Business Divorce: Treat Your Operating/Partnership Agreement Like a Prenup

Take my word for it: Business divorces can be worse that marriage divorces.

I have NEVER handled a divorce case (and neither do I have the desire to handle one). One of the reasons is the sheer exhaustion it would take to handle a divorce between a married couple because of the emotions, money, children and other matters at stake. But over the years of handling business disputes, I have come to realize that business divorces are as contentious, if not more, than traditional marriage divorces. And like the often talked about prenups that are a part of some marriages, a business prenup is essential to protecting assets and making sure all parties have an understanding of what happens IF..which typically means WHEN…something goes wrong with the business venture.

Business Terminology Lesson 101: “What’s in a name”?.

So some basic terminology before I elaborate on the need for a business “prenup”. If you are in business with someone other than yourself and have not filed paperwork with the Secretary of State (because it’s not required for general partnerships) or have filed with the Secretary of State as a limited liability partnership or limited partnership,  the business entity is called a “partnership”, with each of the business owners being a “partner”. This applies even if your business partner is your spouse. If you have filed paperwork with the Secretary of State to become a limited liability company (LLC), then you have a “limited liability company”, each of the business owners being a “Member” and NOT a “partner”, which has a different legal meaning. If you have filed as a corporation of any kind with the Secretary of State, you have a “corporation”, the owners of which are called “shareholders” and a Board of Directions. The document that will be considered the business prenup for the partnership is called a “partnership agreement”, for the limited liability company is an “operating agreement” and for the corporation is a “shareholder agreement/by laws”. For purposes of this blog, I shall call them “prenup documents” to refer to either of these items. These documents are not filed with the Georgia Secretary of State but represent the details of the business arrangement between the owners.

“What’s Love Got To Do With It?”- By Tina Turner, the Queen.

So, as Tina Turner sung, “What’s Love Got To Do With It”? You want to go into business with a person because you are in love with a business idea. Fine. But be smart and don’t let emotions get the best of you that you don’t protect your interests—because love can be highly overrated when things go sour. I tell people that not getting a prenup (in marriage or business) is like driving a car without a seatbelt—no one wants or expects to get into an accident but you cannot control the other people. Protect yourself now or regret it later—it’s that simple.

Things to Consider Adding to Your Business Prenup *Not an exclusive list:

1. Termination: What happens when the business dissolves (assets including property and money, “winding up activities” such as paying creditors, staff, settling accounts, notifying clients), if the business is not dissolving but a portion being sold, are there “Rights of First Refusal” to other business owners, what is the method and process for doing a fair business valuation, is there a Buy-Sell Agreement attached to this prenup (THERE SHOULD BE!)
2. Rights: What accounting rights is each owner afforded? How are voting shares distributed and maintained, if any, to prevent dissolution by adding new owners? Is a super majority needed for major decisions? How are disputes resolved internally? Are rights evenly distributed among owners or do certain owners have heightened rights because of their particular position?
3. Capital: Is the default percentage of ownership equal to the percentage of profits? Is the default percentage of initial contributed capital equal to the amount of ownership? What about “sweat equity” and how is that calculated? How is capital distributed—when and what method? Are there “stock options” that will be included or in place of distributing capital?

*This is an incomplete list of items included in business prenups but gives you questions to think about OR even better—for your attorney to think about.

So before you “walk down the aisle” with your “business love”, make sure that you pause and clear your head to think logically about the “what ifs” that could go wrong with your business relationship (or any for that matter.) It’s best to involve your legal counsel into this transaction as soon as possible so that everything can be taken care of and you can start your business marriage on the right foot and knowing your rights have been protected.

Legal Life Lesson: What Happens To Your Business In a Divorce? with Guest Blogger Scott Morgan, Esq.

DISCLAIMER: This is meant to be general information and advice regarding businesses and divorces. Kendrick Law Practice is ONLY authorized  to practice law in Georgia and no other state or territory. Nothing in this blog post should be construed as legal advice and is for information purposes only.

What Happens to Your Business if You Get Divorced?

Everyone enters the marriage with the hope and even expectation that it will last forever. Unfortunately, the reality in today’s society is that about 50% of marriages will end in divorce. A divorce is unpleasant and messy for anyone, but it can be especially so for a business owner. In divorce cases where the parties own a business that is subject to division things can get complicated in a hurry.

Use of a Premarital Agreement to Protect the Business 

Depending on your jurisdiction it may be possible for you to obtain a premarital agreement that would exclude a business that you own pre-marriage from consideration in any later divorce and property division. For those business owners who are considering marriage this would definitely be a worthwhile topic to discuss with a competent family law attorney in your jurisdiction. If the law in your state permits this it is an extremely effective way to avoid future disputes concerning your business.

How Will the Value of the Business Be Determined? 

In most cases, one party will be awarded the business and the other party will be bought out. In these scenarios often the biggest issue in the case is what the value of the business is. Unlike real estate, retirement accounts or vehicles, valuation of a business is a relatively inexact science. The nature of most small businesses makes them often difficult to sell and there is no ready-made database of “comparables” to look at as there are with residential homes.

Consequently, in cases where the business is of substantial potential value one or both of the parties may hire a business valuation expert to prepare an appraisal and report for use in the litigation. Potentially this expert may also appear in the case and testify at trial about their opinion as to the business value.

While business valuation experts have certain criteria that they use in reviewing a business and calculating its value (primarily based on review of historical financial data), all business valuations are by their very nature speculative. The only true way to find out the worth of a business is to actively market it and determine what a willing buyer would actually pay. Since this is usually not practical (unless the parties are actually trying to liquidate the business), a valuation expert is the next best thing.

Can the Parties Divorce and Still Be Co-Owners? 

Occasionally a couple run a business together and, while they are good business partners, they are not good marriage partners. In those circumstances where both parties are integral to the success of the business they may both want to continue running the business together, even after they are divorced. I have seen this happen in my own cases and with the right personalities it can work. But for going down this path both parties need to give serious consideration as to whether this is a practical solution. An example where it would not work well would be where one spouse doesn’t really want the divorce and sees co-ownership as a way to stay connected to the other spouse and even potentially reconcile at some point in the future. In all likelihood this situation would worsen if and when the other spouse decided to move on with their life and perhaps began a new relationship. In a situation like this it is far better to simply determine a value for the business and work out a buyout arrangement.

Divorcing as a business owner is certainly more complicated than the typical divorce and a situation where you definitely want to obtain an experienced, competent local family law attorney to advise you on your options.

About the Author 

Scott Morgan is a Texas family law attorney. He has practiced family law since 1994 and is Board Certified in family law by the Texas Board of Legal Specialization. He is the founder of the Morgan Law Firm which has offices throughout Texas including its new Sugar Land office.

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Legal Life Lesson: He who controls the PROCESS, controls the RESULTS. (Know how the legal system works!)

Introduction: What Should You Take Away?

If you have never heard this saying “He who controls the process, controls the results”, it is one that is very true and can be used in every aspect of your personal and business life. The concept is very simple: If you know the rules of any game, it’s easier to control the outcome. Think about a basketball player that knows what the rules of the NBA are versus someone that doesn’t—-I’m pretty sure LaBron James, aside from his skills, would fair a LOT better than say me who doesn’t care for basketball and has no idea what I can and cannot do on the Court.

My Story [based on my Firm or other business owners’ stories]

For those of you that have been through Georgia’s legal system, you are all too familiar with how the process works—-it’s not a swift as you might expect it, it’s expensive and it can get contentious at times—-that’s why KLP has made a conscious decision to keep businesses “IN business and OUT of Court”. But let me give a brief step-by-step diagram of the PROCESS of a typical civil court proceeding in State and Supreme Court (NOTE: In Magistrate Court, you can skip the “Pretrial Conference” and “Discovery Period” mentioned below)

1. A civil suit is filed in the county where the Defendant resides, including the filing fee which varies, a summons, Entry of Service Form and Civil Court case filing form; (If it’s not filed in the correct venue and jurisdiction, the Court has no jurisdiction and your case will be dismissed);

2. A process server or sheriff (depending on county rules) will serve the Defendant according to the Georgia Code (There are provisions for Defendants that willfully avoid service);

3. The Defendant has at least 30 days to respond (more depending on certain circumstances) with an Answer and/or counterclaim (This is VERY important—Businesses have to be represented by an attorney in Georgia or risk there being a default judgment if individuals try and file their own answer AND certain counterclaims are compulsory—meaning if you don’t assert them NOW, they are lost forever and you can never bring the claim);

4. Once the Answer is filed, there is a six (6) month “discovery period” in which either side can ask questions and obtain evidence from the other side; (At this time, some people file a “Motion to Dismiss” that can get rid of a case immediately)

5. In between this “discovery period”, there will be a variety of motions–-Motions for Summary Judgment, Motions to Compel, Motions for Contempt, etc. (Remember that Motions ask the Court to do something and the Court may require an actual hearing before deciding either side)’

6. There will be a pretrial conference closer to the date of trial after the six (6) month period where both sides decide and meet with a Judge to decide the “schedule” for the trial—deadlines, witnesses, objections, etc.; and

7. Trial. Good luck with that monster. No lawyer should EVER guarantee the outcome or length or cost of a trial. There are so many other people involved that determine those factors (judge, jury, opposing counsel, Defendant, Plaintiff, etc.)

A few lessons to be learned: Call to action!

1. Give KLP a call at (678) 739-8109 or visit us HERE to sign up for your FREE 15 minute phone consultation or 1-2 hour Business Legal POWER Session. You may have to go through Nos. 1-3 [since you cannot prevent someone from filing suit against you] but No. 4 can get a frivolous case dismissed and attorney fees recouped in some cases.

2. Educate yourself about other items such as business contract terms by following us on social media (below), or listening to our audio powerpoint presentations at www.slideshare.net/kendricklaw or taking a look at our other blogs on this page. You’ll be happy you did.

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Legal Life Lesson: NEVER, EVER stop learning.

Introduction: What Should You Take Away?

It’s simple. The take away is NEVER, EVER stop learning. As a business owner, it’s easy to think we are experts in our field and that we have reached the pinnacle of our success or learning abilities. But NOTHING could be further from the truth. I have four (4) degrees and I continuously set aside time each week to learn something new about either business or law. It’s refreshing and it keeps me on the cutting edge of what’s going on in my field. As a matter of fact, one of KLP’s corporate values is “continuous education” and that is why we have started to offer training classes for business organizations and groups.

My Story [based on my Firm or other business owners’ stories]

I have served on several non-profit boards. It is AMAZING how many non-profit boards (and corporate boards) do not understand that there is a LEGAL responsibility imposed on every Board member, non-profit or not, under the law. That’s why I prepared an audio powerpoint presentation to help start the discussion and guide board members about their legal responsibilities. It can be viewed at http://www.slideshare.net/kendricklaw/corporate-board-training and provides a helpful start to training in this area. KLP does offer in person classes and training that can be found under our “Business Legal POWER Session & Training” section on our website at www.kendricklaw.net. There are also other audio powerpoint presentations on a variety of business and legal topics on our slideshare account you should take a look at to empower yourself and your organization.

Example of how KLP lives up to its corporate value of “continuous education”:

Here is some examples of what I have heard from Georgia business owners:

1. We have a “Business Resources” section on our website with our latest enewsletter, forms, data, etc. for business owners at www.kendricklaw.net. 

2. We have our audio power point presentations that you can listen to at your leisure as well as 1 page “White Papers” on specific legal contract terms at www.slideshare.net.

3. We have our blogs at www.kendricklaw.wordpress.com that give real world experiences and lessons to be learned as  a business owner.

4. We have a monthly enewsletter that is filled with GREAT business articles, business legal tips, information, and more; and

5. We give out business information on our social media pages throughout the day every day. You can find those links at www.kendricklaw.net as well.

A few lessons to be learned: Call to action!

1. Sign up for our MONTHLY enewsletter AND follow us on social media that is filled with GREAT information through our website at www.kendricklaw.net.

2. Give KLP a call at (678) 739-8109 or visit us HERE to sign up for your FREE 15 minute phone consultation or 1-2 hour Business Legal POWER Session.

3. Hire Help! If you find that your attention is lacking in an area, hire us. We conduct training and classes so just give us a call or go online for more information.

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

SPECIAL EDITION: What do Georgia legislators “do”? (And why you should care!)

Introduction

As many of you know, I am an elected official and Member of the Georgia House of Representatives. Therefore, each Legislative Session (January – around April) I am representing over 54,000 Georgians at the State Capitol, passing laws for over 9.5 million Georgians. However, I am STILL practicing law. The law firm is still operating FULL time so please send clients our way. We would appreciate it as we continue to serve the citizens of Georgia. But I did want to take some time out and explain what exactly this “2nd job” I have does and how it can help you as a Georgia business owner. I have enlisted the help of one of my colleagues in the GA House with this special edition blog. See their responses below.

Rep. Brett Harrell:  I am an Atlanta native and moved to Gwinnett in 1972. I graduated from the University of Georgia with a business degree and have owned and operated several small businesses over my career. Today I am a salesman with Advanced Disposal Services. I have been blessed to serve my community in a number of capacities over the years. I am a former Mayor of Snellville, former Executive Director of the Highway 78 (Evermore CID), and currently serve as a State Representative.

What Should You Take Away?

Last blog I spoke about taking an OVERALL look at your business in order to be a successful business owner. This week I want to add another component—policy engagement. I understand that you are busy working and making business decisions BUT please remember that there are external forces that decide how your business functions and a huge component of that are the local, state and  federal policies and laws made by legislators, judges and agencies. It’s important to keep abreast of what’s going on in the “political world” so make sure you can voice your opinion when something is being proposed that adversely affects your business interests. It’s not selfish—-it’s being a good business owner and a good American. We all should strive to do this, whether we own a business or not.

Rep. Brett Harrell: Business should have an intimate interest in the Georgia legislature. Our laws and policies guide the operations of the Georgia Department of Labor, Revenue, Transportation, and others that impact small business on a daily basis. Your legislator should hear from you often on what is working and what needs change or elimination.

My Story [Why do I care about small business owners?]

I love business owners, especially since I was raised by 2 Georgia entrepreneurs. I believe one of the functions of government is to provide access to information and resources to help spur economic growth and sustainability and jobs through our Georgia small business owners.

Rep. Brett Harrell: Both of my parents own and operate small businesses – Briarcliff Pharmacy and The Personal Touch Hallmark and Gift Shop. I owned and operated a small print shop, American Speedy Printing, for 20 years. Small business has provided the core of my upbringing and work life. Count me an ally when working to improve and expand opportunities for

small businesses.

Ways I support Job Creation and Small Business Development in the Legislature

I have a website that I maintain as a legislator with  2 page print out on what legislators can do other than propose legislation. You can find a full version at www.kendrickforgeorgia.com under the “Legislative and District Services” tab. We can do any number of things such speak to state agencies if there is a administrative problem you are having with your business or help you find your legislator if you want to voice your opinion about an issue.  Additionally, you will see on www.kendrickforgeorgia.com that I am hosting my 2nd Annual Business Owners Day at the Capitol with other colleagues, inviting business owners throughout the state to meet and greet their state legislators and learn about different resources on the state level.

Rep. Brett Harrell: In addition to responding to specific constituent requests, I serve on both the Transportation and Regulated Industries Committees. Whether legislation before those committees or the House in general, I advocate and vote for small business. I look forward to working again this session with the Red Tape Watch that is taking input from small business owners across the state on ways to improve the environment for job creation and expansion.

A few lessons to be learned: Call to action!

1. Take 1/2 a day to come up to the state Capitol and speak with legislators about YOUR concerns! We listen. It can be at my 2nd Annual Business Owners Day at the Capitol or anytime we are in session. Visit www.legis.ga.gov to learn more about YOUR legislature!

2. Give my office a call for help. We are standing by. I can be reached at (404) 656-0167 or dkendrick@kendrickforgeorgia.com. A full description of my staff and the services they offer can be found at www.kendrickforgeorgia.com as well.

3. Learn how a bill becomes law in Georgia. You can http://www.senate.ga.gov/sos/Documents/habbal.pdf. Keep it handy and use it!

4. Contact Brett Harrell- Contact info: www.voteharrell.com, Twitter: brettharrell, Capitol phone: 404-656-0254, Brett@VoteHarrell.com

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Legal Life Lesson: “Don’t Miss the FOREST because of the TREES”- Take a look at your OVERALL business.

Introduction: What Should You Take Away?

Don’t forget that there are MANY aspects to a business—-marketing, operations, administrative, sales, finances, etc. It’s easy as business owners to get bogged down in one area or another and forget to breathe…step back…and look at the WHOLE business as opposed to one aspect. Some business owners can handle being a business owner and taking care of “the forest” without getting focused on just “the trees”—others are so focused at being good at whatever service or product they offer that its best they find someone who can run their business for them. Otherwise, no matter how GREAT your product or service is…it surely won’t last because it takes several factors to run a business, not just a good product or service.

My Story [based on my Firm or other business owners’ stories]

In law school, there is a saying “Don’t miss the forest because of the trees.” The reason law professionals said this because scared, new law students would concentrate so much on learning this particularly detailed or obscure law that they missed how that law fixed in the entire context of a legal topic or the legal field in general. This makes bad attorneys…and even worse business owners.

For example, you’d be amazed what business owners discover during our Business Legal POWER Sessions:

Here is some examples of what I have heard from Georgia business owners:

1. “My accountant set up my business structure for me. They never told me THAT was a consequence of this particular business structure.” (Solution: We converted a General Partnership to a Multi Member LLC)

2. “I never knew that I needed a buy-sell agreement. That would have been useful now that I am getting a divorce and my husband owns a portion of my business.” (Solution: We referred her to CPA to value the business and other financing options)

3. “I am looking for a way to manage customers, vendors, employees, etc.” (Solution: We taught them about cloud based CRM systems they could implement.)

4. “I really REALLY need to get on social media.” (Solution: We gave general advice about social media and referred them to our social media partner.)

5. “Long Term goals? I’m trying to get past next week’s payroll.” (Solution: We took time to ask them questions about their 5 years plus plan for their business to see what actions to take NOW to work towards those goals.)

A few lessons to be learned: Call to action!

1. Take 1/2 a day to do strategic planning for your business: Reflect on the past week’s events and plan for the upcoming week.

2. Give KLP a call at (678) 739-8109 or visit us HERE to sign up for your FREE 15 minute phone consultation or 1-2 hour Business Legal POWER Session.

3. Hire Help! If you find that your attention is lacking in an area, hire help. We offer free referrals to our business partners so give us a call.

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

 

Legal Life Lesson: We (KLP) are a vitamin, not a pill- Which one is YOUR business?

Introduction: What Should You Take Away?

What best describes what YOU do for a living? Are you a vitamin (prevent problems) or a pill (solve problems)? One of the best ways to describe what it is that KLP does it to put it this way: We PREVENT problems as opposed to SOLVING problems, hence why we are vitamins and not pills. (It should also be noted that while we are VERY good lawyers…we are not magicians. We cannot pull things out of a hat that aren’t there but that’s a side note and I digress) The distinction between being a VITAMIN vs. a PILL is an important one for a business as it should guide your business strategy and, more importantly, your marketing strategy.

My Story [based on my Firm or other business owners’ stories]

If you are a VITAMIN (you prevent problems), you can see how it’s different than marketing yourself as being a problem solver. It’s almost like being a doctor—-most people don’t do the yearly check ups, eat right, exercise, etc. until a problem arises and then they run to the doctor to “fix them.” It must be human nature to wait for a problem and then seek out someone to “fix them.” But alas, for most legal problems, by the time you get to litigation, there is no fixing…at least cheaply without wasting time and lots of money. So KLP focuses on preventing the problem as much as possible in the first place. Aaahhhhh yes—-we are a Flintsone vitamin. Cherry flavored perhaps?

Now, since KLP is a VITAMIN, we have the extra hard task of convincing you, the business owner, that you should invest NOW to save LATER and if the number of Americans that actually have saved for retirement is any indication, this message doesn’t resonate with most people. So KLP’s marketing has to be witty—crafty—-very persuasive. That’s partially the reason for my “Legal Life Lesson” blogs is because I give real world, practical examples of what we do and the consequences of not taking preventive measures BEFORE you have a problem.

For example, my “pitch” to prospective clients usually goes something like this at events:

Me– “Hello, I’m Dar’shun Kendrick. I own a business law firm that keeps GA small businesses “IN business and OUT of Court” through document drafting, document reviewing and negotiating services. Since I have an MBA, we provide business counseling and legal advice for all our clients.” (Note it’s short, sweet and includes my mission statement.)

Potential Client- “ok. Great.” *Takes my card. “Well hopefully I won’t need you.”

Me-*After a short, nervous giggle because I realize they didn’t hear or understand the mission statement I just professed. “You need me right now. That’s the point. We are lawyers that keep you OUT of trouble. We are a VITAMIN as opposed to a PILL.”

Potential Client– “oh…I get it. We should talk.”

Me- “Yes…yes, we should.”

A few lessons to be learned: Call to action!

So if you are a VITAMIN like KLP, here are a few practical lessons to be learned about overall business strategy and marketing yourself as a VITAMIN, which goes against human nature to wait for a PILL:

1. Be clear in your communications WHY the prospect should take you, the vitamin (Ex. Higher costs of court and attorneys, headaches, wasted time in Court, etc.)

2. Provide real life EXAMPLES of you, the vitamin, in action (Ex. My “Legal Life Lessons” or examples from clients, protecting their communications of course)

3. Focus your efforts on those that have already PROVEN they like vitamins over pills (Ex. Most of my speaking engagements have PAID participants; this shows the prospect is willing to INVEST.)

NOW…go forth and BE A VITAMIN—but make sure you’re packaged in such a way that you’re easy to swallow 🙂

DISCUSSION QUESTION: Are you a VITAMIN or a PILL? Why?

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice or a video at https://www.youtube.com/watch?v=3QFFIRk5ECw to answer “Why KLP?”.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Skype Username: KendrickLawPractice

 YouTube Channel

Legal Life Lesson: Give “Thanks” to your strategic business partners!

Introduction: What Should You Take Away?

I LOVE Kendrick Law Practice’s strategic business partners…and you should LOVE your strategic business partners as well. KLP’s strategic business partners not only help us with client referrals and leads, but they are KEY to providing comprehensive, well rounded services to our clients and prospective clients. On behalf of KLP and the hundreds of business clients we have served and will serve, we want to say THANK YOU to you this Thanksgiving season.

My Story

It’s no secret that KLP’s mission is to keep business owners “IN business and OUT of Court”.  One way to do this is to not only be the BEST business attorney I can be but also to connect clients, prospects and strategic partners with each other and strategic partners that can help with banking, accounting, social media, etc. This way we provide the utmost VALUE to our clients.

A few lessons to be learned: Call to action!

Give these strategic partners a call TODAY and tell them KLP sent you. I am confident they will take care of your non-legal needs. NOTE: This is Step 10 of our “1 Hour Business Legal Consultations” that we offer for $150.00. There are nine (9) more steps of useful information. We are waiting to consult with you TODAY so give us a call to schedule your appointment at (678) 739-8109.

POINT TEN (10): Follow Up & Recommendations		Business Attorney:Dar’shun Kendrick, Kendrick Law Practice, www.kendricklaw.net, dkendrick@kendricklaw.net , (678) 739-8109
		Bankers:Demetra Abraham, Bank of America, VP of Small Business Banking, (404) 809-8051, demetra.abraham@bankofamerica.com Dexter Johnigan, Citizens Trust Bank, VP Financial Relations, (678) 406-4000, dexter.johnigan@ctbatl.com Elizabeth P. Mercier, CDC Federal Credit Union, President/CEO, (678) 553-5384, bmercier@cdcfcu.com Angela C. Reach, Suntrust, VP Relation Manger Business Banking, (770) 982-4228, angela.reach@suntrust.com
		Accountant/CPAs:Curtis Mencer, Mencer & Associates, (770) 315-0008, curtmencer@bellsouth.net Charles Bernath, The Tax Office, (678) 356-4373, charles@thetaxofficeonline.net Shermanetta Carter, CPA, Integrity Accounting Service LLC, (770) 808-9878, cartercpa@integritycpa.net
		Chambers: DeKalb- Leonardo McClarty, (404) 378.8000 http://www.dekalbchamber.org Rockdale- Linda Brownfield,  (770 483.7049 http://www.conyers-rockdale.com Gwinnett- Robert Dobbs, (770) 232.3000 http://www.gwinnettchamber.org Metro Atlanta- MARY MOORE, (404) 880.9000 http://www.metroatlantachamber.com
		IT Solutions/Business Solutions:Charles Hightower, 60 Minutes Approval, (678) 288.5915, chightower@60ma.com
		Financial Planner:Sidney Divine, New England, Financial, sdivine@atlanta.nef.com, (404) 704-3854 Alonzo Portwine, First Command, ajportwine@firstcommand.com, (678) 364.9791 Julian Pouncy MBA, Prudential, julian.pouncy@prudential.com, (678) 571.4883
		Financial Training: Charles Green, SBFI, (404) 406-3181, Director@SBFI.org
		Georgia Specific Resources-SCORE, SBDC, Micromax, SBA:SCORE- Dick Fenster, (404) 331.0121 www.scoreatlanta.org SBDC- Erica Bracey, (404) 413.7830 www.georgiasbdc.org Micromax- Shelaonda Stewart-Brown, (404) 394.5221, ssbrown@ging.org SBA- www.sba.gov
		Website Development:Laurence Wingo web@smartintuitionsmp.com (678) 983.8586
		Insurance Agent:Hugh Williamson BB&T Insurance Services hwilliamson@BBandT.com (770) 312.2227 Markee Tate American Family Insurance Mtate1@amfam.com (678) 537.8956
		Social Media Expert:Dahna Chandler Audience Matters Media, Inc. agencyprincipal@myaudiencemattersmedia.com (404) 410-4999
		Cooperative Work Space:Alan Urech, Sr.VP 200 Office 200 Peachtree Street Suite 206 Atlanta, GA30303 (678) 520.9989 aurech@200peachtree.com www.200-office.com
		Micro/SBA Loans:Charles Blackmon (up to $50k) (404) 378-1899 Charles.blackmon@debco.org www.debco.org Kevin McGee (up to $1 Million) (404) 592.2053 mcgee@aceloans.org www.georgiagreenloans.org
		Business Consultants:Jason Warner, Monsoon Marketing, (678) 849.0243, Jason.warner@monsoongrp.com www.monsoongrp.com Austin Thompson Jr., (404) 587.3949 info@aetjr.com www.aetjr.com
		Photography:Natasha Davis-Bowen, Visionary People LLC, (770) 337.1995 natasha@visionarypeoplearise.com
		Professional Service:Print Don Jackson, Best Print Design, (404) 288.5595 don.jackson@bestprintanddesign.com www.bestprintanddesign.com Ketan Shah, Digital Express Printing, (770) 931.2025 Organization Leslie Walden, Its Time to Get Organized LLC, (404) 303.8431 leslie@itstimetogetorganized.com www.itstimetogetorganized.com

DISCUSSION QUESTION: What is keeping YOU from moving forward with retaining an attorney to draft the documents on this checklist?

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice or a video at https://www.youtube.com/watch?v=3QFFIRk5ECw to answer “Why KLP?”.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Skype Username: KendrickLawPractice

 YouTube Channel

Legal Life Lesson: KLP’s gift to YOU on “Small Business Saturday” (Nov. 24th)

Introduction: What Should You Take Away?

It’s here again! Small Business Saturday is November 24th. This is the day set aside throughout the Nation to celebrate and patronize small businesses. It is sponsored by American Express and more information can be found online at http://www.shopsmall.com. There are LOTS of resources on there about how to promote YOUR business in preparation for “Small Business Saturday” so take a look—but NOT before you read below about KLP’s special gift to GA small business owners. NOTE: We will be open on November 24th from 8 am to 6 pm to get you started on vital legal services so give us a call at (678) 739-8109.

My Story

If you DO NOT know, KLP’s mission is to keep business owners “IN business and OUT of Court”.  We do this through a number of ways but primarily it’s by convincing YOU, the business owner, that it’s better to have properly written agreements and contracts than not—because otherwise, you could end up in a lengthy court battle trying to establish there was a contract and what the terms of that contract were. Not easy, not cheap, not fast.

So I thought to myself: “What is a way that I can get business owners thinking about the TYPE of agreements they need and WHY they need them?” That’s when it hit me—-I could give them a “Business Owner Checklist” filled with GREAT direction for what types of agreements and documents business owners need and questions they should be answering in these documents as well as some helpful information about Georgia law with respect to businesses. So I present to you…in honor of “Small Business Saturday”……our exclusive Business Owner Check-list. See below. (If you would like a copy emailed to you, give us a call at (678) 739-8109 or manager@kendricklaw.net)

A few lessons to be learned: Call to action!

Page 1 of 2 of Business Owner Checklist

Page 2 of 2 of Business Owner Check List

Get started with these VITAL legal services today by giving us a call at (678) 739-8109. We are standing by from 8 AM- 6 PM on Small Business Saturday to answer YOUR questions.

DISCUSSION QUESTION: What is keeping YOU from moving forward with retaining an attorney to draft the documents on this checklist?

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice or a video at https://www.youtube.com/watch?v=3QFFIRk5ECw to answer “Why KLP?”.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Skype Username: KendrickLawPractice

 YouTube Channel

Legal Life Lesson: Procrastination can cost you THOUSANDS! Here’s how.

Introduction: What Should You Take Away?

We have all heard it before—-“Don’t wait….” to do this or that. But nothing is more urgent than when you are a business owner, conducting business, and you WAIT to let your accountant do your taxes or you WAIT to fire that employee you know isn’t doing anything or you WAIT to let your attorney know you’re in trouble. Waiting, my dear business owners, can and will cost you THOUSANDS. Just hear my true life story below.

My Story

KLP’s mission is to keep business owners “IN business and OUT of Court”. One of the reasons for this mission is because litigation is expensive and tedious and time consuming and a headache. Well….AMAZINGLY enough, I had a client whom I advised in one of my 1 hour Business Legal Consultations,  to allow me to draw up a contract between him and his vendors and strategic partners and he DID NOT LISTEN. Why have a contract? It’s easier to prove in Court and lays out the expectations of parties. Why didn’t he listen? I have no idea.

Fast forward a few months and he’s in a lawsuit (over the exact contract I told him to get in writing). But it gets better….he waits until the week that his Answer is due to tell me he needs my services and wants me to represent him and his company……………………………………..you can imagine how that conversation went. Under GA law, you are given 30 days to respond to a Complaint after it has been properly served on you (45 days actually because there is a 15 day grace period). Well..there are a few lessons to be learned from this story.

A few lessons to be learned: Call to action!

1. “I told you so” doesn’t quite convey my feelings. When a professional advises you to do something, they probably have reasons for it. Had he had a contract, I would be submitting to the Court a Motion to Dismiss or Motion for Summary Judgment as opposed to just an Answer and Counterclaim. This case could be very expensive the longer it goes.

2. “It’s going to cost you” which were my exact words to this client. Waiting until the last minute to retain my services means extra work and time for me and my staff that we could have planned over a month had we known about your case. So do we charge a premium? Yes!

3. “You MUST communicate with your Dream Team”. It specifically states in my retainer agreements with my clients that they are REQUIRED to communicate with me; that’s the only way I can be the BEST attorney I can be. Silence is NOT golden in attorney-client relationships….it’s not good at all.

It’s simple. In the above case, this client could have spent maybe $1,500 on my draft of his contract and another $1,000 to file a Motion to Dismiss or for Summary Judgment in his case for a total of $2,500. Instead, he’s going to end up paying A LOT MORE to try to get to the bottom of a case, between 2 business owners, in which there is NO CONTRACT. Some people have to learn the hard way. Don’t let this be you!

DISCUSSION QUESTION: What is causing you to WAIT to have an experienced attorney on YOUR team that can provide you the CUSTOMIZED advice you need to succeed?

**The “Legal Life Lessons” Series was started by Attorney Kendrick in 2012 as a way to showcase real life legal situations that either she has experienced or those within her networks have experienced. The goal is to move away from boring, white paper style discussions about the law and focus on creating comfortable conversations about real experiences in the life of Georgia business owners.**

DISCLAIMER: Kendrick Law Practice and its attorneys are ONLY authorized to practice law in Georgia and NO OTHER territory, state or country and therefore any and all legal advice is only applicable for businesses and individuals that reside and/or located in the State of Georgia. Additionally, please be advised that this communication does not create an attorney-client relationship unless there is a signed or electronically filed retainer agreement on file with the Firm.
Kendrick Law Practice, LLC – www.kendricklaw.net (practicing business law exclusively)

Keeping Georgia small businesses “IN business and OUT of Court”

P O Box 630, Lithonia, GA 30058 * (678) 739-8109

Mission Statement: To provide Georgia small businesses PASSION for and ACCESS to HIGHLY CUSTOMIZED and PERSONAL business advice AND legal counseling, including document drafting, document reviewing and negotiating services. View an audio presentation at http://www.slideshare.net/kendricklaw/why-klp-kendrick-law-practice or a video at https://www.youtube.com/watch?v=3QFFIRk5ECw to answer “Why KLP?”.

Keep up with us on social media:
Twitter
Facebook
LinkedIn at “Dar’shun Kendrick”

Blogs at www.kendricklaw.wordpress.com

Slideshare at http://www.slideshare.net/kendricklaw

Skype Username: KendrickLawPractice

 YouTube Channel