The Encyclopedia of Small English Forms and Agreements

309 Pages·2016·3.85 MB·English

by  Maeda Martha.

The Encyclopedia of Small Business
Forms and Agreements
A Complete Kit of Ready-to-Use Business Checklists,
Worksheets, Forms, Contracts, and Human Resource Documents
By Martha Maeda
THE ENCYCLOPEDIA OF SMALL BUSINESS FORMS AND AGREEMENTS: A COMPLETE KIT OF READY-TO-
USE BUSINESS CHECKLISTS, WORKSHEETS, FORMS, CONTRACTS, AND HUMAN RESOURCE
DOCUMENTS
Copyright © 2011 Atlantic Publishing Group, Inc.
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for permission should be sent to Atlantic Publishing Group, Inc., 1210 SW 23rd Place, Ocala, Florida 34471.
Library of Congress Cataloging-in-Publication Data
Maeda, Martha, 1953-
The encyclopedia of small business forms and agreements : a complete kit of ready-to-use business checklists,
worksheets, forms, contracts, and human resource documents with companion CD-ROM / by Martha Maeda.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-1-60138-248-1 (alk. paper)
ISBN-10: 1-60138-248-0 (alk. paper)
1. Small business--United States--Forms. 2. Small business--Law and legislation--United States--Forms. I. Title.
HF5371.M284 2010
651’.29--dc22
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TABLE OF CONTENTS
Introduction
Chapter 1: Starting a Business
Chapter 2: Buying or Selling a Business
Chapter 3: Setting Up and Running a Corporation
Chapter 4: Contract Basics
Chapter 5: Buying, Selling, and Leasing Real Estate
Chapter 6: Financial Reports, Accounting and Money Management
Chapter 7: Purchasing and Managing Supplies and Inventory
Chapter 8: Human Resources: Hiring and Managing Employees
Chapter 9: Forms, and Checklists for Consultants and Independent Contractors
Chapter 10: Marketing & Public Relations
Conclusion
INTRODUCTION
T
his book contains checklists, worksheets, forms, contracts, human-resource documents,
and sample letters to help you manage every aspect of your small business. You will find
everything you need to plan a business startup, organize your finances, buy or lease real
estate, set up a bookkeeping system, interact with your customers and clients, keep track of
inventory and supplies, create and maintain a project schedule, hire and manage employees, and
deal with setbacks and complications. The documents in this book represent the experience of
thousands of business owners, accountants, attorneys, and consultants who have learned how to
succeed in their fields.
Putting Everything in Writing
Before you go to the grocery store, you do not necessarily have to write down a shopping list; you
can compose a mental list of the ite ms you need, or you can just push your cart along the aisles
and pick up things as they catch your eye. But what happens when you get home and find you
forgot a crucial ingredient for tonight’s dinner, or you get to the cash register and do not have
enough money to pay for everything in your cart? A business agreement does not have to be put in
writing to be legal; it can be a verbal agreement or a relationship that is just understood. But what
do you do when your business partner fails to show up for an important job, or does not hand over
your share of a payment? What happens when a tenant does not pay his rent, a supplier fails to
deliver goods on schedule, or a manufacturer sends you the wrong items? Writing everything
down helps you organize your thoughts, anticipate your expenses, and ensure that everyone
involved in a business transaction clearly understands their roles and responsibilities. Written
contracts and agreements spell out exactly what actions will be taken if one party fails to fulfill its
obligations.
Save time and get organized
Using lists, written procedures, and standardized documents saves time and helps you organize
your business processes effectively. For example, numbered purchase orders, invoices, and
receipts are used in accounting systems to track all of a business’s transactions and make it easy
to look up information quickly. Following a checklist of cash-register procedures ensures that
sales are properly recorded and important security measures are never overlooked. Hundreds of
people can read and follow written instructions without having to be personally taught how to do
a task.
Every business has needs and requirements similar to those of other businesses. You do not need
to “reinvent the wheel” every time you start a new business or implement a new process. Benefit
from the experience of all those who have gone before you by adapting the plans, contracts, and
documents they have already developed and used successfully in their businesses. You have so
much to accomplish that you do not have time to think your way carefully through every
contingency of your new business. Instead, build on someone else’s success strategies by using
standardized checklists, documents, and legal contracts. Then devote your valuable time to
finding new customers and developing your product.
Make it legal
A contract or legal agreement clarifies exactly what is expected of each of the parties to a
business transaction, and what the consequences will be if any party fails to fulfill those
expectations. Each party involved in the agreement knows it can be taken to court if certain
conditions are not met. Legal contracts protect you from harm when something goes wrong. Each
clause in a contract is designed to cover a specific eventuality. For example, a real estate
mortgage contract often includes a clause requiring insurance to be taken out on the property in
case it is damaged in a fire or flood. This protects both the borrower and the lender from losing
money if the property is destroyed. The words in a contract determine who will have to pay if a
project overruns its budget, or if a manufacturer delivers substandard goods.
Manage and control
Written contracts and agreements have an authority of their own. Everyone who signs an
agreement acknowledges that he or she accepts its terms. Anyone who breaks the terms of a
contract knows what the consequences will be. Contracts are an effective method for establishing
and maintaining standards. For example, if you sign an agreement to buy materials of a certain
standard from a manufacturer and the manufacturer fails to meet that standard, you have legal
grounds to return the materials and refuse payment. Employees who sign a code of conduct or an
Internet-use agreement know they can be disciplined or terminated for disregarding it. When such
agreements are regularly enforced, all employees know what is expected of them. An employee
fired for violating such a contract cannot claim unfair termination.
How to Use This Book
The documents in this book are ready-to-use; all you have to do is fill in the blanks or change a
few words to suit your particular business needs. All of the documents can be printed from the
companion CD-ROM, which also contains numerous additional legal forms, sample documents,
and letters, including IRS and other government forms to supplement each section of the book.
The title of each document explains its purpose, and many are accompanied by brief explanations.
Read each document carefully before using it to make sure it is appropriate for your business
needs, and make any necessary changes. Some of the documents in this book are legally binding
contracts and agreements, while others, such as invoices and receipts, are simply official records
of transactions. Consult a lawyer, accountant, or real estate agent before signing any document that
commits you to important legal obligations. Although many simple contracts and transactions do
not require a lawyer’s services, you will save time and money by getting legal advice if your
situation is complicated.
Table of Contents
CHAPTER 1: Starting a Business
E
very entrepreneur knows it is a long journey from the first inspiration for a new business
to its realization as a profitable enterprise. A business cannot succeed without a business
plan, a blueprint detailing exactly how it will operate, how much it will cost to get
started, and what steps you must take to establish it. Checklists and guides help you do the
necessary research, make realistic estimates and calculations, and include all the necessary
elements for success.
The forms, checklists, worksheets, and sample documents in this section will guide you through
the steps of starting a new business or expanding an existing one.
Forms and checklists in this chapter include:
_ Business Evaluation Personality Quiz
_ Questions to Ask About a Franchise
_ Franchisor’s Disclosure Document Checklist
_ Elements of a Business Plan
_ Business Plan and Strategic Plan Worksheet
_ Business Plan Checklist
_ Sample Business Plan
_ Format for Business Proposal
_ Elevator Pitch
_ Estimated Startup Costs Worksheet
_ Startup Expenses Worksheet
_ Estimated Startup Cost Shortfall
_ Creating an Operating Budget Worksheet
_ Budgeting Worksheet
_ Startup Expenses Estimate Worksheet
_ Operating Expenses Worksheet
_ Sample Operating Expenses Worksheet
_ Checklist for Cutting Costs
_ Location Analysis
_ Potential Location Checklist
_ Proposed Location Rating
_ Business Entity Chart
_ Ownership Structure of Business Entities
_ Checklist for Choosing and Registering a Business Name
_ Sample Articles of Organization for a LLC
_ Sample Filing for Articles of Incorporation
_ Fictitious Name (DBA) Form
_ Financial Statement Requirements for Business Entities
_ Worksheet for a Successful Partnership
_ Exit Plan Worksheet
Evaluating Your Business Idea
The first step in turning your business idea into a reality is deciding what form your new business
will take. Are you building on an existing business you are already experienced in, or are you
venturing into an entirely new field? Should you start from scratch, buy into a franchise, or
purchase an established business? This personality quiz will help you evaluate your skills and
aptitudes.
Business Evaluation Personality Quiz
1. I am happiest when I am completely in charge of a project and using my own ideas.
__ Yes __ Sometimes __ No
2. I prefer to have a group of people brainstorm alternatives and then come to a group
consensus to set priorities and make decisions.
__ Yes __ Sometimes __ No
3. I like to have someone else with more experience set my targets and goals, so I can meet or
exceed them.
__ Yes __ Sometimes __ No
4. I am excited about starting from scratch.
__ Yes __ Sometimes __ No
5. I enjoy building teams as long as I am the leader.
__ Yes __ Sometimes __ No
6. I feel uptight if someone asks me a question and I do not immediately know the answer.
__ Yes __ Sometimes __ No