What else do you need? [Trading terms series - article #5] To make trading terms actually work for your business - what else do you need? Last week I talked about the "why" and "how" of trading terms, about what to include, and also about what to leave out. Today, in the final article of this series, I'm focusing on what else you need to make trading terms work for your business: * Complementary documents - I touched on this in previous posts. Effective trading terms operate best as part of a holistic package which matches your actual business process. That package often looks something like this: - core trading terms which apply to all typical customers and products. They need to be adequately accepted through a sensible signup process (see article #1 for more details). - quote and invoice forms which link back to the core terms. This ensures the core terms actually get communicated, and that the customer is always able to find them - an important step to reduce disputes. - where you're offering voluntary warranties - clear terms for those. - product terms for specific products which fall outside your business norms. If possible, consider building these product terms as variations to the core trading terms. This is not a hard and fast rule - it's a design choice which I like to assess each time, and discuss with clients. The advantages of this core terms + products terms approach are improved consistency, and easier maintenance of terms over time; the disavantage is a slightly higher risk of process breakdown. - a credit application form. Every customer who gets credit from you (above a fairly low threshold - perhaps $5,000?) should complete a credit application. At a minimum , this will collect the info you need to make a credit decision, and record longer payment terms and a credit limit (or method for setting one). It may also give your business extra rights to manage that credit, and to extra security). - extra security documents (which may be personal guarantees, general or specific security agts, or real estate mortgages depending on the level of credit provided). * A 'deployment champion' within your business - trading terms documents are useless if not used as intended. Someone needs to implement them in your business, then check periodically for consistency and process errors. If that deployment can be integrated with your operational software, this consistently leads to better coverage, more reliable outcomes and reduced cost over time. Please seriously consider this. * Review - if done well, the terms should last for years. But... 3 or 4 years, not 12. Major changes in law, business practice or economic circumstances should make you re-assess them. The aim of this 5-part series on trading terms has been to help business owners get on track when considering trading terms - I hope you've enjoyed it, and found it useful. #tradingterms #commerciallaw #QldLaw
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Someone had to do the tough job at the Salvos Red Shield Appeal launch! https://lnkd.in/g75J8MB5
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This week, I am speaking about 'Managing liability and risk for business owners' at the Australian Plumbing & Gas Conference 2024. I have strong views about this topic - I've seen too many suboptimal outcomes for business owners, over the years. In many cases I have thought: "What could have been done differently, to avoid this situation...?" Well, you can hear my views on this (focusing on terms + credit process) if you're attending. The headings for my slides will illustrate my themes nicely: - Common problems – terms & conditions - How should you approach terms & credit? - Know your customer - Practical stuff for your T&Cs - Common errors & technical problems - Communicating your terms (effectively) - Tools to assist - PPS registration - Accepting other terms – important tips This will be a practical presentation with plenty of opportunity for questions and discussion (and a panel following). I'd say "I'm looking forward to it"... but the truth is I'm a bit nervous about doing it - I'm more used to 'behind the scenes' work. Wish me luck!
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I'm concerned that the ACCC is engaging in a little 'misleading and deceptive' media releasing before Christmas (pun slightly intended) In my opinion, there is just too much 'spin' in their latest (Friday 15th) media release about unfair contract terms in franchise agts. The headline quote from an ACCC Deputy Chair is: “... franchisors are failing to grasp the importance of complying with the unfair contract terms provisions of the ACL. Every franchising agreement we reviewed contained potentially unfair contract terms". The word 'potentially' does a lot of work in that last sentence. Let's put this quote in context - it's based on a report analysing 10 franchise agreements, targeted for review by the ACCC. The report calls them "targeted franchising compliance checks". Despite choosing newer and smaller franchisors, the report concluded that: "We are pleased to report that the documents we assessed were largely compliant with the Franchising Code and we did not identify any systemic issues or concerns under the code." , but then goes on to infer that the ACCC might be inclined to take action on UCTs in the franchise agts anyway. The very headline of the media release conveys the threat: "Franchisors warned to remove unfair contract terms or risk legal action" I don't take issue with the importance of the UCT issue, nor with (some of) the substantive conclusions in the report - it's the tone and (lack of) efficacy of this media release which concerns me. Unfair contract terms (UCTs) are a serious and confronting issue for most businesses at the present time. We've done a lot of work on UCTs across a period of about 9 years - not just recently - and it is difficult, confusing stuff at times. There is a lack of clear case law and a lack of clear guidance about many issues and mature, thoughtful minds will differ on what is and isn't an unfair term. Listing 'potential' UCTs in most B2B contracts will take quite a long time.... In my experience, most franchisors already take their legal responsibilities really seriously and strive to comply with them. This media release (5 working days before Christmas) seems to me to be an unfair and unproductive pressure tactic by the ACCC - a hammer to crack an egg. There are far better targets around for the ACCC to advance its UCT agenda against than Australia's (already highly regulated) franchisors. The report itself (linked from the media release) is more illuminating ... except for the section on termination rights which genuinely baffled me ... and I will say some more about that in upcoming posts. Link to the media release is in the first comment. #unfairterms #franchising
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This week you will face Important things (things which have to get done to achieve things, or avoid consequences). And you will face Urgent things (things which other people want done urgently before🎄) Make sure you remember and act on the difference between Important and Urgent - because it’s probably not humanly possible to do them all.
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Business development as a lawyer has never come naturally to me at all - I still find it challenging and often uncomfortable. What has made it easier, and more manageable, is to see BD as a series of practical skills and activities which can be improved through learning, effort and discipline (much like everything else in legal practice really!) Today, I am sharing some of the key resources and tools which help me - in case they might also help you. (To avoid this post becoming a link-fest, I will include links to the mentioned resources in the first comment.) The first helpful thing is to have the right mindset. You may be naturally good at some things and naturally poorer at others. (Side note: we're not as good at assessing our own skills and aptitudes as we might think). Maintaining a growth mindset - that our minds are 'learning engines' - we are not fixed in place or static; we are adaptable works-in-progress - has been a key aid for me. See the work of Carol Dweck (in the cover image, and linked below). How to feed that learning engine? Try the weekly email from Jay Harrington. It covers different topics, all in the ‘business development for law practices’ theme - it is free every week. Jay seems to be a great fan of Charlie Munger (of Berkshire Hathaway fame) and David Maister (foundational 1990's thinker in professional service firm management), but with modern twists. Though American, Jay's advice is virtually all relevant to Australian lawyers. The other (Australian) source I unreservedly recommend is Sue-Ella Prodonovich. I have heard Sue-Ella present in person (at a fairly tense session covering some difficult topics) and she was fantastic and intensely pragmatic – and again, she writes extremely practical and useful articles, worth fueling your learning engine with. I hope to hear her in person again in 2024! If you want to build your own business development skills in practical ways and / or encourage your staff to do so, then you cannot go wrong with these two sources. Now, a couple of practical tools which help me to manage - I use Buffer and Pipedrive. Buffer is a simple tool which helps with managing LinkedIn (or other social media) - with planning, scheduling, monitoring, re-use and so on. It has a very sensible price - and also, excellent support. Pipedrive is a new tool for me in 2023. It's marketed as 'Sales CRM & Pipeline Management Software'. I'm still learning it, only using a fraction of its capabilities, but it has already helped bring a lot of discipline and strategic thinking to my 'work pipeline management' habits. It's a fairly simple (but functional and elegant) tool. Worth investigating if you think your discipline or strategy around work 'leads' could be improved. To encourage new (or old) lawyers who feel daunted by business development - just break things down into practical chunks, and start doing something. It will get easier (though perhaps never easy) with practice.
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Who doesn’t like a party? We tried to do the first CL 🌲 in style.
We enjoyed our inaugural firm Christmas Party on Friday night at Aviary Terrace Bar then Bos Restaurant - it’s been a challenging but excellent first year, so thanks to Mitchell A., Blake Palmer, Glenda Robertson and other contributors. https://lnkd.in/gsQhsMb5
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I’m pretty terrible at following most of the suggestions in this article. It’s full of wise and valid points, so I recommend it to you! One of the trickiest things to manage when you’re busy is to keep the quality high and consistent for clients. Scheduling rest time so you can retain perspective and creativity is very important for that. I’m determined to be more disciplined about that from now on 🤞🏼- wish me luck!
The typical response to an overwhelming workload is to put in longer hours. Don't do that.
Mmmmm, maybe time for a review of our Terms. Thank you Stephen for putting this together. It’s been really insightful.