Picture this. You’re a small business owner just getting your operation off the ground, quickly putting together your new website, and the marketing materials. You also need a way to process payments, and manage your customer database, and ensure you’re tracking all of the above. But getting a business off the ground isn’t cheap, and all of a sudden, your war chest is looking a little bare. Lucky for you, there are plenty of options out there to help you out, from AI platforms to walk you through each process step-by-step to design programs that take your logo and turn it into a brochure or packaging materials. So you upload your materials, click “accept” on the terms and conditions pop-up, and start crafting the content.
Unfortunately, without even realizing it, you may have accepted terms that give the platform more control than you expected. And while it’s bad enough that your company logo could potentially be farmed out, iterated on, and even directly copied - imagine you did the same, but with payroll data, customer records, finances, employee records… The list goes on. A simple “click this box to agree” only takes a second, but the repercussions could sink your business, or worse, give it to someone else. The issue isn’t that every vendor is out to steal your creations, but that many small businesses aren’t fully cognizant of what they’re even agreeing to in the first place. And this doesn’t just apply to “free” platforms, but paid ones as well: CRMs, payment processors, payroll systems, storage providers, etc.
Businesses small and large will often spend countless hours on selecting the right platform or application for the task at hand, comparing pricing plans and feature lists and pouring through reviews and testimonials. While diligence like this is obviously fundamental to the process, one area that rarely gets a deep dive is the contract. Choosing a vendor isn’t just a cost and convenience decision, it’s a legal one, and understanding the terms is just as important as understanding the product itself.
The three main pillars that business owners should be mindful of when looking through these contracts are intellectual property rights, data and compliance, and liability and security. Details like who owns the rights to the uploaded content, what happens in the event of a data breach, and who is liable are important to pay attention to.
Many of these terms and contracts are lengthy, complex, and filled with legal and technical jargon that can be difficult - or too time consuming - to properly dissect. When a new business owner is already overwhelmed trying to juggle the myriad moving parts that come with getting a company off the ground, it’s easy to just hit “I accept” without thinking twice. This is why having a professional review them before you sign can save significant time, money, and headaches down the line.
At the end of the day, choosing a new platform or service is about more than features, cost, or convenience. Every platform you bring under your umbrella becomes a part of your business, and the agreements you make with these companies can have significant implications for your intellectual property, customer information, and employee data. Take your time, read through each section carefully, and when in doubt, don’t hesitate to bring in a professional.