In this episode of the Podcast Trapper, I discuss the importance of contracts and legal teams in protecting your business.

As I grow as a business owner, I realize the need to have the right tools in my arsenal to protect myself, my team, and my assets. I'll discuss some key contracts I have in place, such as client work contracts, and why they're important.  

If you're an independent creator or looking to turn your passion for podcasting into a business, this episode is for you.

So, grab a pen and paper, and let's dive in!

Why are contracts important? 

I could go on and on (and on) about this. I am so passionate about this topic that I like to say, “the most important person on your team is a lawyer.” Pay that retainer fee and get your contracts in place early on in your business - because there are just some people who love to play the “I’m calling a lawyer” card. I see people waiting until they have a dire emergency to call a lawyer and try to get contracts put in place, and it’s horrible to watch. Don’t be that person.

I wish we could avoid legal trouble forever, but it comes up. Mo’ money mo’ problems, and the higher you scale your business, the higher the likelihood of someone taking you to task. But even early on, someone might think you don’t have the resources to fight them, and take advantage of you.

You’re smarter than that, so let’s get you and your business safe and protected! Here are some contracts you’ll need…

Contracts for your clients

This one is obvious: You need contracts for your clients! Clients are people, and people can be unpredictable. Protect yourself.

When I decided to launch Adode Media, I had a lawyer put together a set of contracts for our clients.

The most important things in your client contract are your payment terms and requirements, and what happens if they don’t pay you. This is the most serious and essential thing - because if people don’t pay you, you can’t pay your team and pay your bills!

 

Another thing you’re going to want the lawyer to include in your contract is a scope of work. You’re going to want to lay out expectations - what is included and what is not, turnaround times, communication methods, and what happens if they break something. People often let these things slip. Sure, you casually discussed when the project would be done - but did you put it in legal terms and have them sign it?

You also want to ensure that your clients may not poach your team. You don’t want your very own hard-won clients taking your team members away and giving them offers while they’re working for you. You’re trying to build a business; You’re not a recruitment agency!

Occasionally you might get pushback when you ask clients to sign your contracts. Please refer to my recent episode on handling difficult clients - you’re gonna want to listen to this one! It might save you thousands of dollars in legal fees or many hours of frustration. You’re welcome. 

Contracts for your team

Here at Adode Media, 95% of our team is comprised of independent contractors. We have specific contracts in place for them so that they know what is expected of them, and everybody gets what they need.

In our team contracts, we have turnaround time expectations, pay expectations and schedules, and what happens if we go our separate ways. This is a great way to communicate boundaries to contractors and work harmoniously with them in-person or virtually!

In our contract, we have limits to how these contractors can work in competition with us at Adode. We outline that they may not work with other agencies in the same way unless previously agreed upon. We also have a clause that states that they may not poach our clients away from us.  

Contracts for your physical space

We have a commercial lease on a property for Adode Media Studios, but that may not be the same for you. If you do have a brick and mortar, of course be sure to read all of the legal terms of your property agreement.

In the future, I’ll be doing an episode about the benefits versus challenges of having a brick and mortar business. Stay tuned for that one! 

Insurance is your business’s best friend!

Last thing: Insurance is your friend. I said it!

I have insurance on all sorts of things here at the studio. I have insurance that covers us if Matthew breaks his leg moving ladders while working on set. (Which would never happen because Matthew is so careful. Thanks Matthew!)

Get insurance on your employees to cover injury risk or damages. Cover your equipment and any vehicles you’re using.

Please also cover any vendors you often work with. If it’s more than once or twice, get them covered! This monthly fee is worth it if something goes awry.

Stay safe out there…

The safety of your business is in your control. Get those contracts ready and make sure everybody signs it. Your company will survive and thrive for many years thanks to your quick thinking.

That’s all for today’s episode!

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