10 Must-Read Business Articles for New and Existing Businesses

The Top 7 Legal Documents for Any Startup

Article: The Top 7 Legal Documents for Any Startup

There is so much to do when starting a new business that creating a legal structure and filing the proper documentation with the local government are often put on the back burner. However, establishing proper business formation is something that should be prioritized. In “The Top 7 Legal Documents for Any Startup,” Matt Faustman offers entrepreneurs advice on which legal documents are essential when starting a business. Faustman is the founder and CEO of UpCounsel, and he identifies the following core legal documents as those all businesses should have:

• Articles of incorporation
• Corporate bylaws
• LLC operating agreement
• Non-disclosure agreement
• Employee contracts and offer letters
• Shareholder agreement
• Intellectual property assignment agreement

Faustman's discussion of technology assignment agreements and invention assignment agreements is particularly enlightening for any business owner who has yet to ask their employees and contractors to sign formal agreements. Faustman explains why these documents are important and how they can ensure businesses avoid problems later on.

Top 10 Employee Handbook Updates

Article: Top 10 Employee Handbook Updates

If someone were to ask your employees to go get their employee handbook, some employees would need to search their file cabinets for a few minutes before producing a document they have only read one time. However, an employee handbook should not be a static document that remains locked in a desk drawer. As Steve Bates explains in this article for the Society for Human Resources Management, not updating an employee handbook can have disastrous consequences for an employer who relies on a statement of law that has been modified. Bates recommends businesses update their handbooks once a year with the assistance of legal counsel. The article lists the following 10 company policy areas that should be reviewed and updated:

• Collective Bargaining
• Social Media and Data Policy
• Wages and Payroll
• Reasonable Accommodations
• Retaliation
• State Specific Laws
• Leave Benefits
• Attendance
• Smoking and Marijuana Use
• LGBT Rights

After refreshing the employee handbook and company policy statements, employers should remember to bring their employees up to date about their rights and responsibilities on the job. Bates's article will help you understand how to make your organization bulletproof just by changing the employee handbook from a static document to a dynamic one.

12 Habits of Highly Successful HR Leaders

Article: 12 Habits of Highly Successful HR Leaders

Human resources is one of the most important departments in any business environment. Businesses depend on human resources managers to maintain human resources documents; hire, discipline, and train employees; and keep the business compliant with the law. In Forefront Magazine's “12 Habits of Highly Successful HR Leaders,” John Schierer explains how human resources can not only support the business, but actually drive it. His list of traits and communication pointers illuminates what characteristics a human resources professional should have to excel on the job.

• Schierer recommends that every HR team member be able to answer the question, “how does this company make money?” Knowing the profitability factors which drive the company not only informs HR policymaking, but it also helps employees see HR as more informed.
• Another recommendation is for HR professionals to listen and not interrupt employees who come to HR for guidance. Although HR's job is often to problem-solve, in Schierer's experience, many employees come to HR in order to speak and be heard. Employees may solve their own problems through this process, and it also stops HR from being the villain in every problem that arises.
• Schierer also recommends that HR professionals always examine the spirit and intent of the rules and policies they enforce, rather than approaching their job as traffic cops who enjoy busting employees for breaking the rules.

Schierer's tips and examples will help you screen and hire the best HR team for your business.

A Practical Guide to Writing an Effective Social Media Policy

Article: A Practical Guide to Writing an Effective Social Media Policy

Social media plays an enormous role in the lives of most Americans, and their participation in online activities doesn't end when they go to work. As a business owner, knowing when and how to limit your employees' involvement in social media can be tricky. Should you limit all social media use during working hours? What if your employees check Facebook at work? If an employee discusses your business in a social media post, is he or she violating confidentiality agreements by sharing proprietary information, or will the things he or she shares actually help the business get publicity? These questions pose real problems for many employers.

Brian Honigman's article encourages employers to write social media policies that “reflect the unique values, culture, and ideals of your organization.”

IBM's example is one reason why Honigman cautions employers not to enact a blanket ban on any social media activity, since a prohibition may generate resentment and a backlash among employees. Overly restrictive social media policies also strongly communicate that employees are not be trusted.

On the other hand, Honigman explains that employees still need guidance about using social media. Although a little common sense will prevent many social media snafus, employers have to think through what the limitations should be and then communicate them accordingly. The article features helpful examples from corporate policies like Coca-Cola, which says “when in doubt, do not post.”

Protecting Your Valuable Trade Secrets, Proprietary, and Confidential Information

Article: Protecting Your Valuable Trade Secrets, Proprietary, and Confidential Information

There is no such thing as a business without confidential and proprietary information. Despite this fact, a surprising number of businesses don't even realize they have intellectual property that should be protected. Every business, no matter how small, has trade secrets, confidential information, trademarks, patents, or other processes that are given legal protection under the law. In “Protecting Your Valuable Trade Secrets, Proprietary, and Confidential Information,” lawyer Richard Hurford defines intellectual property so that you can determine which of your company's assets are protectable. He explains how much is at stake for modern businesses and how to use non-compete and non-solicitation agreements to discourage employees from sharing confidential information.

Hurford's discussion is a must-read for employers since he explains which non-compete agreements will be deemed unenforceable by courts and how to create a non-compete agreement that the courts will approve of. Most importantly, Hurford explains that courts require businesses to show they have taken reasonable steps to protect their confidential information. As a result, businesses should immediately take the following minimum steps:

• Give confidentiality, non-disclosure, and non-solicitation agreements to employees, board members, and independent contractors.
• Make sure your employment agreements and contracts include provisions which assign or transfer the rights to intellectual property created by employees to the business.
• Include provisions in the employee handbooks and policies that permit the company to access and evaluate computer hard drives and electronic storage devices given to employees without violating employees' privacy rights.
• Restrict access to confidential information and trade secrets, including making information restricted on the company's IT systems.

Hurford's article is a highly readable and detailed explanation of confidential and proprietary information from an industry expert, and thus a must-read for business owners.

Don’t Hire a Consultant Until You've Vetted Them and Considered These 6 Points

Article: Don't Hire a Consultant Until You've Vetted Them and Considered These 6 Points

When it comes to the world of management consultants, business owners have greatly disparate views. Some businesses don't trust anyone from outside the company to evaluate the business, whereas other companies don't feel comfortable making any move without the advice of their favorite management consultant. So who is right? According to Rob Biederman, neither extreme makes much sense. His article on how and why to hire an independent consultant will help you determine whether a consultant could help your company. If so, Biederman will help define the right kind of consultancy for your needs.

In order to properly vet a consultant, he suggests evaluating the person using these six areas:

• Experience
• Work samples
• References
• Work habits
• Flexibility
• Price

Once you've considered Biederman's thoughts on consultancy services, consider how consulting services agreements can help define the scope of the project the consultant will work on, as well as the timelines, payment terms, and confidentiality covenants you should expect from your consultant.

How to Choose the Best Name For Your Business

Article: How to Choose the Best Name For Your Business

Naming your business is one of the most difficult things you will do. Some people spend too much time seeking outside opinions, while others shoot from the hip without thinking through the consequences of picking a certain name. In this article, Josh Spiro gives you branding advice that will put your mind at ease. What's in a name? Plenty. For starters, it helps businesses fit in or stand out. As Spiro explains, the name sets the stage for a series of other important decisions, such as:

• finding a domain name that will explain your brand and provide rich SEO opportunities;
• rebranding or shifting into a new area of business; and
• protecting the trademark value of the name you pick.

Spiro provides a succinct explanation of the different kinds of trademark protections, including the five categories of trademark strength the U.S. Patent and Trademark Office considers when evaluating your proposed marks.

Now Is the Time to Think About Your Small Business Succession Plan

Article: Now Is the Time to Think About Your Small-Business Succession Plan

Benjamin Franklin once famously wrote, “Nothing is certain but death and taxes.” As Stephen Sheinbaum explains, more than 50 percent of all U.S. small business owners are over the age of 50, which means that 28 million businesses should start considering their succession plans. Unfortunately, business owners rarely think about succession plans, even though up to 78 percent of people hope to sell their businesses to fund their retirement. Of those who want to sell, fewer than 30 percent have a written succession plan.

Sheinbaum explains what a succession plan is and what questions a business owner should ask him or herself about the future.

• Will the company remain in the family?
• What if no one in the family wants to take over the business?
• Would you sell to a group of employees?
• Would current personnel remain with the company?
• What happens in the event of an unexpected death?

Sheinbaum gives tips about each of these issues, including advice on loan agreements, purchase agreements, and estate planning, as well as how to get ready for a smooth transition to the next phase of life.

All You Ever Need to Know About Purchase Orders

Article: All You Ever Need to Know About Purchase Orders

Paperwork can be an annoying part of running a business, but as you already know, spending time completing paperwork can set you up for success. Kenneth Loi starts his article by defining the basics every person needs to know about the function of a purchase order.

• Purchase orders, which are also called purchase agreements or bills of sale, are created by a buyer and given to a seller.
• Invoices are prepared by the seller, usually once payment has been received.

A purchase order becomes a legally binding contract. Although some companies routinely forgo purchase orders because they seem like a hassle or due to a preexisting relationship with a vendor, communication challenges arise when the paperwork lacks the specificity required of a bill of sale. Loi explains how some companies can benefit from using a purchase order system and procurement software to integrate requisitions, create budgets, propose volume discounts, and more.

Five Clauses Every Partnership Agreement Needs

Article: Five Clauses Every Partnership Agreement Needs

A partnership agreement is a document that defines the rights and responsibilities of a multi-partner LLC. Corporations use bylaws or operating agreements for the same purpose: to ensure that each person knows their roles in running the day-to-day operations of the business. The agreement also explains what happens legally in the event that the partnership dissolves or one partner passes away.

Amanda Neville has some advice for businesses that are writing their partnership agreements. In her article, “Five Clauses Every Partnership Agreement Needs,” she asks a lawyer for the top three clauses that must be addressed in a partnership agreement.

Attorney Megan Eiss-Proctor and Neville identified five areas they recommend every partnership agreement should address:

• Decision-making – ensures that everyone agrees on how decisions get made
• Capital contributions – explains what will happen when the business needs more funds
• Salaries/distributions – determines when partners can take money from the business and how the business will grow
• Death/disability – describes the succession plan in the event that a partner dies or becomes legally incapacitated
• Dissolution – plans for the scenario in which the partnership decides to dissolve because one partner no longer wants to be involved

Armed with their recommendations, you can draft excellent partnership agreements that facilitate communication.

Conclusion

Think of the Internet as a giant library, with up-to-the-minute information you can find on a wealth of subjects involving your business. Whether you are in the middle of your first start-up or you are a seasoned business owner, all of these articles have valuable lessons and instruction.

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