Do This 5-minute Legal Business Audit before 2024

Disclaimer: This article does not constitute legal advice or form an attorney-client relationship. This article is general in nature and for educational purposes only. If you need legal advice, please seek an attorney.

PERFECT TIMING

The holiday season is right around the corner which also signifies the end of yet another business year.

Most business owners are wrapping up 2023 with some auditing, pruning and fine-tuning for 2024. And if you’re one of those business owners, your legal affairs should be part of this process.

if it’s not, here is a 5-min (or less) legal business audit to assess your legal affairs when it comes to contracts and relationships.

BUT WAIT.

If you’re reading this, I imagine you’re interested in doing this audit. That means you’re an action-oriented business owner who doesn’t like to waste time.

If I’m right, take a few seconds to grab a pen and paper before you continue reading. Alright, ready?

1. LIST EACH BUSINESS RELATIONSHIP YOU HAVE

I ALWAYS say that contracts are the foundation of each of our relationships. They dictate how we move and work with the other person(s) under certain conditions. That means every business relationship should have a contract attached to it. Here are some common people you have business relationships with:

• Clients (of course)
• Business partners
• Volunteers and interns
• Contractors and employees
• Customers of physical products
• Joint ventures and collaborators
• Customers of digital products and courses
• Members of your memberships and communities

2. MAKE NOTE OF THE RELATIONSHIPS YOU HAVE CONTRACTS FOR

Highlight it, put a check next to it, give yourself a star, etc.

3. PAT YOURSELF ON THE BACK ????????????

We’ll stop right here for some praise. It’s not always clear when and whether you really need a contract. So even if it’s not the best contract or you have some doubts about what’s in it, you at least have the business acumen to have one in place. That’s worthy of applause.

4. NOTE THE RELATIONSHIPS YOU DON'T HAVE CONTRACTS FOR

Highlight it, put a check next to it, give yourself a star, etc.

Also take note of how looking at this list make you feel? Proud? Concerned? Relieved? A sense of clarity? This is important.

5. MAKE A PLAN TO FIX NUMBER 4

I can continue to reiterate how important contracts are to our business relationships and therefore the trajectory and longevity of our business but I do plenty of that in my content.

This simple activity will help you see (1) where you're protected and (2) where you need to get protected.

Once you have that, you’re able to make a plan about how to fix this.

Set a schedule when to get your contracts reviewed or completed.

Consider when you’re onboarding new clients.

Align it with your budget.

And if you’re really stuck on where to start, talk to an attorney to get the clarity you need.

Then, go get it done.

Drop a ???in the comments if you completed the 5-min audit.

I’m Liku, a CA licensed business attorney and founder of Anasa Law Firm where I worked with consultants, coaches and experts to help them establish a solid legal foundation for business with contracts curated to their needs, trademarks, and IP strategy to create leverage for the longevity of their business.

I’m also the founder of Precedent. Precedent offers Legal Suites with curated, premium contract templates and strategic legal resources for coaches, consultants, speakers, strategists and experts to have their legal affairs in order. We’re launch our Legal Suites one by one before the end of the year. Get on the Precedent List to hear about what’s coming next.