Modern Business Magazine January 2016 | Page 38

MODERN BUSINESS How to protect your business from fraudsters By Alan Manly I f you had to spend a week in a court or a casino, which do you think would do your business more harm? The answer is both, because both houses win in the end. The ultimate goal for a small business operator is to make money for your enterprise – and not the legal profession. There’s no foolproof way of protecting yourself from sharks and charlatans, but getting things down in writing is a good start and an even better deterrent. In 2002, my business partners and I made the fatal mistake of not doing all the paperwork and asserting our rights when we entered into a deal with a consultant. Had we done so, the crook would have run a mile. After 38 ModernBusiness January 2016 ten years of pure hell soldiering through the Australian courts, I can’t stress enough the importance of clear written agreements. Don’t be afraid of contracts A contract is simply a big list that details what the job is and what you expect. The best contracts are in plain English and are watertight (they can be both). Contracts apply to your customers: make sure they have in writing exactly why you’re taking their money. They apply to your suppliers: when are you going to pay them? When are they going to deliver? They apply to your business partners: they may be trusted, good mates, but we all need to know our roles and responsibilities. And they apply to your staff: it’s not easy telling someone you want something done your way. It’s confronting. It’s demanding. But people like having clear guidelines on what’s expected of them. And they’ll remember those guidelines better if they’ve read them as part of the ‘idiot’s guide’ to your business – the ledger available to all that contains the boring (but essential) stuff. Keep up with the tech Technology is your friend. It’s not meant to befuddle. It’s not meant to irritate. Its whole purpose is to make your business easier, faster, more successful and more