Whether you are negotiating a contract with a new customer or making an agreement with a supplier, there are some common mistakes that business owners make that can make a good deal go bad. Don’t let any of these errors blow your next business deal:

Failure to understand the scope of an agreement. Both parties need to clearly understand the scope of an agreement, especially if it involves the licensing of intellectual property and the rights a licensee is granted under the agreement. Be explicit with partners about what they are getting.

Underestimating costs. Most business owners know the cost of delivering a product or service to a customer, but not considering ongoing costs that could occur down the road can make this an unprofitable deal for you.

Lack of guidance. Having a great board of advisors can help company owners get deals done. Just make sure they are properly protected and that their roles and compensation are spelled out.

Inexperienced legal help. Don’t rely on legal advice from the attorney who helped you buy your house or handled your divorce. Federal and state business law is complex and your company needs to receive proper legal guidance from an experienced business attorney.

Cutting corners. Business owners – especially new entrepreneurs – can be tempted to cut corners when hiring the right help to get a deal done. This can cause problems for you down the road if you skimp on legal advice, since it is often more costly to unravel a mistake than it is to do it right the first time.

Johnson Legal PC founder Adrian Johnson, Esq., worked on Wall Street for many years, where he bought and sold over 100 companies. He has built his law firm with experience and technological savvy to ensure clients have 24/7 access for their business legal needs. Contact us to learn more about how a great corporate attorney can help your business thrive.