Does Money Change You?

I do not believe money changes you, however, it certainly changes the people around you. Use purchase orders and contractor agreement contracts from the start of your business.

Purchase orders can be created out of any accounting software program such as QuickBooksâ or Peachtree. A purchase order is a written authorization for goods and services, specifying the price and terms of payment. This is a legally binding contract once accepted by both parties. I would advise to use this method for all expenses unless you are using a company credit card for items like hotel room, trade show reservations, etc. Make sure you use a purchase order for the manufacture of your product.

Remember, you are a boss or business owner first. Personal relationships can easily cloud your judgment when you are inexperienced. When I was away exhibiting in almost monthly trade shows, I delegated the responsibility to order office and shipping supplies to a trusted employee. I found out later that the supply companies often offer gifts for certain levels of purchases. As a result, the employee would order $150.00 worth of supplies when we needed much less in order to receive a free small TV, radio or such. Employees left unchecked often will spend a lot of your hard-earned money. Months after discovering this ordering scheme, I still have enough pens and other supplies to last me for years to come.

When you hire an independent contractor, be sure you prepare and have a signed contractor agreement. If you do not have such an agreement in place you may not own the material produced by the contractor. This applies to such items as your web site, brochure, photos of your product, and even your company logo.

On the search engines, such as Google, you can find examples to download free for use simply by typing the terms work for hire and contractor agreement contract. I also advise you to use a purchase order with all the terms clearly spelled out. In the case of graphic artwork, make sure you have a disk of all artwork delivered to you before payment. Always specify that your company will own all rights to the material produced under the agreement.

It is advisable to file copyright protection on your company logo and other important artwork.

When some accountants, lawyers, and graphic designers, etc., see money coming in, you may experience a sudden increase in their fees for services rendered. You need to guard against this no matter how well you think you know them or how long you have been doing business with them.