Tag: management

I had an incredibly sobering conversation this week. It centered around an analogy that stopped me in my tracks—and I want to share it with you.

Imagine a Waterfall…

Now imagine your business is on a river. Some businesses are way upstream, paddling with confidence. Others are drifting closer to a rapid. And some—maybe more than we realize—are already going over the edge. The waterfall analogy is a clear picture of why we need to protect our businesses, “before the fall.”

Here’s how it breaks down:

Above the Waterfall: Calm Waters and Confidence

Many business owners are floating far upstream. They’re doing well—profitable, stable, and maybe even growing. They believe the dock they built will always hold, and the idea that something could “unmoor” the boat isn’t even on their radar. These owners aren’t looking for support—because it doesn’t feel like they need it.

Drifting: A Sense Something’s Off

Then there are owners who feel the current picking up. They know something’s not right. Maybe sales are slowing. Maybe they’re working longer hours, or cash flow is getting tighter. But instead of asking for help, they paddle harder. They’re thinking positive. They’re surrounded by messaging that tells them success is just around the corner if they hustle harder.

There’s a subtle taboo in the business world about saying:
“Something isn’t working.”

On the Edge: The Point of No Return

Some business owners are at the very crest of the waterfall. Everything feels chaotic. The team is stressed, money is tight, and decisions feel reactive instead of strategic. There may be one last chance to avoid the drop—but gravity is real. And unfortunately, many businesses don’t seek help until it’s too late.

At this point, the panic sets in. Some throw everything out of the boat—employees, marketing, even inventory—hoping to lighten the load. Others resign themselves to the fall, believing it’s too late.

At the Bottom: Soaked, Shaken, and Searching

Then there are the business owners I meet most often: the ones at the bottom of the falls. Soaked, exhausted, unsure what just happened. They’re looking for their oars, trying to figure out how to rebuild. 

And while I love helping them recover—crisis consulting is meaningful, life-changing work—I know in my soul my real mission is preventing the fall.

From Recovery to Prevention: A Shift in My Mission

For the last six years, nearly all of my clients have come from referrals—usually after something went very wrong. I’ve been able to help them stabilize, rebuild, and regain clarity. But I want to shift the conversation.  The truth is, there is a ton of shame that prevent business owners from seeking help. 

I want to reach business owners before the drift begins. Before the warning signs become a waterfall. Before an unexpected emergency or lawsuit takes them out.

Why Prevention Matters: Real-World Risks in Business

Let’s give credit where it’s due—the SBA, SCORE, and other startup resources do great work helping new business owners with plans, funding, and mentorship. But what happens after your business is up and running?

The real work begins. That’s when you need:

  • Key man insurance to protect your business in case something happens to you.

  • A clear understanding that unemployment insurance doesn’t cover owners.

  • Legal and HR systems that protect against liabilities.

  • Financial structure, compliance, and operations planning.

  • Strategic forecasting for capacity and cash flow.

If you’re in a state like California, employment law is one of the fastest ways a business can get thrown over the falls. An unexpected claim, a misclassified contractor, or a wage & hour issue can spiral into litigation, penalties, or worse. 

There are a lot of things in the market that business owners cannot control. Regulatory changes, disruptive products and services, employees leaving, etc.  BUT if we are allowing our ego (and shame) to prevent us from taking action with what we can control, we are potentially setting ourselves up for a trip over the falls. 

My Story: Why I Ring the Bell

If you’ve followed me for any length of time, you know the story of UNEQ, the company we lost in 2013 after my husband’s near-fatal accident. That moment changed everything. We didn’t have the protections in place. No safety net. No key person insurance. It wasn’t just a financial crisis—it was a personal one.

I’m not here to fear monger.

I’m here to tell the truth: We often wait too long to get the skills and support we need to run a business—not just start one.

If you’re drifting—or if you’re still tied to the dock but haven’t looked downriver in a while—now is the time. Not to panic, but to prepare.  If you’d like to chat with me about a legal audit of your business in California, just reach out for a consultation. 

 

*photocredit* Maspnet.com Photographer: Esperanza

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.

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.