company’s intangible assets.

The most important thing is to make sure that your business successor or family can locate and access your company’s intellectual property after you’re gone. Otherwise, it could be lost forever.

Once you have created an inventory of your assets, you must make sure your successors and family know how to find your inventory so that if you die or become incapacitated they can easily locate and access your company’s assets. Your inventory should also include how each asset is accounted for in your succession plan and whether you share ownership of any intellectual property with another person or company.

To make sure all of your business assets are planned for in the right way, it’s imperative to meet with an attorney who has the experience and knowledge to plan for your company’s intellectual property and protect any future income the property may generate for your business and your loved ones.

Your attorney should help you plan for each asset, how it will be managed in the company, how its value will be distributed upon the company’s sale, and how income generated from its use will be dispersed or invested, all while avoiding the need for a long and costly probate proceeding.

If you think this all sounds overly complicated, imagine how much more difficult it will be for your loved ones or business partners to deal with it should something happen to you. In fact, it could prove impossible for them to handle these matters in your absence, which is why it’s so important for you and your legal team to take care of these issues now. That way, your family isn’t stuck trying to clean up your mess after your death.

Planning for All of Your Assets, In The Best Way

Even if your company isn’t on the Forbes 500 list (yet), you very well may have valuable intellectual property, and chances are that property has not been adequately documented or accounted for in your business succession plan and your personal estate plan. Besides monetary value, your company’s intellectual property reflects your heart, soul, and personality and may have the ability to provide for your family for years to come.

To make sure all of your assets are protected and planned for, including your business’s intellectual assets, give us a call. As your Personal Family Lawyer® firm with a business planning focus, we offer expertise in documenting, valuing, and protecting your intangible assets so your loved ones can benefit from these creations for generations to come.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Business Mentor
Business Planning

Paying It Forward: How to Build Your Legacy Through Mentorship

As a business owner, it can be easy to see an opportunity to mentor a young professional as a purely charitable experience. But mentorship can play a pivotal role in shaping your legacy when you approach it with the right mindset. Not only does mentoring give you the opportunity to invest in the life of an aspiring businessperson, but it can also provide you with a unique perspective on your business and a chance to create a lasting impact in the community.

In this week’s blog, we’ll explore how mentorship can propel your aspirations and shape the legacy you're building for yourself and your business.

Share a Vision and Drive For Success

Mentoring isn't just about imparting knowledge; it's about instilling a vision of growth, innovation, and unwavering commitment. By envisioning a positive future for your mentees, you are simultaneously reaffirming your aspirations for yourself and your business.

As you go through the mentorship process, you’ll find yourself examining your processes and goals in service of providing a good experience to your mentee. What do you want your business to look like? What impact do you want it to have on your team members, community, and family?

Considering these questions throughout the mentorship process will not only provide guidance and inspiration to your mentees but will keep your vision for your business alive and at the forefront of your actions. As you nurture your mentees’ potential, you reinforce your commitment to progress for your business and your position as a driving force in your industry.

Mentees benefit when people with experience encourage them to keep their eyes on the prize, and mentors benefit by reaffirming the principle that envisioning a positive future—and working toward that future—is the key to success. As a mentor, you enrich your business and leave an impact on your community as a leader who cares about the success of others.

Learn Through Shared Experience

It may seem like the mentee is the only one learning and growing in a mentorship relationship, but mentorship isn't a one-way street; it's a dynamic exchange of wisdom, ideas, and insights. While mentoring, you’ll refine your skills and gain fresh perspectives from your mentee. When you open the doors of experiential learning for your mentees, you're inviting them to journey alongside you in real-world business challenges and triumphs, and with those experiences will come valuable feedback for you as the business owner.

As you begin showing your mentee the ropes of your business, how it’s run, and the different roles and departments that allow it to function, you yourself will re-learn essential components of your business that you may not have personally been involved with in some time. Teaching someone else about your company and its processes will also put you in a key position to reevaluate the things that are working well for your company and the areas that need improvement.

As you exchange information with your mentees and seek to provide them with a strong mentorship experience, you may want to reevaluate your strategies, adopt new processes, and bolster your professional acumen. Your mentees will be in a unique position to offer feedback on your business systems and processes, as well as your company’s public reputation and customer experience.

By facilitating their growth and learning by actively involving them in the day-to-day work of your business, you unknowingly cultivate your own learning and create a legacy of continuous evolution, innovation, and stewardship of your company and of the people who work in it.

A Legacy of Leadership

As a busy entrepreneur, you may worry that mentoring young professionals will be time-consuming or not create an immediate benefit for your business. But by dedicating time and energy to mentorship, you showcase the heart of a leader who not only envisions a brighter future for their industry but also actively nurtures that vision by passing on knowledge of the field to the next generation of leaders.

This authentic commitment to your industry and those in it not only fuels your mentees' ambitions but also establishes you as a trusted beacon in your industry – an integral facet of your enduring business legacy. It makes you a more valuable member of the business community, a necessary component of your career advancement and business growth.

Your mentorship opportunities will also create more awareness of your business in the community, a sense of public trust in your company, and a growing knowledge base of potential customers, clients, or referrals. In this way, your company will increasingly become a household name, you will develop personally, and you’ll refine your legacy as an integral leader in your company and your community.

Guidance for Building Your Legacy From a Law Firm With Heart

As your Personal Family Lawyer® firm, we understand that your business is made up of more than just business documents, and we know that a true sense of success and satisfaction in your business comes from more than revenue - it comes from building a legacy that represents your heart as a leader.

We are experienced in using a heart-centered counseling approach to help entrepreneurs define and build their legacies, and we can put protective measures in place to ensure your time can be spent on growth and giving back to the business community instead of putting out fires and fixing problems. And through our LIFT Business Breakthrough Session™ we can help you implement robust Legal, Insurance, Financial, and Tax systems that protect your interests while you help others—and yourself—envision and work toward a more positive future.

To learn how we can help you, schedule a free 15-minute call with us to discuss the dream and vision you have for your business.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Money Dismorphia
Business Planning

Embracing Abundance: Liberating Your Business from Money Dysmorphia and Fear

In the exhilarating journey of running a business, there's an often unspoken challenge that many entrepreneurs face - the distortion of one's perception of money. This phenomenon, referred to by Personal Family Lawyer® CEO and Founder, Ali Katz, as "Money Dysmorphia," stems from deep-seated, often inherited fears and beliefs surrounding money. When Money Dysmorphia exists in a blind spot, it can cast a shadow over your business, constraining growth and perpetuating scarcity-based thinking.

Imagine this: you hold in your hands a limitless reservoir of potential. This vast expanse of opportunities, however, can become clouded by apprehensions of scarcity, of running out of money, and the perpetual fear that the financial well will eventually dry up. These thoughts can cast a pall over your entrepreneurial pursuits, stifling innovation and even undermining your confidence in setting fair pricing for your services.

At the heart of embracing abundance is a radical shift in your relationship with money. By acknowledging and confronting the fears and limiting beliefs that fuel Money Dysmorphia, you can embark on a transformative journey that liberates your business from self-imposed constraints.

Shifting Your Perspective

Consider this: the well of money is boundless, and your capacity to generate money is infinite. Bear with me because this may sound a little woo, but it’s absolutely been true, in my experience: The universe doesn't operate on a finite economic plan - it operates on the boundless exchange of value, which we can see represented in nature everywhere. When you offer your products or services and charge the right amount for the right value, you are tapping into the infinite flow of exchange, and you never have to worry about not bringing enough into your business and your life.

Transitioning from scarcity-based thinking to an abundance mindset is an empowering (and sometimes daunting) endeavor. By nurturing a belief that money flows freely and consistently, you unlock the potential to create financial stability and prosperity for yourself and everyone you love. Trusting in the process and realizing that money is an infinite resource available to you when you master the art of value exchange enables you to set realistic pricing, embrace opportunities, and confidently invest in your business's growth.

Picture this: every client interaction, every innovative idea, every partnership - they're all conduits for the flow of value. As you provide value to others, you naturally attract the flow of resources back into your business. Remember, the currency of your business isn't solely monetary; it's also about the value you offer, the impact you create, and the solutions you provide.

In the realm of business, realizing that there is an infinite amount of money to be made is a pivotal breakthrough. By dismantling the constraints of Money Dysmorphia and cultivating an unwavering belief in the abundance of opportunities, you not only empower your business but also empower yourself as a confident and purpose-driven entrepreneur.

If this feels at all too out there for you, I have two book recommendations for you that could be very valuable in your learning on this front. Lynne Twist’s book, “The Soul of Money,” and “Karmic Management” by Christie McNally, Michael Gordon, and Michael Roach.

Dissolve Money Dysmorphia With Help From Your Personal Family Lawyer® Firm

We are dedicated to helping you understand and work with your Money Dysmorphia so you can embrace the abundance mindset. Through our transformative Money Map to Freedom program, we guide you in reshaping your relationship with money, empowering you to confidently set fair prices, make strategic investments, and unlock the boundless potential that awaits your business.

Step into the realm of infinite possibilities - schedule a 15-min call with us today and embark on a journey toward lasting financial abundance and entrepreneurial fulfillment.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Fire client
Business Planning

4 Red Flags That Signal It’s Time to Part With a Bad Client

Dealing with clients who bring more complications than benefits can be a burden on your business, causing undue stress and even a loss of revenue. However, breaking ties with such problematic clients can be a tough decision, especially if your business is still finding its footing or you're strapped for funds.

Nonetheless, there are instances where parting ways with a client is the most prudent course of action. To grow your business and increase efficiency, it's crucial to acknowledge that not every client is an ideal fit for your business. In the worst-case scenarios, you would have been better off never engaging with these clients in the first place. 

If any of your clients are exhibiting these red flags, it may be time to consider ending that client relationship and learning to avoid potential clients that exhibit any of these behaviors.

Consistently Delayed Payments

While the occasional late payment might stem from oversight, repeated instances signal a more serious issue. If late payments become a pattern, it might be time to reassess the client relationship. Imagine if your team received their pay weeks or months late – it could potentially lead to their departure, and rightly so.

To mitigate this concern, consider incorporating specific payment terms into your sales agreements. By outlining your payment schedule, penalties for delayed payments, and potential remedies, you establish clear expectations and set the tone for possible recourse. Requiring upfront payment or a deposit before commencing work is another preventive measure. Always ensure that each client signs a sales agreement with precise payment terms before any work is undertaken.

If you need help crafting a thorough agreement to minimize the risk of late payments, we can help.

Underestimating Your Worth

Valuing your work appropriately is essential for your business's sustainability. Sometimes, a skewed perception of money can lead to undervaluing your efforts. Overcoming this financial misconception is crucial, as it directly impacts your self-worth and your client relationships.

Unresolved money-related fears and beliefs can adversely affect your business and personal life. By acknowledging and addressing these misconceptions, you can project confidence and command the compensation you deserve. Underestimating your worth can not only impact your income but also erode your enthusiasm, quality of work, and overall well-being.

Our firm is adept at helping you cultivate a healthier relationship with money. Through the Money Map to Freedom program, we'll guide you in reclaiming your precious resources and establishing financial freedom, empowering you to demand fair compensation from clients without discomfort.

Scope Creep: Navigating Expanding Expectations

Clients occasionally seek more than initially agreed upon, leading to scope creep. While such instances don't always indicate problem clients, it's essential to manage the situation proactively. Gradual expansion of responsibilities can lead to an unfair imbalance between your clients and strain your relationship with others.

When confronted with work outside the scope of your agreement, address it using a "change order" approach, much like modifications during home remodeling. Request proper compensation for any extra efforts, ensuring fairness to both parties. While it's critical to recognize your clients' evolving needs, it's equally important to maintain equilibrium and prevent an undue and uncompensated burden on your business.

Lack of Boundaries

An additional facet of managing client relationships revolves around the crucial principle of time boundaries. It's not uncommon to encounter clients who consistently encroach upon your time, whether through incessant calls or expecting immediate responses beyond regular business hours. While maintaining open communication is essential, it's equally important for clients to respect your time and understand that your availability has limits.

Clients who disregard these boundaries not only risk overburdening your schedule but also undermining the quality of service they ultimately receive. Just as you wouldn't expect your team to be on call 24/7, clients should recognize the importance of designated business hours and reasonable response times.

If you find yourself consistently grappling with clients who exhibit this behavior, it might be an indication of a broader lack of appreciation for your professional space. Evaluating whether such clients align with your business values and working style is crucial. In some cases, a candid conversation outlining your communication norms and setting realistic expectations can lead to improved understanding.

However, when these discussions yield no change, it might be worth considering whether the client relationship is sustainable in the long run. Remember, fostering a healthy client relationship involves mutual respect and understanding, with each party valuing the other's time and commitments.

Fostering Positive Client Relationships

Though parting ways with problematic clients can be challenging, the long-term benefits outweigh the immediate discomfort. New clients can always be acquired, but the time, energy, and attention wasted on troublesome clients are irretrievable.

As your dedicated Personal Family Lawyer® firm with a business focus, we offer comprehensive support in navigating challenging client dynamics. From crafting meticulous sales agreements to aiding you in redefining your financial relationship with money, our expertise ensures your business's prosperity. Connect with us to initiate a path toward healthier, more productive client relationships.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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