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6. Forms, Documentation, and Disclaimers

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Another way to protect your business interests is to ensure that you document what your business does. Instead of trying to create new forms for your business, it is faster and more efficient to get premade forms that can be used by your business. Having some of your day-to-day activities formally documented is helpful as it allows you to have a written history of what your business did and when it was done.

Documentation may be helpful if you ever need to check the history of a customer order, track a purchase, or document an employee termination. This backup documentation is very useful if you ever have a customer issue that has escalated. For instance, once, we had a customer who was dissatisfied with her service. She claimed that she was unaware of the risks associated with fixing an old, failing computer. Instead of telling someone at the store so that it could be resolved, she paid, left quietly, and took the issue directly to the Better Business Bureau (BBB). Having a strong documentation trail allowed us to settle the problem to everyone’s satisfaction. We were able to provide the BBB with the documents they needed to see that we had in fact notified her of all her risks and issues. We attached her signed check-in form that clearly showed we had outlined the risks associated with repairing a damaged computer like hers. We then worked with the customer to make her happy and to retain her business.

Disclaimers are a good way to protect your business and they can also provide opportunities for additional sales. For instance, at most car dealerships the salesperson will review the warranty paperwork with the customer. At this point, when the limitations of the warranty are being discussed (e.g., only 3 years), the salesperson has a perfect opportunity to offer the customer an extended warranty.

If you don’t already have documents in place, they are easy to find or purchase. Self-Counsel Press publishes Small Business Forms; a kit that contains a CD with the forms typically used by small businesses to complete their day-to-day operations including personnel forms (e.g., employee performance reviews, employment applications), financial forms (e.g., invoices, statements, purchase orders), and even general office forms (e.g., memos, telephone messages). Obtaining a low cost premade package like this saves time that you can better use to grow your business.

Another type of document you will need if you are providing a customer service such as repair work or consulting advice is a standard service contract that can be used with your customers. This contract should include the possible negative outcomes (e.g., damage) that could occur and the limits around your company’s liability. Legal forms can be purchased at your local software vendor or on the Internet. For extra safety have your company’s lawyer review the document before you use it. It may be necessary to draft a customer form for your specific business needs.

19 Ways to Survive in a Tough Economy

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