Reib Law - October 2018

REIB LAW

SHATTERPROOF NEWSLETTER

OCTOBER 2018

WWW.REIBLAW.COM | 940.591.0600

and maintain momentum to keep the bike upright. In a lot of ways, it’s like starting and running a business. Give in to feeling tired or get too comfortable and coast for too long, and eventually, you and your company will fall over. The key to success is not buying into the old saying “if it’s not broke, don’t fix it.” I’ve done exactly the opposite of that mantra with my business. I’m always trying to find ways to make it better, even when everything is running smoothly. To keep yours moving forward, you need to do the same. How can you tweak what you’re offering to add value? Look for new opportunities in your industry to make your product or service better. How can you change the structure of what you’re doing? The key to business is to find something of value that your customer needs, and then find a way to package and sell in a way that provides more value than what they’re paying. As long as you’re doing that, they’ll make the purchase over and over again.

NEVER STOP PEDALING WHAT BIKE RACING AND YOUR BUSINESS SUCCESS HAVE IN COMMON

I love everything about road cycling: the physical and mental challenge, the social aspect of the ride, the camaraderie, and the adrenaline rush I get during races. A friend of mine got into it several years ago, and I thought it sounded fun, so I jumped in. I was a runner at the time, but hadn’t biked much since I was a kid, so I picked up a 10-speed at Walmart and quickly realized that wasn’t going to cut it for 100-mile rides. One visit to a bike shop later, I was set. That was in 2011, and I’ve been riding ever since. Each August, there’s an annual ride I do with friends, and as you can imagine, it’s hotter than heck — in fact, that’s the name of the race. Last year it was so hot they started the race an hour early. It was still pitch black outside as we gathered at the starting line. I got up front, and we took off, me and some 15,000 other riders. Pure adrenaline rush. I was right alongside all these other riders, water bottles started dropping — you have to watch out for those — and there were some pretty good wrecks along the way. With running, if you get tired, you can just walk. But with cycling, you’re either pedaling or you’re not. If you keep coasting, you’ll eventually fall over. You have to keep moving

"THE KEY TO SUCCESS IS NOT BUYING INTO THE OLD SAYING 'IF IT’S NOT BROKE, DON’T FIX IT.'"

I’m a big believer in recurring revenue models. It was the reason I went to a subscription-based model. Everyone should find a recurring revenue source. It creates a consistent cash flow and removes some of the month-to-month stress. There’s some security in that, but you’re still looking to aim for better. In biking, you coast on the downhill. If you don’t take advantage of that coast, you’ll lose steam eventually and won’t have anything left for the next hill. But even on the downhill, you should still be thinking, “How can I take advantage of this downtime? How can I prepare for the next hill?”

–Scott Reib

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EXPERIENCE VS. POTENTIAL WHAT MATTERS MORE IN NEW HIRES?

Scaling a business is one of the most complicated challenges for entrepreneurs. Developing a model that allows for consistent growth while maintaining profit margins and effective systems is a substantial task for business owners. But once the proper blueprint is in place, a new test presents itself, and how well you perform will undoubtedly define the future success of your company. Hiring plays a significant role along a company’s path to success. It’s not a landmark or a checkpoint on the map; it’s the vehicle that takes you to your destination. Your business is only as good as the people who propel it forward. You need individuals who fit into your culture, possess the necessary skills to be effective, and have a desire to continue learning best practices if you’re ever going to achieve your goals. Some qualities are universally known to be linked to good hiring practices, but there’s still one important question that divides the masses: Do I hire for experience or potential? EXPERIENCE A degree- or trade-specific education can certainly lay a foundation for an employee to be successful, but experience provides specialized training that cannot be

found anywhere else. An employee who has a working knowledge of their craft can provide a sense of security when hiring. With new employees playing such a pivotal role in growth, many employers want to limit uncertainty and ensure they aren’t gambling with their company’s future. But experience doesn’t equate to competency, which is why some employers elect to hire for potential. POTENTIAL The argument for hiring based on potential centers around two concepts. One is that by hiring someone with a bright future and helping them achieve their goals, you could gain the loyalty of that person and thus retain that employee for a longer time. This comes with the caveat that those who have potential also look for potential, so as an employer, it’s important to provide opportunities for advancement. The other argument is that potential combined with training can equate to a more effective employee in the long run. In truth, the disagreement that transpires is a moot point. You can hire someone with experience or an individual with potential and strike out just the same. All successful employees will have one important trait: passion. You can’t teach passion, but you can hire for it.

THINK LEGAL PROTECTION REQUIRES MOUNTAINS OF PAPERWORK? THINK AGAIN

One of the common misconceptions I hear about legal protection is that it will require you to put together a mountain of paperwork. In my experience, this couldn’t be further from the truth. Just because the status quo is set at overly- complicated contracts doesn’t mean it needs to stay this way. THE MYTH: Securing legal protection for your business will require a mountain of paperwork. THE REALITY: A good contract should be straightforward and accessible to all parties. The days of using outdated and superfluous language and grammar in contracts are gone. Contracts that feel like a burden don’t just give the signer a headache as they pour over the muck; they lower the chances that they’ll get

signed at all. When getting your product into the market is at a premium, you’re making it a whole lot harder on yourself with contracts that can’t be reviewed over a business lunch. If you need proof, take GE Aviation’s implementation of plain-language contracts as a case study. Over a few years, their team revamped the way they drafted contracts, aiming to make documents even a high schooler could comprehend with little context. During this process, the legal team had to ensure the contracts were still air- tight. Since implementing these plain- language contracts, they’ve signed more than 100 contracts that took 60 percent less time to negotiate. Customers are happier with these versions, giving positive feedback across the board and making far fewer changes, and in some cases, no changes at all.

Isn’t getting your customer or investor on board the whole idea? Vague, ambiguous language doesn’t make anyone feel agreeable or cooperative. Use friendly, accessible language, presented in a straightforward package — this is one reason we recommend digitizing contracts — and your success rate can be much higher. The attorneys at Reib Law are pros at constructing contracts that are not only straightforward, but actually enjoyable to read. In fact, our members have access to tons of legal templates, including templates that can help you stay protected. Email [email protected] to set up your free 30-minute session with Scott or another member of our team to make getting that contract signed a whole lot easier.

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5 DETAILS TO COVER IN EVERY CONTRACT

A s you well know, contracts are the lifeblood of small businesses, which means that you want to make yours not only solid, but also straightforward and clear. Missing details can turn a contract into fodder for disagreements, so it’s better to spell it out clearly now. Here are five things you’ll want to include in any contract. 1. DEFINE WHAT YOU WANT TO PROTECT. You’re probably going, “Duh!” But it’s amazing how, when you don’t write it down, things get missed. The devil is in the details. Make a list, check it twice, and make sure your partner or client is aware of what the contract covers — especially when it comes to money. Write it down, highlight areas involving money, and make sure both parties know what’s expected. 2. CHOOSE WHICH STATE LAWS WILL BE APPLIED. If the entities involved live in different states, you get to choose which states’ laws will apply to the contract. Generally, choose to go by the laws for the state you live in, and stipulate that any litigation happens in your legal backyard.

3. WHO IS INVOLVED? Again, “Duh,” and again, too many people have had issues because of this. For example, you look at the top of the contract and notice your personal name is listed instead of your business name. As it is, that could create personal liability for anything that happens under the umbrella of your business. Make sure both parties’ names are listed correctly. 4. DEFINE THE DEADLINES. A breach of contract because of a deadline that no one could meet is a crummy thing. Go over each deadline or mention of a date, highlight these, and make sure that they are doable. 5. ARBITRATION, MEDIATION, OR LITIGATION? You don’t like to think about disputes, and hopefully there won’t be any. But the future is uncertain, and preemptively defining how you’ll address them before they happen will make them less costly and more amicable. Define how you’ll deal with disagreements — litigation is usually more expensive than mediation or arbitration.

If you have any questions as you’re working through your contract, give Reib Law a call.

1. In a mixing bowl, combine gelatin and 1/2 cup cold water. Let sit while you make the syrup. 2. In a small saucepan over medium heat, combine sugar, syrup, salt, and 1/2 cup water until the sugar dissolves. 3. Raise heat to high and bring syrup up to 240 F, using a candy thermometer to check for temperature. • 3 packages unflavored gelatin • 1 1/2 cups granulated sugar • 1 cup light corn syrup • 1/4 teaspoon kosher salt • 1 tablespoon pure vanilla extract • Powdered sugar, to coat HOMEMADE MARSHMALLOWS INGREDIENTS DIRECTIONS

TAKE A BREAK

4. With an electric whisk on low speed, slowly whisk syrup into gelatin mixture. Switch speed to high and whip for 15 minutes, until very thick. Fold in vanilla after whipping. 5. Dust a nonmetal baking dish with powdered sugar and spoon mixture into dish. Smooth mixture, top with more powdered sugar, and let stand uncovered overnight. 6. Cut into squares, decorate, and serve.

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Bike Racing and Business Success INSIDE THIS ISSUE 1 2 2 3 3 4 Legal Myths, Busted 5 Details to Cover in Every Contract Homemade Marshmallows

Debunking Experience vs. Potential in New Hires

The Surprising Origins of Trick-or-Treating

WHY THERE ARE KIDS ON YOUR PORCH ASKING FOR CANDY THE HISTORY OF TRICK-OR-TREATING A s Halloween looms and you load up your grocery cart with candy, you may ask yourself, “Why do I provide these pillowcases in hand, the Celts believed that Samuin marked an overlapping of the realms of the living and the dead. To trick the spirits leaking into our world, young men donned flowing white costumes and black masks — a great disguise when ghosts were about.

spooky gremlins with a sugar high every Oct. 31, anyway?” Well, when your doorbell starts ringing around 6 p.m. this All Hallows’ Eve, you can thank the Celts for this tradition of candy and costumes. Halloween itself is a kind of mishmash of four different cultural festivals of old: two Roman fêtes, which commemorated the dead and the goddess of fruit and trees (not at the same time); the Celtic Samuin or Samhain, a new year’s party thrown at the end of our summer; and the Catholic All Saint’s Day, designed to replace Samuin and divorce it from its pagan origins.

The Catholic Church was never a big fan of these pagan traditions, so they renamed it “All Saints’ Day” and gussied it up in religious garb. By the 11th century, people were dressing up as saints, angels, and the occasional demon instead of spirits. Eventually, costumed children started tearing through town begging for food and money and singing a song or prayer in return — a practice called “souling.” But when did they start dressing up as Minions? Starting in the 19th century, souling turned to “guising,” which gave way to trick-or-treating in mid-20th-century America, and the costumes diversified. So put on some clown makeup and a big smile, scoop up a handful of sweets, and scare the living daylights out of ‘em — ‘tis the season!

Long before there were young’uns on your porch dressed as Thanos with candy-filled

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