Build your Brick Wall by Samantha Wood

Being in Business is risky.

You want your day to day to be focused on the myriads of responsibilities and actions needed to grow your business and enhance your livelihood: marketing, squeezing in those RAVEs, selling/delivering your product/services, etc. etc. etc. And every business is different.

While you do what you do best, you need to make sure that you have the systems in place to keep you safe and protect your blindside.

Enter my Brick Wall theory.

In business (and to be honest, in Life in general), we all need to build a brick wall to protect ourselves, our loved ones, and our assets. Each ‘Brick’ is a component or legal document that exists to protect us.

And, just like our Businesses, everyone’s brick wall is different. The best Brick Walls have Bricks that complement each other and fit snugly together. (I am not a builder, if you couldn’t tell). You don’t want a Brick Wall that is over complicated to your needs either – you do not need the Great Wall of China if a garden wall will do.

At a Minimum, the Bricks anyone should have in place are:

  • Enduring Power of Attorney for Property (ensuring someone is appointed to look after your finances in the event you cannot);
  • Enduring Power of Attorney for Personal Care and Welfare (ensuring someone is appointed to look after your welfare in the event you cannot);
  • A Will;
  • A Constitution limiting your liability if you are the Director of a Company;

More complex Walls could include:

  • A Trust (and all the documentation that comes with that);
  • Relationship Property Agreements (especially for people in business partnerships who are in new relationships);
  • Comprehensive Terms of Service/Terms of Engagement for your customers;
  • Well-thought out internal Staff Polices and Employee/Contractor Agreements (for those who manage staff);
  • Director and Shareholder Agreements (for Businesses with multiple people at the helm);

Personally, at the end of each financial year I like to draw out my ‘Brick Wall’ and for each brick consider:

  • Is this up to date?
  • Has it done what I need it to do?
  • What other risks can I think of that I need protection from?
  • Is this necessary?

Having this conversation with myself, my lawyer or my accountant means that I can set and forget my Brick Wall for the coming year and focus on what I do best – looking after other people’s Brick Walls.

What does your Brick Wall look like? Give me a call if you are interested in plugging the gaps.

This is generalised advice and not a substitute for independent legal advice tailored to your fact base.

Sam Wood

Senior Solicitor |  Wakefields Lawyers Limited (incorporating the legal practice of Simco Lawyers)