The 7 Minute Online Business Audit - Make your next 12 months the best yet!
Whether you are just starting out or have been in business for years, it is a good idea to annually audit what is working and what isn’t working, particularly in areas where there is legal and financial risk. Often in business we are so busy that we can overlook some of the core elements that help minimise risks and issues with customers or clients that can chew up time and energy and money. This online business audit is specifically for business owners with any degree of online presence. You may sell products via your website or other platforms, offer services through online methods or any other online or digital offerings, or just have a website and nothing else in play. This online business audit focuses on minimising your risk from a legal perspective.
Just as you might review home loan interest rates or insurance policies to make sure you’re making good decisions with your personal finances, so too is it wise to review key elements in your business to ensure your finances and interests are well protected.
A business audit can lead to examining other aspects of business. A range of business templates linked below:
Now is the best time to undertake our seven minute online business audit. Why? Because you will want to avoid some of the more stressful and costly issues that regularly come up for business owners with an online presence, so you can maintain laser focus on your business goals and the opportunities ahead.
Online Business Audit Item 1 - Business Structure
Whether your business was originally set up as a sole trader, partnership or a company, it is wise to revisit whether the structure you have is the best structure for you today and for the next 12 months ahead. It’s always helpful to get a clear picture of the pros and cons of other structures because, as businesses grow there are often stronger options that will more effectively protect you and your business.
As a business grows, so does its risk and the goal is to avoid having your personal assets at risk. The other component that is often overlooked in partnerships is minimising the risk to your business if you or your business partner were ever to fall sick, become injured, die or go through a divorce.
Which of the following represents your business needs today?
⬜ Our current structure suits where we are and where we’re headed in the next 12 months.
⬜ This is something I/we should investigate further.
Online Business Audit Item 2 - Website
It’s not uncommon that website privacy policies and terms of use are either not functional (for example, when you click on the link it doesn’t work), or they are out of date and do not reflect the business you have now.
If you do not have website terms of use or a privacy policy on your website, or you have copied and pasted terms from somewhere else, you will need to address this issue to minimise your risk of legal and financial consequences.
If your site has outdated or ‘borrowed’ terms of use or privacy policies you run the risk of not being adequately protected for your specific business.
If you have an ecommerce or online store, you will require more detailed terms and conditions that should be agreed to at the point of purchase.
If you sell products online, ensure that your current terms cover you for the products you offer today. Often when people first set up their business their terms of use only take into account the product range you began with. Different products can present different types of risks.
Has your product range expanded since you first started?
If you’re not sure if your terms of use and privacy policy are out of date, organise to have yours reviewed. Then you will know if what you have in place is sufficient, or if it needs some tweaks or a rewrite.
Related: Disclaimers for businesses with an online presence - what they are and why you need them
Which of the following represents your business needs today?
⬜ Our website terms of use (and online store terms and conditions if needed) are up to date and match back to the product range we have currently.
⬜ We need both website terms of use and online store terms and conditions
⬜ We don’t have website terms of use/online store terms and conditions in place so need to prioritise this.
⬜ Our website terms (and online store terms and conditions if needed) need to be reviewed.
⬜ Not sure. We would benefit from a website audit and review.
Online Business Audit Item 3 - Online course or membership
A review of your terms for your online course or membership is necessary if you:
already have terms in place;
you have since made changes to price points, added installments as a payment option or changed the way you accept payment;
have changed the structure of an existing course or membership; or
have added a course or membership since you got your original terms sorted.
Online course creators and those that have a membership or subscription model rarely anticipate that people will ask for refunds or renege on their monthly installment payments as often as it occurs, even when the content is brilliant!
Even if you provide your online course or membership for free, comprehensive and up to date terms and conditions are necessary. As mentioned earlier, if you borrowed or copied the terms in place now from elsewhere, you’ll need to ensure that what you offer and how you offer it (such as the use of third party platforms) should be included to protect you against a claim and other risks.
Dealing with the issues that arise for online course or membership owners can be a big energy suck. Terms of Use that are enforceable will save you headaches.
More tips: Online Courses in Australia - The Top 5 things to include in your terms and conditions
Online Memberships & Subscriptions in Australia - The Top 5 things you must include
Which of the following represents your business needs today?
⬜ We don’t have terms in place at all / We borrowed terms from elsewhere, so we need to get this protection in place.
⬜ Our online course terms/online membership terms are comprehensive and up to date.
⬜ There have been changes made or some time has passed since since our terms were first done. It’s time to have them reviewed.
Online Business Audit Item 4 - One on one client work
Whether you offer one-on-one coaching or other client work, you will know that sometimes, clients can have their own ideas about what the outcomes will be as a result of engaging your services.
Sometimes a client’s perception does not match what you know the service to be. When clients have expectations that are outside of the scope of what was agreed to, this creates issues for you both. Where the details of the arrangement are not abundantly clear to both parties, you may face challenging conversations or email exchanges, or you may find yourself over delivering to avoid further issues and meet their expectations.
You will know that sometimes people and businesses will not get the results they desire because of inaction on their part. Or, they may not fulfill their obligations in the time frame required, to ensure targets or objectives can be met.
Can you control what a client perceives are the expectations?
Can you control dissatisfaction of a client, when it is them that has not fulfilled their obligations?
To manage expectations effectively, the obligations of one or both parties to the engagement need to be clearly detailed in a Coaching Agreement or Client Agreement. When there is a contract between you that adequately covers obligations and expectations, that you both agree to, reduces the likelihood of misconceptions, hard conversations and scope-creep. It also increases the likelihood of a positive working relationship from start to finish.
Related: Setting up a Coaching Business - The legalities to consider
Keeping it confidential: When to use a non-disclosure agreement
Which of the following represents your business needs today?
⬜ I have a coaching/client agreement that reflects the way in which I currently deliver this service.
⬜ I do not have a coaching/client agreement in place. It’s time to get one.
⬜ Some time has passed and I need to arrange for my contract to be reviewed and minimise risk.
Online Business Audit Item 5 - Digital Products
You may offer digital products on your website already but haven’t categorised them as digital products.. Digital products include ebooks, PDF’s, webinars and replays, video recordings of presentations or training, templates and guides available for viewing or download.
It is quite common for disclaimers to be overlooked in digital products. They are necessary, regardless of whether you offer these products for a price or for free. The reason is that the disclaimer provides information about how the product is to be used and identifies that they are provided only a single use licence and cannot share it, copy it or reproduce it. Importantly, it protects your intellectual property and limits your liability where the purchaser expects results that do not materialise.
Our disclaimer template also includes a refund policy. If you sell your digital products, you do not want to have to manage requests for refunds after people have received and potentially consumed the information your digital product provides.
Related: Professional Services: It’s time for a digital product strategy
Disclaimers for businesses with an online presence - what they are and why you need them
Which of the following represents your business needs today?
⬜ I have a disclaimer although I now have more digital products than I did. It’s time for a review.
⬜ I do not have a disclaimer for my digital products. It’s time to get one.
⬜ My business would benefit from digital products. I would benefit from assistance and get a strategy in place.
You’ve completed the Online Business Audit. What now?
Now that you have completed the audit, you will know if your risk is minimised across your business or if there are areas that need attention.
Usually, issues like these explored above arise unexpectedly. We see it in our work every day. Our goal is always to help business owners like you avoid the disruption, stress and costs that come with not having these protective measures in place.
I’ve also been mindful of the expenses that business owners have. That is why I created a range of cost-effective solutions, to help you protect your business (and avoid unnecessary stress and drama too!) and ensure that the road ahead for your business can be as smooth as possible. Take a look at our store here, or click on the titles below that match your needs:
Website Terms of use + Privacy policy bundle
Digital product terms and conditions
Online course terms and conditions
Online membership terms and conditions
And:
Did the audit highlight that you would benefit from a business and website audit?
Could you benefit from a consultation to get specific insights into business structure options?
Did the audit identify that you would benefit from a Client Agreement?
Or, do you have legal documents that need reviewing?
Reach out to our team with your enquiry here, or to organise a consultation, email us directly at bossteam@readytobosslegal.com.
Life as a business owner involves putting out fires from time to time. It comes with the territory however, the peace of mind that comprehensive and up to date legals provides, amounts to far less fires to manage.
Wherever you are in your business journey, may the next 12 months be your best yet!
