I’ve been running into several clients and friends that have been telling me horror stories of how they were ripped off or lost out heavily due to some disagreement they had with a business partner, client, or someone they hired. The first question I asked each of them was “did you have a contract agreement in place?” And each time, I was greeted with either a shocked expression or one that looked like a beaten puppy. None of them could say yes.

Today’s market world now runs heavily on “friendship”. Social media has brought about a new wave of humanizing companies. We now know the names and even personal details of people that were once inaccessible. Suddenly, everyone “has a friend”, “knows someone”, or “is networked with” a person or a group of people that can solve your problem, whatever it may be. And that sense of “friendship” also brings about an immediate sense of trust. Contracts or written agreements are no longer being used because the mentality becomes “hey, it’s my friend and suggesting a contract would be rude.”

I am here to tell you that it’s not rude and business (friendly or not) should still remain business-like. Even though business practices are changing, one thing remains the same. Words have no real value unless they become visible for all to see. Without a written agreement in place then you and the other party are left wide open to the missed communication battle of “his/her word against mine” which can eventually lead to lost time, lost production and non-recoverable funds. And that person who was once your “friend” is now yelling “I’ll see you in court!”and you feel like a shocked and beaten up puppy.

A misconception that a lot of people have about contracts is that they cost money in order to be legal. This is no longer true. With the internet we now have access to loads of contract development companies like agree2.com or onecle.com that provide us with free templates and services to help us all get on the same page. Also, well documented emails can now double as contract agreements. Stating in your email details of what is expected of both parties, the dates upon when things were discussed and a sense of “it’s cool with me if it’s cool with you” are recognized as legal documents and are admissible should you ever actually have to go to court. I conduct 98% of my business through email and you will not find a phone number on my business card for this reason.

Putting a written agreement in place while you are still friends keeps business between friends, friendly. And without one – you may want to get ready to live in the doghouse.