What to Know About Running Contests

For many businesses, a contest is a perfect way to reward loyal customers and bring in new traffic. Best of all, you don't have to be a huge company with deep pockets to start a contest. However, there are some legal matters you need to be aware of before diving into the contest arena. Keep these guidelines handy before considering launching your contest.

Make it a sweepstakes or contest.

Sweepstakes and contests might sound like the same thing but in the legal realm they are quite different. A sweepstakes is when a person merely "enters" to win something. That can be as simple as submitting an email address or sending a text. On the other hand, a contest involves some sort of skill like writing an essay. You'll want to make that distinction because each one comes with a specific set of legal guidelines/restrictions.

Make a list of rules.

You'll need to make a list of rules for your contest and then adhere to those rules. These rules should cover the typical items such as deadlines, eligibility requirements and rewards. They should also cover every possible scenario in terms of winning and losing. In other words, don't leave anything to second-guessing.

Make it region specific.

It's easy if you have a small neighborhood business and want to run a contest for your customers. You would only have to look up the guidelines as it pertains to your city and state. However, if you want to go national or international you're going to need to do a lot more research. This is why many contests have built in restrictions as to who can play.

Make sure you understand the online rules.

Obviously, the best way to reach the most potential customers would be with an online contest but that will open the door to a whole new range of possible restrictions. You might think it's a good idea to run a contest in order to get an expanded email list, but in reality you could be prevented from using those newly acquired addresses. Make sure you follow the rules especially when there is the potential for minors to be exposed to your contest.

Make sure you get a good attorney.

Suppose your contest involves printing "golden tickets" that a customer needs to find. What if the printer messes up and everyone gets a golden ticket? That scenario actually happened to Kraft Foods back in 1989 when suddenly all of the contestants in a contest were claiming brand new cars when there was only supposed to be one winner. Since then the "Kraft clause" was instituted to cover those kinds of human errors. An experienced attorney who has crafted rules and regulations for a contest will know all about those clauses and that's who you should be retaining to help with your contest.

When it comes to contests, you want to make sure your company comes out as the real winner!

How to Reduce your Legal Fees

As professions go, lawyers are probably among the most maligned out there. You definitely want a "barracuda" on your side but the moment an attorney starts serving you papers they become the bane of your existence.

If you're in business, you need a lawyer. Hopefully it will only be for the start-up and lease negotiation process and not defending you in a lawsuit.

Even with the simple contract work, legal fees can take a huge chunk out of your bottom line.

How can you reduce your legal fees? Consider these ideas: 

1)  Be clear on what you’re paying for

Before entering into any arrangement with a lawyer you should understand their billing practices. Instead of billing for every piece of work on an hourly basis, your potential attorney could work on a flat fee. This is a good arrangement especially if you are looking for contract review and not a lot of back and forth "fixes."

Understanding what you're paying for also means going over your bill every month. If something doesn't look right, ask your attorney for clarification.

Make sure to keep track of your own contacts with the lawyer to compare with the bill.

2) Think before you call or email

Having a lawyer at your disposal is a bit like living with a doctor; you just can't resist the urge to ask about every question that pops in your head. Just know that with a lawyer you're going to be billed for every phone call and email that you send.

Even if it takes them 30 seconds to respond, they're going to charge you at least a quarter of an hour.

All of this means to plan before you communicate. You might be able to answer your own question and save yourself some bucks.

3) Do some of the work yourself

Always keep in mind that lawyers will bill for everything. Reduce costs and time by making copies and delivering documents on your own. Also, try to respond in a timely manner whenever your attorney requests information. If they have to keep reminding you to submit something, that will be another charge.

4) Don't hesitate to shop around

Nurture a great working relationship with your lawyer. It could make all the difference. However, if you find them doing the kind of basic work that any decent attorney could do, you might be well advised to shop around. Find out what other attorney's are charging. Ask your friends who they use. Remember that the lawyer is working for you!

How to Choose a Law Firm for Your Small Business

As the owner of a new small business you’ll be taking on a lot of responsibilities. In your role as boss, it will be your final decisions that impact your staff and the direction you want the business to take. While it might feel at times as if you’ve taken the weight of the world on your shoulders, you can (and should) add to your team with a qualified attorney. Developing a working relationship with an attorney who understands your business will be vital to your success. The following are some helpful hints to help you pick the right law firm.

1)      Start With a Recommendation

When you open up your business you’ll be entering into a community of your peers - other business owners who have been through your situation. These fellow owners can are great resources for solving any challenges that you might face. This network can answer any business related questions that you might have. Start by asking about the law firm they use. Getting recommendations from business owners is the best way to start researching the law firm that will be perfect for your needs. Keep in mind that just because someone recommends a law firm doesn’t mean you have to hire that firm. You’re just asking for names.

2)      Write Out Your Vision

You might have created some sort of business plan for your investors, but your vision of where you want your business to go is something less formal. This is a document that you can use to strategize with an attorney. This vision can help you choose the right law firm based on that firm’s experience. For instance, you might want to franchise your business so you should be looking for a lawyer with expertise in that field. The same holds true for expanding your business globally. Does the law firm have offices in other cities or countries?

3)      Research

Just as your business will need a website, every prospective law firm you’re looking into will have their own internet presence as well. This will be your first impression of the law firm and can tell you a lot about how they handle their business. Once you enter into discussions about retaining the services of a law firm you’ll be given the opportunity to follow-up with their references. Make those calls.

4)      Factor In the Costs

Billing practices vary from one lawyer to another. Many new business owners have gotten quite a shock from their first legal bill when they are charged for a quick phone call or email response. Remember that lawyers make their living through billable hours. When you develop a strong relationship with a law firm the “nit-picking” of hours charged might not become such a big issue. However, you should be aware of all the fees up front and what a lawyer expects to bill you for. Additionally, all these fees should be in writing.

Even if you are a freelancer or a home business, there will be a situation where you will need to use the services of a corporate lawyer. This could range from needing legal advice, or it could be to draft up contracts and agreements. Either way, it's always a good idea to retain the services of a corporate lawyer in case any unexpected situations come up.