The Importance of Being Ernest

I got my first car at 16...it was a used hatchback my father purchased from our neighbor down the street. It was only $3,000 and I promised my mother I would pay them back. I remembered being so thrilled when they said yes.

A successful business woman, the evening before my big purchase my mother handed me a short contract to sign regarding what I agreed to and the terms of payment. She knew me all my life...I was responsible and even at 16 I'd had a steady job for almost 2 years. Where was the love???

Years later I deeply understand the need for contracts and agreements. While managing a high end label I once chased one of the most exquisite boutiques in New York for over 4 months just to pay their bill-- on product they'd probably already sold. They finally paid the flat amount....no interest...no penalties....no financial regard for the endless phone calls...letters and other administrative costs it took us to collect payment on terms that we "believed," we'd agreed to.

My point is that in this industry it is easy for us to get infatuated with each other. People are impressed with each others offices, soho boutique addresses and that they carry $2,000 miu miu bags. That goes a long way with us. But it should only go so far.

As a result people get screwed...they get pissed! They decide to never sell to that boutique again...or buy from that designer again...or deal with that supplier again. Relationship over everybody moves on...bitter and through!

It's unfortunate because most of the time a violation of trust is simply a violation of "understanding." Well drafted, simple contracts and agreements help everyone to understand, set expectations and literally puts all parties on the "same page." Good agreements are nothing to be scared of.

I encourage you to swallow that one uncomfortable moment with new buyers and walk them politely through your terms of sale..... With vendors after you've come to an understanding on price and deliverables provide them a written explanation of what you expect...why not?

Fear that's why....If you're new all this may seem a little over the top. People often get uncomfortable with contracts...they need to have their cousin's husband who's a lawyer to look at it....they have to find a lawyer. It seems like it may be more trouble than it's worth. The worst feeling is when the other party gets uncomfortable with you. I mean how do you do business with someone you don't trust?

The Answer According to Donald Trump: Never do business with someone you don't trust. I agree (as if he needs that).

However, with a contract you are simply outlining the trust. It doesn't have to be a book....it doesn't always have to be "from," or "looked over," by an attorney. Legitimately you could scare people off especially for a smaller project.

But you have to write something...however brief it has to be an understanding. A clear understanding that both parties are willing to agree strongly enough that they pick up that black pen and they say. Yes, this is what I said I will do. Where do I sign!

An ounce of prevention is a pound of cure...when it doubt write it out.