I know I have said it before: Contracts are the life blood of successful small businesses.

They embody and document that all-important sale of a product or service. They represent weeks or even months of hard work, persistence and proving yourself to a customer or client, even before you get the chance to produce or perform.

Indeed, a contract is an affirmation of sorts that someone out there has recognized the value of and need for your product or service.

In June of last year, I suggested using the four R's to ensure that the end result is an asset, rather than a liability, for your company:

1. Read
2. Review
3. Reflect
4. Revise

1. Be absolutely sure that…
   
   … the business terms reflect your understanding of the deal, including the payment and performance terms. There are no "do-overs" later in a contract… and certainly no "mulligans among friends."
   
   It seems so obvious, but business terms consistent with the deal are the first and last thing to confirm before you sign.

2. Be absolutely sure that…
   
   … the risks you undertake are protected within the insurance policies which protect your company.
   
   Depending upon the nature of your business, you have, at the very least, general liability insurance and possibly professional liability insurance in place. If you undertake a risk without understanding the implications, it's your company at risk.

3. Be absolutely sure that…
   
   … you have a documented way to terminate the contract if your client fails to pay you.
   
   Think it's a given that you can stop work while you pursue payment? Maybe, maybe not. Sometimes, being able to get out of a contract is as important as being able to get into one!

As presidential politics unfold before our reluctant and somewhat skeptical eyes these days, I find it comforting to return to the days of actual leaders in our country… and there have been many, even in recent decades.

One shining example is Franklin Delano Roosevelt. Although he died before I was born, FDR has always appeared to me to be the quintessential leader… personally charismatic… professionally intellectual… with a broad sense of the world around us and a determination to do right by people who truly needed their government to step up for them.

Jean Edward Smith wrote an epic biography of FDR a few years ago, one which is timeless in its portrayal of a man who, despite physical challenges and personal wealth which could have led him down a very different path, fulfilled a destiny of contributions to his country whose legacy continues today.

He was a man bigger than life and he strides off the pages of Smith's biography with personal imperfections, political naïveté (which blossomed into political acumen), an unquenchable enthusiasm for government's possibilities and a determination to achieve much for the country in the time he was given.

The relationships he created and nurtured with world leaders burnished America's reputation as a world leader and the world lost a great deal when FDR died. Winston Churchill said that "… meeting Franklin Roosevelt was like opening your first bottle of champagne; knowing him was like drinking it."

I highly recommend this impressive read in this winter of our discontent.

Widett and McCarthy specializes in advising small business owners in the area of contracts. Whether reviewing a contract for services with your customer, negotiating a lease with your landlord or finalizing financing documents with your lender, we make sure your best interests are protected.

In addition, and for those clients whose successful growth requires a more comprehensive relationship, we act as "general counsel:" On-call when you need us as a sounding board, legal advisor and strong right hand.