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A Deed Or An Agreement

The decision on whether to use a deed or an agreement can make a significant difference to the success of a transaction or project.

Both document types are used to prepare contractual arrangements, with each having its own benefits. Understanding the differences and making an informed decision can significantly impact the success of a transaction.

An agreement (or contract) must meet the following pre-conditions to be valid and enforceable:
• Each party must have the intention to be legally bound.
• There must be an offer from one party that is accepted by the other party.
• Consideration must flow between the parties.

For a deed to be considered valid and enforceable, it must:
• Be signed, in writing and witnessed by a person who is not a party to the deed.
• Use wording that indicates that the document is a deed i.e. ‘this deed’ or ‘executed as a deed’ and ‘signed, sealed and delivered’ should be used in the execution clauses. The wording in the document must be consistent.
• Be provided to the other party or parties.
• Having supporting evidence that the parties intended the document to be a deed and are bound by it.

The main difference between an agreement and a deed is that there is no requirement for consideration to make a deed binding. This is because of the idea that a deed is intended, by the executing party, to be a solemn indication to others that they truly mean to do what they are planning to do or are doing. A deed is considered to be binding on a party when they have signed, sealed and delivered the deed to the other parties, even if the other parties have not yet executed the deed document.

Each state in Australia has specific legislation regarding the period of time in which a claim or action can be lodged, following the breach of an agreement or deed. A claim following a breach of an agreement must be submitted within 6 years of the breach occurring. The period is longer for those who make a claim following a breach of the terms of a deed. Since the length of time usually depends on the law of each state, it is important to have a jurisdiction clause in your deed or agreement.

How To Handle Staff Resignations

When an employee announces that they want to resign from their position, it can be inconvenient and disruptive for the business.

Suddenly, the business is faced with a number of things that must be considered – how will the former employee’s responsibilities be covered? How will the team be affected? How should the business go about hiring and training a new employee? While it can be inconvenient dealing with these changes, there are ways to learn from the situation and encourage a smooth transition.

Identify why the employee is leaving

Employees often resign for personal reasons such as moving away, changing careers, or new commitments, however, there are cases where the employee may have an issue with the company itself. Perhaps they are dissatisfied with internal career advancement opportunities, are unhappy with the workplace environment or other staff members, or feel overworked and underappreciated. Understanding the internal problems the employee may not have wanted to admit prior to their resignation can be an opportunity to make improvements that will benefit the future of the workplace environment.

Conduct an exit interview

It can be beneficial for both the employer and employee to conduct an exit interview, where these reasons for resignation can be discussed and the employer can assess whether any changes should be made within the company based on this feedback. This could also be an opportunity to ensure all relevant matters between the employee and the company are settled before they leave.

Make a hiring plan

Hiring a new employee can be time consuming and stressful, so it can be useful to plan guidelines, recruitment tools, goals, and time frames to keep things on track. This can also help you better prepare for the interview process as you know going in what you are looking for in a new employee.

Reassure the rest of the team

Having one less employee can make the other staff feel overburdened with the extra workload. Talking to the employees and acknowledging this problem can help maintain morale and reassure them that this is temporary and they are being appreciated.

The Elements Of A Sale

The purpose of the sales process is to effectively convey the benefits you offer to a prospective client.

There are many elements that go into a sale, each being as in depth and important as the next. Setting realistic sales targets can help you meet your overall business goals. Sales techniques are used to convert more potential customers into paying customers, and while the closing of a sale is the end goal, maintaining a good relationship afterwards is crucial. Sales are all about a cohesive strategy and execution.

Before the sale

Every business is different and sales goals will vary depending on the different stages of the business cycle. Setting sales targets in areas that will boost growth and development will help direct and prepare business owners for the sales process. Sales targets will vary according to seasonal factors, marketing, production and supply costs. A good way to work out a sales target for your business is to calculate the minimum requirements. To determine your minimum sales requirement, work out how much you need to sell to cover fixed costs, your salary, and desired profit. Sales targets need to be realistic and take into consideration external factors, such as the economy, competition and volatile markets. These variables will significantly impact sales goals and therefore, it is critical to constantly monitor the business’ environment to adjust sales targets accordingly. Setting goals purely based on the previous year’s sales can be damaging to a business and lead to over-ambitious sales targets.

During the sale

A sales prospect can usually identify when a salesperson is running off an agenda. This approach can appear insincere and impersonal, thereby creating the opposite effect and driving the prospect away. Instead, ask about the prospect’s concerns and challenges by asking them questions to see if your product/service is suitable. Find out what is important to them and their expectations. If your products/services are a solution for them, pitch to them or provide alternatives. Do not expect that your product or service is going to be a solution for everyone. Value is a critical factor in a prospect’s purchasing behaviour. Using value-based selling can be helpful in generating more sales as it focuses on addressing the prospect’s problems by showing them the benefits of your product/service. Furthermore, providing examples of results, client testimonials and so forth can demonstrate more value to the prospect.

After the sale

Once the sale is complete, you will still need to look after your customers. Businesses with excellent customer service have an increased chance of maintaining and increasing their customer base. Following up after a sale demonstrates a continued interest in your client which can then create future opportunities, either from a returning customer or through referrals. Creating a referral program where the referring customer gains a discount or reward is a good way to boost your word-of-mouth marketing. Not only do you benefit from the new customer but it gives your existing customer an incentive to spread the word.

You may also consider creating a formal customer service program to ensure all customers receive the same level of service. Train, encourage and support your staff to help implement the program. Well-trained staff are your first point of call in ensuring your business has happy, satisfied customers.

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Today’s financial environment demands a regular review of strategy and a focus on execution.