Author: dkklaw

Running a business without written agreements puts you and your clients at risk for misunderstandings, missed payments, and legal disputes. It’s especially risky in today’s landscape, where chargebacks (where clients dispute charges through their credit card company) can result in the loss of money even if your policy is “no refunds.” Without a written agreement, you’ll likely be forced to refund payments—regardless of your stated policies.

The truth is, contracts, or as I like to call them, business agreements, don’t have to be complicated, written in legalese, or span 20 pages to be enforceable. What they need to be is yours—clear, written in simple language, customized to your needs, and signed by both parties. When I say don’t “copy/paste,” I mean just that. Yes, you can follow templates, but don’t insert language you don’t understand just because it looks professional.  

*** Required disclaimer: This is not legal advice, meant for educational purposes only, if you have a contract matter- please discuss with an attorney***

Okay, now on to our discussion. 

Here’s what your agreements should include:

1. Be Clear and Keep It Simple

Nobody likes legalese—trust me, nobody. Skip the formal jargon. If the agreement is for six months, say that directly. If there are four monthly payments, spell that out. People want clarity, and your agreement doesn’t need to be fancy to be enforceable. In fact, you can have a legally binding agreement on a napkin (there’s a famous case about this!). But, for professionalism’s sake, keep it concise and clear.

2. Use the QTIPS Framework

To ensure all bases are covered, use the QTIPS framework to guide you in writing your agreements:

  • Q: Quantity (6 sessions, 2 products, etc.)

  • T: Time of Performance (15 days, 6 months, etc.)

  • I: Identity of the Parties (Who’s involved? You and your client? Identify them!)

  • P: Price (What is the cost of the services/products?)

  • S: Subject Matter (What are they buying? Coaching? Products? Services?)

With this in place, there’s little room for confusion. For example: “This agreement between Me and You is for six 30-minute life coaching sessions over six weeks for $350.” All terms are clearly laid out.

3. Spell Out Your terms

This is a common area where business owners often leave gaps that later create headaches. If you have a no-refund term, write it down. If there are time restrictions for rescheduling (e.g., within 48 hours), state that upfront. Similarly, if you require deposits, payment in full before certain services, or have any other terms, include them in your agreement.

It’s far better to have customers review your contract terms before purchasing, rather than dealing with disputes later. Trust me, it’s less stressful to turn someone down upfront than to face a chargeback down the line.  And without getting too legally for you, we often treat policies and contract terms as different. 

Generally, we describe policies as applying to everyone equally in your business, regardless of the products or services they contract for.  “Our policy is to require 48 hours’ notice to change an appointment.” But a contract is between you and the other party specifically (QTIPS). You can negotiate a term. “I’m requesting the option to provide 24 hours’ notice to you due to the nature of my business.”  That term can be negotiated in an agreement between the two of you. 

So, if you are relying on your websites’ policies to fight a chargeback or otherwise prevent a refund, and it is not a term in the contract, there might be some stickiness with certain payment platforms or credit card issuers.  Please check with an attorney if you need guidance in this area. Us lawyers had weeks and weeks and weeks and weeks of law school and legal cases to read (I know, I’m exaggerating, or am I?) on the exciting world of contract terms. Exploring the exotic world of, “what terms are included in this scenario? That one? Is that an Oxford comma?”

4. Get Any Changes in Writing

Changes will happen. Whether it’s a change of schedule or an amendment to services, always get the changes in writing. Even something informal like, “We’ve agreed to change the dates for yoga sessions” should be clearly documented.

At a MINIMUM send an email documenting the changes to the agreement. You can send an, “I’m just following up our phone conversation with this email to ensure we have everything clearly documented……”  At the end of the email., “If you see something I left out or need to change, please hit reply and let me know.  It was great speaking with you earlier today.” Please do this as you get off the phone- not two days later. If you know that you will not get to it right away, have excellent notes. 

Even better? Send over the changes in a separate document, and you both sign.  Create a word document, send it to the other side, once it’s absolutely captured the changes, make a .PDF, send for signature or e-sign. As much as possible, keep everything signed and dated to avoid confusion.  Don’t rely on memory or scribbles on your notepad—put it in a formal writing!

5. Be Prepared to Enforce the Agreement

This part of business isn’t easy, but it’s necessary. You have to be prepared to enforce your agreements if the need arises. In my own business, I allow clients to pause services for a month or two if life happens—but we don’t just “cancel” agreements because life got in the way. We finish what we agreed to. My livelihood depends on it, and your business should be treated with the same respect.

You may never need to enforce an agreement, but if it comes to that, be firm. Ensure your agreements are followed and recognized.

6. Get Professional Legal Review for Complex Agreements

For more complex agreements, like buying or selling a business, purchasing or leasing equipment, or drafting partnership agreements, always consult an attorney. These types of agreements often involve significant risks, and it’s essential to get them right from the start.

If you can’t afford a full-time attorney or don’t want to hire someone long-term, there’s an excellent online resource called Contracts Counsel. This platform allows you to hire attorneys on a project basis to review or draft legal agreements tailored to your specific needs. It’s an affordable way to ensure your legal documents are in top shape.

A Final Note

While hiring an attorney may seem like an extra step, it’s an investment in the long-term stability and success of your business. Having a clear, legally binding agreement not only protects you but also gives your clients peace of mind, knowing that both parties are aligned in terms of expectations. Don’t let a misunderstanding or poorly crafted contract harm your business—take control of your agreements and protect your interests.

For California Business Owners

If you’re a small business owner in California and need help reviewing or drafting your contracts, I’m here to help. Reach out for a consultation, and we’ll ensure your agreements are legally sound and protect your business.

In the wake of the pandemic, many businesses had to pivot, and for some, the decision to close their doors can feel like a failure. We’re conditioned to think that shutting down a business is a sign of defeat, but that’s simply not the case. Closing a business can be a power move—one that allows you to cash out of something you’ve built but that no longer serves you or your goals.

I’ve been there myself. As a serial entrepreneur, I’ve voluntarily closed businesses that were no longer in alignment with my family’s needs or my personal vision. It’s a decision many entrepreneurs face, and while it can be difficult, it’s often the smartest choice in today’s fast-changing economy.

Why Closing Can Be the Smartest Move You Make

Today’s economy looks vastly different from even just a few years ago. The pandemic changed how we do business—what we need, how we operate, and how we connect with customers. And while many businesses are thriving post-pandemic, others have struggled to adapt. Smart entrepreneurs know when to walk away and realize that closing is a way to preserve energy, financial resources, and personal well-being. Holding on for the sake of obligation or emotion can quickly lead to financial distress, burnout, and unmanageable stress.

Here are a few instances when closing a business can truly be a power move:

1. The Market Changed, But You Don’t Want To

Back in 2018, I closed my business, At the Ready Publications, LLC, which published “The Online Magazine for First Responders.” Initially, the market for niche online publications for first responders was strong, with a unique position as a free, digital magazine targeting rural areas. But over time, larger competitors entered the space with more robust offerings, bigger subscriber lists, and stronger sponsorships.

In 2019, two of the biggest players in the industry decided to go fully digital, and it became clear that competing for attention in this crowded, high-resource space wasn’t the right move for us.

So, we closed up shop, cashed out, and dissolved the company—without regret. Recognizing that the market had shifted and that we no longer wanted to compete in that arena was an empowering decision.

2. Your Client’s Needs Changed and Your Business Has Run Its Course

When a business is solving a problem, it can thrive for years. But what happens when the problem is solved or when customer needs change? One of my ventures, Dragon Slayer Tutors, supported law students with the unique challenge of preparing for the “Baby Bar” exam in California. My niche was law students, particularly working adults with families, navigating the challenges of law school.

In 2020, however, my alma mater’s accreditation changed, and the state bar removed the requirement for students to pass the Baby Bar. As a result, my business model became obsolete almost overnight. Additionally, many law schools started offering fully accredited online law programs, so the landscape on online legal education changed significantly, and many law programs offered remote tutoring and study opportunities. 

Rather than fighting to keep it alive, I recognized that my services were no longer needed by the market, and I stepped away. Instead of feeling bad about it, I was thrilled that my clients no longer needed this particular service. Letting go was a smart decision, not a failure.

3. The Business No Longer Serves You

As a business owner, you are the master and commander of your company. You decide what your business looks like, who it serves, and how it operates. But what happens when the business no longer aligns with your lifestyle, goals, or passions?

I’ve seen many business owners, including a boutique owner and a restaurateur, close their businesses simply because they weren’t having fun anymore. Maybe they’ve outgrown their original vision, or the financials have changed, making the venture no longer profitable.

In some cases, it’s a desire to regain work-life balance—perhaps taking a step back to focus on family or stability, such as returning to a traditional job for health benefits. This can feel difficult, especially in a culture that promotes relentless hustle. But closing a business to align with your personal goals is a power move.

4. Your Business Evolved Into Something Else

Businesses, like people, are meant to grow and evolve. And sometimes, that means closing down one venture to give way to the next.

In my own business, I’ve evolved from solo law practice to a 2-attorney firm practice, now back to solo practice and have refined my areas of focus over the last ten years. I no longer practice as much administrative law, mostly small business.  While it feels like a significant shift, it’s not a failure—it’s an evolution. 

This is something I see regularly with other entrepreneurs as well. As the markets change, we need to change. Law professionals change areas of practice.  Caterers offering a takeout meal service every week.  A previous career coach becoming an HR Consultant. A jewelry designer adding on a brand management service for other designers. Instead of seeing these evolutions as failures or “closures,” let’s start normalizing them as growth.

Changing the Narrative: Closing Isn’t Failing, It’s Evolving

In today’s economy, where so much is in flux, understanding when to pivot, close, or evolve your business is more important than ever. It’s time to embrace the idea that closing a business doesn’t signify failure—it can be an empowered decision that positions you for the next chapter of success.

So, let’s normalize closing a business as a power move. Rather than seeing these transitions as negative, we should celebrate them as evidence of adaptability and growth. As entrepreneurs, we don’t have to cling to the past; we can create the future.

There’s a lot of buzz online about forming a Limited Liability Company (LLC) when starting a business—but before you dive in, it’s important to know: not everyone needs to rush into creating one.

Yes, an LLC can offer protection by separating your personal assets from your business liabilities. But forming one is more than just filling out paperwork—it comes with ongoing responsibilities, costs, and some legal realities that many business owners aren’t fully aware of.

Here’s what you need to know before you decide if an LLC is right for you:

1. You’re Creating a New Legal Entity

When you form an LLC, you’re establishing a brand-new legal “person” in the eyes of the law. You (and any business partners) become “members,” and the LLC becomes its own entity—typically a citizen of the state where it’s formed.

Even if you’re a solo entrepreneur, the LLC is not you. It needs to be treated accordingly. That means:

  • Filing renewals or reports annually (rules vary by state)

  • Getting a separate EIN (Employer Identification Number)

  • Opening dedicated business bank accounts

  • Keeping your business and personal finances completely separate

This isn’t optional. It’s the foundation of the legal protections an LLC offers.

2. Business Finances Must Be Kept Separate

This is where many business owners slip up. The LLC structure can protect your personal assets—but only if you treat the business like a separate entity in practice, not just on paper.

That means:

  • Paying yourself properly, via paycheck or owner’s draw

  • Avoiding using the business debit card for personal expenses (ever)

  • Documenting transactions clearly and maintaining clean records

If you mix personal and business finances, you risk “piercing the corporate veil,” meaning a court could disregard your LLC and hold you personally liable. In short: if you don’t treat the LLC as separate, neither will the law.

3. Tax Benefits Aren’t Always Immediate

LLCs can offer potential tax benefits—but these depend on how the entity is structured and how much revenue the business generates.

For example, electing to have your LLC taxed as an S-Corp may reduce self-employment taxes once your profits hit a certain threshold. But if your business isn’t generating significant income yet, the difference may be minimal.

Talk to a tax professional before choosing a structure—what works for one business may not make sense for yours.

Understand the Benefits and the Costs

Online platforms make LLC formation seem quick and easy—which it can be. But they often don’t mention the hidden costs of maintenance and compliance.

In some states, LLC renewals and franchise taxes are expensive. One of my clients, for example, pays $800 annually just to keep her LLC active.

Before forming an LLC, ask yourself:

  • What assets am I protecting?

  • What are my state’s annual fees and reporting requirements?

  • At my current income level, are there any real tax advantages?

Final Thoughts

Forming an LLC can be a smart move—but it’s not the only path to legitimacy or success in business. Make sure you understand the responsibilities and the financial impact before moving forward.

Talk to a tax professional or legal advisor who understands your business. And don’t be afraid to start as a sole proprietor while you build. There’s nothing wrong with laying a solid foundation first.

One of the most common question people search online related to contract negotiations on Answer the Public is, “Can you negotiate a contract after signing?” Since that is such a frequently researched topic on the internet, I am going to assume that there is probably quite a bit of buyer’s remorse out there in the world.  And that people are getting into agreements that they end up not feeling good about performing or completing. Or the other party isn’t performing and there’s a risk of breach.

A Little Contract Law Background

Before we talk about potentially changing a contract after it is signed, let’s get a quick (legal but not legal advice) background about contracts.  All contracts must contain a few “elements” or parts to be legally “enforceable.”  These are “mutual assent,” “consideration,” and “lack of defenses.”  In a nutshell, a legal contract needs two or more parties who are legally able to enter into a contract (not a minor, for example) who commit to and agree on all of the essential terms (like price), both sides are giving something in exchange they do not legally have to (like money for goods), and there isn’t any circumstance that would prevent the contract from being enforceable, like fraud.

If these are all present at the time you sign, or shake, or exchange hugs, the court would likely find a legally enforceable contract. Depending on the jurisdiction (you know a lawyer cannot write an article without the word “depends” or some form of it) verbal contracts are just as enforceable as written ones. So, for the purposes of our discussion here, we are going to start from the presumption that the contract you want to change is a legal contract and that it is fully executable and enforceable.

Changing Contract Terms through Modification

To modify a contract is to just change some terms.  In most written agreements, there will be a statement that “any changes must be in writing and signed by all parties.”  That’s a modification.  The biggest thing about a modification is that both sides agree to the change or changes.  Negotiating changes can be for one thing or for multiple things.  And in some instances, new “consideration” may be required (such as more money) to make the modification legally enforceable. But I suspect if people thought they could get the other side to agree to a change in terms, they might not be researching “Can you negotiate a contract after signing?” on the internet.

Reformation and Recission

There are some legal remedies available after contracts are signed. These sometimes need to be sought in court.  The first is called, “reformation” which is where the contract is rewritten to match the “intent” of the parties or to correct what we might call an “ambiguity.” You and the other party agree to buy and sell each other, “citrus fruit.” You intended to sell limes, he intended to buy lemons but you both agree that the contract was for “limons” (the hybrid), so the contract is rewritten or clarified so that the written agreement reflects the actual intent of the parties. 

A recission is where we walk away from the contract entirely and pretend it never existed. Taking the same example above but this time you cannot agree on the citrus fruit, so the contract is “withdrawn” as if it never existed. This is because you intended limes, he intended lemons, you never agree, so there is no legally enforceable intent.

There are a few legal requirements around the use of reformation and recission, and if you were either the lemon or the lime person in this short example, please consult with an attorney to look at your options.

Should You Even Try to Change the Agreement?

When you are looking to change the terms of an agreement once it has been executed, negotiation, if possible, often results in the best outcome for everyone.  In the current economic climate, I have helped numerous businesses rework a contract so both sides benefit.  Maybe someone needs a longer payment plan or a different delivery date. When you are asking for a sit down to negotiate new terms, be clear about what you need and why.

There is also a percentage of us who might realize the contract we signed is flawed, but we aren’t going to try and change it.  We’re the ones who will just, “suck it up” and not make a noise about it. Those of us who will not try to change “what it is” may do so because on balance, the change we would ask for does not actually make that much of a difference in the outcome. Or maybe there is a long-standing business relationship. Or hope for future business.

How did We Even Get Here?

Finally, I want to talk a little bit about how we get into these agreements in the first place.  Many times, we get caught up with emotions or hope for an outcome; either can prevent us from reading closely the terms of an agreement. Even if we are engaged in the dryest and least emotional transactions, our trust in others can sometimes cause us to enter into an agreement that, well, we’re not happy with. This can happen when the parties to an agreement assume that what was discussed and agreed to in person or on the phone is memorialized properly in the contract writing.  That is not always the case.

Why do I point these scenarios out? Because we’ve all gotten into agreements at one time or another that weren’t exactly what we expected or wanted. There is sometimes some shame around terms we agreed to that maybe we shouldn’t have, and sometimes we may feel stuck with a contract that doesn’t really serve us or is just outright not delivering the promise of the agreement.  

It’s a good idea to have legal support and advice when you are navigating contracts for your life and business. If you have a contract agreement that isn’t serving you or your business, and you want to look at some type of renegotiation after signing, consider hiring an attorney to help you negotiate, draft and review any changes.

**Photo by energepic.com**

Why I’m Sharing This Story

This blog post is deeply personal—it was written by my husband, Mike, and shares the events that led to the end of our first business. That chapter of our lives shaped how I approach business law and emergency planning today. I invite you to read it not just as a cautionary tale, but as a reminder of what really matters when you’re building a business.

We Lived the Workaholic Entrepreneur Lifestyle—But Never Will Again
By Mike Kennedy

In April of 2011, Dawn and I decided to risk it all and start UNEQ Consulting. I had spent the previous 14 years working at the Army’s Maneuver Battle Lab as an Experimentation Manager in the Unmanned Systems Team. My team and I conducted experiments with small unmanned aircraft systems (drones) and unmanned ground systems. I loved my job, was good at it, and had earned a great reputation in the unmanned systems community.

But every day I still got up and went to work at a government agency. Bureaucratic BS prevails at all government agencies, and that was the part that troubled me. For months, I had a nagging feeling that I was faced with a choice: succumb to the bureaucracy and stay safe, or resign and do something different.

I chose different. I closed my 401k, sold all my stock options, and we launched UNEQ Consulting. Dawn agreed to keep working with the Army for a while longer.

We considered renting office space but ultimately decided to work from home. We set up downstairs offices and called it the world headquarters of UNEQ Consulting. It was fun in the beginning—I could work in my pajamas and never had to drive to the office. Our first year, we took a loss. But our second year? We made over $200,000.

The problem with working from home is you’re always at work. Soon, when the dogs got me up in the middle of the night, I would start working. From 2 or 3 a.m. until 8 or 9 a.m., I was at my desk. I’d take a short nap, then get right back at it.

But most of that work? Just busy work. I was constantly chasing clients. We had contracts with Georgia Tech Research Institute, DARPA, and several companies developing unmanned tech for the Armed Forces and first responders. We were making great money. But I was working 16–18 hours a day and spending nearly zero quality time with Dawn and the kids still at home.

It got worse when Dawn’s contract ended and she joined the company full-time, running operations. Her contributions were invaluable, but I had become an obsessed workaholic jerk. And obsessed workaholic jerks? They manufacture fights over nothing. That was me. And fight we did.

What’s worse than being that guy? Knowing you are and not caring. I kept telling myself it would all be worth it once we were making millions. Then the arguments wouldn’t matter.

In our third year, we were on track to make $375,000. And then, the best thing that ever happened to me… happened.

On Friday, November 1, 2013, I planned to spend the day with my two oldest sons at our training site prepping for an event with first responders. We stopped at a tire shop for Patrick’s car, and then Kevin and I went on ahead.

A few hours into setup, I climbed a ladder to about 18 feet to hang something on a light post.

I fell.

Eighteen feet. Landed on my head.

And in that one second, UNEQ Consulting died.

So did the obsessed workaholic jerk.

I didn’t die. But I suffered four skull fractures, a severed VIII Cranial Nerve, diffuse brain bleeding, and a catastrophic Traumatic Brain Injury. I spent the next 2.5 months in the hospital learning how to walk again.

In that one second, the business was gone. And I was gone too—the version of me that had taken over. It would take years to realize it, but that fall saved our marriage. We were forced to rebuild everything, starting with my health and our family.

Looking back now, over eleven years later, it’s clear: the accident was a gift.

UNEQ might have made millions. But more likely, Mike and Dawn would have divorced. And the obsessed workaholic jerk I was would be alone.

That, my friends, is not worth it.

What I Hope You Take Away

1. If you’re working 16–18-hour days and not spending quality time with the people you love—you are a workaholic. Stop. It is not worth it.

2. If work is all you think about and you’re missing your life and family—you are an obsessed workaholic. Stop. It is not worth it.

3. If you’re constantly fighting with the people you love over your obsession with work—you are an obsessed workaholic. Stop. It is not worth it.

4. If you don’t care anymore and think it will all be worth it when you “make it”—you are an obsessed workaholic jerk. Stop. It is not worth it.

Running your own business is only worth it if you keep the reason why you started front and center.

You want a better life for your family. You want your business to impact lives. You want to change the world. But what good is all of that if you lose yourself and your family in the process?

Protect What Matters Most

This story is the reason Dawn created her emergency legal resources and this YouTube video on closing a business in an emergency. You don’t have to wait for your world to fall apart to have a plan.

Your business deserves a solid foundation. So do you.