Thursday, November 28, 2019

Why Does Business Needs To Have Knowledge on Various Documents?



"Never forget that you have only one chance to get first impression-with investors, customers, and marketing."  - Natalie Massenet

· Your Business Documents is the lifeline of your business operations
· Poor documentation is devastating for the company reputation.
· Users need less than a minute to make a decision about the documentation and therefore about the product.

     It's a huge task to start a new business. A business owner cannot afford to make any errors in early-stage as a petty mistake or an uncalled decision can make them suffer for a really long time and live in resentment.
      One of the most difficult parts of starting a business, and one of the least intuitive, is the drafting proper business documents.  Because you need documents to start, operate and expand a business.


What are Business Documents?
       An enterprise’s business documents include invoices to customers, price lists, offers, Employee offer letters, etc. In addition to information about contractual terms and conditions, the legal form of the business, the company's location, its corporate identity number and VAT number also make up the business documents.
    A company uses documents to communicate, conduct business and assess its performance. Business documents range from complex legal agreements to brief email messages. Business Documents play an essential role in protecting the interests of the business and business owners over the course of a company’s lifetime.
      Since documents provide proof of an organization’s dealings and may be referred to for years to come, So It is important that they are well written.

Why it is important?

Written agreements make things easier
       A written agreement makes things easier for the seller and the purchaser, and reduces the risk of the parties interpreting the content of the agreement differently.
    It is easier to specify details about the product or service and other contractual terms and conditions in a written agreement. It may be difficult to remember the terms and conditions and even more difficult to prove them in the absence of a written agreement.
        Business records are often part of the image and advertising of your company. The company will use many business documents, such as invoices and deals, several times.
       The content of business documents can also form the basis of the contracts that your enterprise enters into with customers, suppliers and other parties.

Benefits of Proper Business Documents

Documentation instils trust within your business
      Documentation tells the story of a business; its origins, intent and the journey it’s taking to achieve its ambitions. Contracts serve as a gateway through which your business can enter new markets and expand its reach; other paperwork validates your current position and gives your investors and customers assurance.

Documents unlock opportunities
        Official records and up-to-date paperwork projects an excellent image of a company – with more than just the relevant regulatory bodies. Opportunities to secure lucrative contracts, subsidies and various opportunities are inextricably linked to the quality of the documentation.

Here we are providing some of the lists of necessary documents to facilitate business

Docs to Facilitate Inside Operations

Board Consent: Any startup should operate with their board's cooperation, and in order to do so, you should set up a standard mechanism by which the board's consent is obtained. This can a number of different forms, so make a decision based on your circumstances.

Operating Agreement (Founder's Agreement): This is one of the standard forms to be completed before any major business is completed. Founder and co-founder conflicts are inevitable, and they are much more complicated and chaotic when you don't have a clear understanding of initial ownership splits, who brought to the partnership which property/skills, who controls initially IP, and so on.

Technology Assignment Agreement: proprietary technology development is often part of a start-up environment, making it vital to have a standard the form that assigns IP rights to any technology developed for the business to the business.

Docs to Facilitate Outside Operations

Employee Contracts and Offer Letters: Such documents are often considered a luxury for new businesses. In order to prevent future misunderstanding between the employer and its employees, an employment agreement is used to determine the set of obligations and expectations between the two parties. Using employee agreement templates, you can set a contract that will prevent an employee from leaving the company too soon

Non-Disclosure Agreements (NDAs): NDAs protect new businesses in lots of ways.NDAs also gives you the freedom to ensure that your current workforce does not go to a competitor and take your business with them. Use early and frequently.

Business Letters for Outside Communication
Business letters are used to communicate outside the office with individuals. Recipients may include clients, other business colleagues, service providers, and business counselling professionals, government officials, and job applicants.

Transactional Documents to Conduct Business with Clients
    To transact business with its clients a company uses documents. These documents may be formatted as a form, such as an order form, transmittal page, invoice or receipt for saving time. The types of payment documents used vary slightly depending on the nature of a company.
      A company uses documents to communicate with its clients. These documents can be formatted as a form, such as an order form, transmission page, invoice or receipt, in order to save time. The types of transactional documents used vary slightly depending on the nature of business. Companies enter into agreements and contracts with others in other fields; these papers could be drawn up by the attorney of the organization.

List of all type of documents
a)      Agreement between Independent Contractor and Service Provider
b)      Appointment Letter for Non-executive Independent Director
c)       Appointment Letter- Startups
d)      Articles of Association (AOA)
e)      Board Minutes
f)       Consultancy Agreement
g)      Contractor Agreement
h)      Employee Offer Letter
i)        Employment Contract
j)        Founders’ Agreement
k)      Freelance Contractor
l)        Hiring Employees and Processing Payrolls in Startups
m)    Letter of Intent
n)      Letter Proposing Payments in Installments
o)      Loan Agreement
p)      No Objection Certificate (NOC)
q)      Non-Disclosure Agreement
r)       Partnership Deed
s)       Purchase Order
t)       Rental Agreement
u)      Resignation Letter- Startups
v)      Sales Agency Agreement
w)    Services- Terms and Conditions
x)      Shareholder’s Agreement
y)      Website or Mobile App Privacy and Refund Policy

Summary
      Whether you are running a small or big business, a limited company, a general partnership, or a major corporation, securing all the business documents stated above is highly beneficial when opening your business. Generally, the majority of people tend to form their opinion about the enterprise and its products based on the quality of the company’s documentation. To help them meet their needs, you need properly-structured documents to help shape the company's best image.
      Since the documents are part of the image of your business, it may be worthwhile to put some time and effort right from the start to produce good models for them.

Address: Unit No.450, Mastermind One - IT Park, Royal Palms, Aarey Colony, Goregaon(E), Mumbai, Maharashtra 400065

About Prakash Bhosale:- 


Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

Phone: 08355979232, 09867806399

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