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Understanding The Value of Contracts

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When most people think of contracts they think of traps, attorneys, lawsuits and other unpleasant thoughts that make most want to avoid the idea of being involved in a contract. The truth is that creating a contract can be the most simplest part of conducting business that any person or business can do, not to mention the most important. Let’s be honest, we are involved in contracts and contractual negotiations daily in our lives whether they be with our families or business related concerns.

The only time when we think negatively of contracts is when we really do not understand what we value out of a situation. The thought of entering into a situation that will not satisfy all parties involved can be the reason why we feel contracts should be used. This is more of a safety precaution or to overt possible risks. Having clarity of what all parties value before, during, and after the contract is written will always minimize negative feelings of having a contractual arrangement.

A contract is not a tool to be used to make one party feel as though they have been used, but a contract should be a tool that says “we have come to a mutual decision and one that will be beneficial for both of us”. As human beings we have become frightened of commitment and what a contract states is that we are truly committed to uphold our end of the deal. Regardless of how anyone sees it, a marriage is a contract, your relationship with your kids can be a contract, and your life with God is a contract. These are commitments that speak to your character when you uphold your end of the deal.

Understand that being a business owner or individual entering into a business decision takes thought and consideration. When considering that next business venture or any decision that is a commitment, take time to step back and think of the relationship that the decision will create. Realize that the agreement that you are committing yourself to can be a long-lasting one and one that you will enjoy as well as provide enjoyment for the party on the other side of the deal.

Contracts and agreements do not have to be death sentences or “I got over on you” scenarios. Creating a binding agreement should be well-thought, reciprocal, and an overall benefit to everyone involved. Create long-lasting relationships that reflect how differences and similarities come together in a contract for success.

Need contract consulting for your sole proprietorship, small business or medium sized business?

Feel free to contact me kevin@mapsadvising.com.

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