In the entrepreneurial world, one skill stands out as a game changer: mastering contracts. It's not just about reading or negotiating them; it's about understanding how to write them and negotiate them.   And here's a bold statement: you, as an entrepreneur, should know how to write contracts better than most lawyers.

Entrepreneurs should never fear contracts, they are your best friend and best weapon to fend off your enemies.  Everyday you make promises to each other that are considered "contracts" and I can teach you simple contract skills, red flags, how to make contracts in your favor, and other benefits that will make you win as an entrepreneur.  

I'd say maybe 10% or less of all lawyers write contracts and frankly don't understand them.  In business, almost everything hinges on contracts.  Everything is a promise to perform and entrepreneurs really need to learn contracts, the basics, and how to rewrite them in their favor in order to protect themselves.  It's not that difficult and most entrepreneurs are smart enough, they just need some training.  

With over two decades of experience in legal practice, I've seen the power and pitfalls of contracts in business. Here, I’ll share insights that surpass what you might learn in law school, focusing on simplicity and practical application. Let’s delve into the top three basics every entrepreneur must understand about contracts:

1. Contract Fundamentals: Understand the essentials of what makes a contract legally binding. This includes the parties involved, the mutual agreement, the intent to create a legal relationship, and consideration (exchange of value).  Understand as well that contracts should be in writing, otherwise you could spend years in litigation trying to prove the existence of a contract.  I've seen those mistakes way too often. So learn the fundamentals because if there is no consideration, it's not an enforceable contract - it's a gift.  

2. Clarity and Specificity: A contract should leave no room for ambiguity. Clear language, specific terms, and detailed obligations and rights of each party are crucial. This clarity prevents disputes and misunderstandings.  And lawyers love to make contracts complicated.  I don't.  I make them simple, clear and short so there is no room for argument.  That's how I train bosses.  

3. Negotiation Tactics: Negotiating a contract is an art. It’s about finding a balance where all parties feel their interests are adequately represented. Learn negotiation strategies to ensure your contracts are not only fair but also favorable to your business goals.  Negotiation comes from practice and having the right mentors to coach you and give you frameworks that really work in both life and business.  

In addition to these basics, remember that a well-crafted contract can be your strongest ally in business. It’s a tool for clarity, a shield against misunderstandings, and a foundation for strong business relationships.  Plus, once the world sees that you know what you are doing, understand contracts and how to protect yourself, your enemies (competitors, customers, regulators, challengers and your very own ego) will think twice about trying to harm you.  Great contracts are incredible deterrents of liability.