LEGAL MATTERS TO CONSIDER AS ONE YEAR ENDS AND ANOTHER BEGINS
Another year going. Another year coming. All in the natural course and order of life. For businesses, too.
Has your business made its 2017 resolutions — a.k.a. plans — for the New Year? (Did it make any for 2016?) If not, this is an excellent time to do so. If so, this is an equally excellent time to confirm them before the January 1 rollout, and maybe even to proofread them. One way to confirm your business’ new resolutions is to review what was achieved, missed or deferred based upon the prior year’s outcomes. In this case, from a legal perspective.
As readers of this column know, much attention is paid here to proactive risk management. Simply put — and truly from a business lawyer’s vantage point — it is more effective, efficient and economical for a business to consider the array of competitive, financial, and regulatory challenges — a.k.a. opportunities — it could confront over time. This way a business can develop nimble policies, procedures, means and methods in order to be well-positioned to respond to new fact-sets requiring flexibility.
So let us agree here to “stop” (just for a moment), to “look” (retrospectively at what has been accomplished to-date and is yet to be achieved), and to “listen” (prospectively to the emerging business environment). These predictive activities can certainly be optimistic in spirit and tone. However, from a risk tolerance perspective, it is a better practice to keep an open eye towards appropriate downside planning so your company is ready if things do go “bump in the night.”
FINANCIAL MATTERS
Have you met with your commercial banker and other investment advisors to ensure your company’s financial assets and overall “health?” Are they where they should be given the nature of the enterprise, the market and the overall economy? And are you consulting with your book-keeper or accountant regularly to be sure your business’ “numbers story” is up-to-date, accurate and coordinated with its tax intentions?
HUMAN RESOURCES
Have you (do you) periodically review your employee personnel “jackets” for completeness? Do you check your employee form documents and policies and procedures manual so they are up-to-date?
COMPLIANCE
There is so much baked-in here, so we will focus on just a few key areas. Do not, do not forget to file your Annual Report with the Division of Corporations, or you could be faced with a large late fee. Or worse, an administrative dissolution. Similarly prepare your business for its federal tax filings, employment taxes and sales taxes. Another matter to calendar is to renew and update your licenses. Remember to do so – when applicable – for your company and for your employees who have to be licensed to legally do their work. If your company or its employees have voluntary certifications or designations from trade or professional organizations, it is a good idea to update those, too. You likely cannot market using those certifications if they are not active. Speaking of licenses, be sure to review your operating licenses with franchisors, software providers and other vendors and business partners. And, as a (sort of) final note in this area, be sure to properly make any required reports to regulators, which are specific to each field of endeavor (one example being trust or escrow accounts). While compliance is more of a cost center than a profit center, there is, indeed, a lot to keep up with in this domain. It is better to be efficient about these tasks.
OBLIGATIONS
When was the last time your company reviewed its contracts to check performance status, deliverables, payments to receive and to make and whether they need to be renewed or extended? Or perhaps terminated, if that can be done without a negative consequence? It is time, then, to open up the big file cabinet drawer, and invest some effort (even if that activity is “unfun”) into self-auditing this central aspect of your business. (Of course… you could always use your lawyer to do that for you.)
RISK MANAGEMENT
There are so many references to this matter in just this one article. It must be somewhat important. It is time to get with your firm’s insurance agent to consciously review the coverages and limits of your policies. Does your company have what it actually needs, or do you have policies that do not support your operation’s loss prospects? Can you financially afford the policies you need, you currently have, or which you may need as you grow your enterprise? Do your coverages scale-up with your company as it evolves and expands over time? Have your own vendors and suppliers provided you with evidence of the insurance you want them to carry? And a quasi-compliance issue – have you renewed your workers compensation insurance or properly renewed your exemption if you are eligible for one?
RESILIENCE
Already once in this article the notions of business nimbleness and flexibility were mentioned. It is fine to suggest the importance of those traits, but are your company, its management, employees, independent contractors, vendors and professional support stakeholders actually able to help your enterprise adapt to market and economic disruptions in a fairly seamless manner. Here is a time when it can be useful to have independent outsiders with “no dog in the fight” to review your company’s range of operational plans with management so the business is better positioned to move agilely when it needs to do so. There are certainly a variety of third-party consultants available, as well as your business’ lawyers and accountants. Also, do not forget such community players as the Santa Fe College Center for Innovation and Economic Development or the Service Core of Retired Executives.
Remember there is a fresh new business world after the clock strikes midnight and rings in 2017. Cheers and best wishes for a productive, successful, and enjoyable year ahead!
For more information, call Philip N. Kabler, Esq. of the Gainesville, FL office of Bogin, Munns & Munns, P.A. at (352) 332-7688, www.boginmunns.com/gainesvillelawoffice, where he practices in the areas of business, real estate, banking and equine law.
*NOTICE: The article above is not intended to serve as legal advice, and readers should not rely on it as such. It is offered only as general information. Readers should consult with an attorney regarding their legal matters, as every situation is unique.
PHILIP N. KABLER is an Incubator Resource for the Santa Fe College Center for Innovation and Economic Development (CIED), will be teaching a Fall Semester 2016 course at the UF Warrington College of Business Administration’s Master of Science in Real Estate program, and has taught various courses at the UF Levin College of Law and at the UF Warrington College of Business Administration (undergraduate and graduate. He is also the current president of the North Florida Association of Real Estate Attorneys.