Are you looking for strategies which lead to growing your business out of the pandemic? What new channels of distribution will you open up? How will you expand your sales and marketing efforts? What can be done to reduce your costs and improve the efficiency with which you do business? How will you get more from each employee on the payroll? Many business owners and corporate managers are tasked with these questions at this time of year, and in some cases the answers are well hidden.
One of the first place to look for ideas on how to grow your San Diego business is the contracts between your company and its suppliers, customers and employees. Business contracts guide every transaction, every relationship. A well drafted business contract should clearly establish the roles of the parties, performance expectations, and time frames for accomplishment. Carefully crafted contracts ensure that potential challenges are anticipated and addressed, and communication between the parties is clear and open. This ensures that when a business partner begins to encounter an issue, they raise it quickly so that all parties can work together to make the best of the situation. After decades of serving San Diego business owners and managers, here is a contract pro tip:
Tie compensation to performance, and increase compensation for increased performance.
Another idea for growing your business out of the pandemic if you want something delivered by a specific date, negotiate a tighter price, and provide an incentive for delivering on time and a higher incentive for delivering early (or perhaps, just in time). Employment, supply and purchase contracts should provide measurable performance metrics, and achievement of these goals should be directly tied to increased compensation or benefits. This doesn’t have to impact payroll, it can relate to additional 401k contribution, additional leave or even leaving early on Fridays.
Improving contract performance from your suppliers, customers and employees helps you with growing your business out of the pandemic by reducing litigation and collections and increasing performance and profitability. We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
