Legal Resources For Creatives | What you need to get sorted, and why!
As a lawyer who works with a wide range of creative professionals, coaches, and consultants, I frequently encounter the same legal questions and challenges from my clients. To help more business owners navigate these issues successfully, I've compiled these legal resources for creatives that will ensure you are setting up your creative business for long-term success.
1. The Power of Tailored Client Service Agreements
One of the most potent tools in your business arsenal is a well-tailored client service agreement. This document is not just a formality; it’s a safeguard that can prevent numerous legal issues down the line. Here’s why it’s important to invest in a customised agreement, tailored for YOUR business:
Avoid Generic Templates: No two businesses are the same, so your legals shouldn’t be treated as a one-size-fits-all. Templates found online or copied from friends are not tailored to your business, don’t take into account how YOU operate, and are unlikely to address what needs to be addressed to protect your business. This will leave your business exposed to risk and liability.
Industry-Specific Risks: Working with a lawyer who specialises in your industry is key when it comes to identifying common pain points and industry-specific risks. This means you can address these in a seamless way, to set your business up for success with agreements that will work for you.
Unfair Contract Terms: Just as there are provisions and clauses that need to be included, there are terms that can’t be included, and these are known as Unfair Contract Terms. If you unwittingly include terms on your agreements that the law will consider unfair, not only are you running the risk of your entire agreement being void, but there are penalties that can apply. Knowing what to include in your agreements and what not to is key. To dive deeper into Unfair Contract Terms, you can listen to Episode 167 of the Rise Up in Business podcast.
2. The Importance of Processes and Systems
Having your legal documents drafted properly and tailored for your business is one thing. Implementation is another. Here’s what you need to consider:
Proposal - after the discovery call, ensure your proposal/quote/scope of work steps are swift and thorough.
Engagement – know how you are engaging your clients when they say Hell Yes to your proposal.
Are you providing your Ts & Cs with your proposal documents, or are you issuing a separate client agreement? Each to their own here, there’s no right or wrong provided you get the sequencing right.
If you use a CRM like Dubsado, consult a lawyer for creatives who knows the Australian Consumer Law obligations inside out (aka – me!) so you don’t miss an important step here and end up with legals that can’t be enforced (which is what can happen if the sequencing isn’t right).
Regardless of how you are legally engaging your clients, get the sequencing right, have the wording right in your emails or your proposal documents, so you can have peace of mind knowing everything is being done in a way that is legally binding.
Project Phases and Milestones: Be crystal clear when outlining project phases/stages, deliverables, and payment schedules. Keep your client informed and updated and be clear with what you require from your clients and when (think revisions, sign offs and approvals – make sure they know what’s expected of them).
Handling Changes: Know your variation request processes and stick to them. Clearly outline how changes or variations will be managed, and be consistent with these along the way, always taking care to ensure the client is aware of fee increases, additional charges and so on. This not only helps avoid surprises when you issue invoices, leading to challenges and delays in payments, but it positions you to manage, meet and exceed your client’s expectations throughout the entire client journey (and that’s a win-win).
Regular Communication: Always maintain clear and regular communication with your client – I honestly can’t say this enough. Setting yourself up for success with your client requires clarity and consistency.
3. Protecting Your Intellectual Property (IP)
Your IP is your gold as a creative business owner. Ensure it’s protected.
Ownership and Licensing: Have clear terms in your client service agreements that deal with ownership of the IP you are creating. Specify who owns the IP, the terms of any licenses for permitted use, and what the client can and cannot do with the work.
Trademark Considerations: If exclusivity over a name or phrase unique to your business is important to you (such as your business name, your tag line, or a course or podcast name), explore the possibility of trademarking. This is a complex area but well worth taking the time to understand you options here. For detailed guidance, learn more about my Masterclass Series here.
4. Risk Mitigation Strategy
You have no doubt heard me say this a million times, and there’s good reason for that! In business, prevention is better than cure. Every small business needs a solid risk mitigation strategy, and you need to be familiar with yours and confident that it is designed to suit your specific business. Your risk mitigation strategy will include:
Business Structure: Ensure your business structure is right for your business and supports your goals and objectives. If your business is in a high risk industry, or if asset protection is important to you, seek advice around whether a company structure is right for you.
Insurance: The question isn’t whether you need insurance, but what type you need. Work with an insurance broker to get the right insurance in place that serves and protects your business.
Legal Documents: The third vital pillar to every risk mitigation strategy is legals. Robust legals, tailored properly, are worth their weight in gold. Truly. There are no shortcuts here, and frankly, you can’t afford to get this wrong.
By focusing on these four key legal resources for creatives, you can set your business up for long-term sustainable success, achieving real peace of mind, and you can use this platform to grow and scale your business with integrity.
If you would like to hear more about these legal resources for creatives, I talk more about this in Episode #171 of the Rise Up in Business podcast.
I’m ready to support you, so be sure to reach out here if I can be of service to you in your creative business.
