Rarely does something coercive make a lasting difference, let alone improve conditions. However, as I thought about another calendar change, I decided to at least partially break my own rule and offer what I will call some suggestions that might lead to a better new year for business.
Resolution #1: Update your company minute book. For many companies, especially closely held ones, corporate formalities tend to relegate to the “we'll get to that” pile. In the new year, you may consider updating your company minutes. Holding meetings required by the operating agreement or internal regulations. Providing disclosures to members or shareholders. Documenting the company’s decisions that took effect last year. Review, update and remember your policies. Lawsuits are decided based on what the company wrote in writing — or failed to write.
Resolution #2: Review your contracts. For reasons unknown to me, people often sign a contract and never look at it again. This is unfortunate. Contracts explain how the business relationship will proceed, including the rights and obligations of the parties. What often happens is that actions performed in real time differ from what was planned and intended. Regularly reviewing your contracts can help ensure that your transactions or relationships are going as planned; Such reviews can also help avoid problems before they become a source of conflict and additional costs.
Resolution #3: Review your hiring policies and procedures. This is closely related to number 2 above, but instead of looking outward, you want to turn your attention to your business or organization. Labor and employment law is very complex. Few organizations do this flawlessly. Even if you're one of the few, laws, regulations, and even court decisions can change how you handle things. An annual review of your employee rules, policies and procedures simply makes sense.
Resolution #4: Review your insurance. I am a litigator. This means that if you are talking to me, something has gone wrong. I can't tell you how many times my clients, or potential clients, wait until a lawsuit is filed to consider the scope of their insurance coverage. Understanding your insurance coverage — what is covered, what is not covered, and what is required to maintain coverage — will not necessarily avoid future problems or disputes, but it will help with planning and, at least to some extent, provide some peace of mind.
Resolution No. 5: Review your banking and credit relationships. This may also fall under the “if it ain't broke, don't fix it” category, but may also be more appropriately listed under the “don't know that you don't know” stuff. Banks are companies that need to make money from their relationships with you. This means that banks will compete for your business. Understanding that you are the customer is the first step. Understanding the details of your account agreements and any credit or loan obligations is important. This isn't just about cost. An annual review can help ensure you get the most out of your banking relationship as well as ensuring you meet your obligations to your bank or lender. Try to avoid problems before they become a reason to talk to me.
Resolution No. 6: Review your annual tax assessment. This seems obvious, but it bears repeating. If you own property, the government expects you to pay taxes based on the value of the property. It is the government that decides the taxable value of your property, and therefore how much tax you owe and must pay. It makes sense, then, to consider what the government's value view is, and whether that view should be challenged.
These proposed resolutions are in no way intended to be comprehensive. They are topics that tend to come up in doing what I do, which is dedicated to providing reliable business advice to our clients. It is also part of what I would call wise management. However, my suggestions are just suggestions. But if they help me in some small way, I have achieved one of my personal New Year's resolutions.
