Running a small business or agency involves dealing with a lot of important agreements. These agreements help protect your business, set clear expectations, and build strong relationships with clients, contractors, and partners. Knowing which agreements you need can save you time, money, and stress in the long run.

This guide will walk you through the most important types of agreements for small businesses. Whether you’re just starting out or looking to improve how you manage your contracts, understanding these agreements will help your business succeed. We'll cover everything from Non-Disclosure Agreements (NDAs) to Service Level Agreements (SLAs). Each one plays a special role in keeping your business safe and running smoothly.

By getting familiar with these contracts, you’ll be able to better protect your business and work more effectively with others. Let's dive into these key agreements for small businesses and see how they can help your agency thrive.

What is a Non-Disclosure Agreement (NDA)?

A Non-Disclosure Agreement (NDA) is all about keeping secrets safe. When your agency shares sensitive information with clients, vendors, or contractors, an NDA makes sure they don’t share it with others. This agreement is important for protecting your business’s private details, like trade secrets or client information.

Read more about NDAs for your small agency.

What is a Master Services Agreement (MSA)?

A Master Services Agreement (MSA) sets the ground rules for how your business works with a client. It covers things like payment terms and how to handle disputes. An MSA is like a master contract that makes future projects easier because you won’t have to negotiate the basics each time.

Read more about signing an MSA as a small business.

What is a Statement of Work (SOW)?

The Statement of Work (SOW) is a detailed plan that describes what work will be done, how it will be done, and when it will be finished. This agreement helps make sure everyone understands what’s expected, which is especially important for keeping projects on track and avoiding misunderstandings.

Read more about signing SOWs for your small business.

What is a Non-Compete Agreement?

A Non-Compete Agreement stops employees or contractors from working with your competitors or starting a similar business after they leave your agency. This agreement helps protect your business by making sure your former workers don’t use what they learned at your agency to compete against you.

What is a Subcontractor Agreement?

When you need to hire outside help, a Subcontractor Agreement lays out the terms of that relationship. It covers things like what work the subcontractor will do, how much they’ll be paid, and what happens if they don’t meet your expectations. This agreement is key to making sure the subcontractor’s work meets your standards.

Learn more about subcontractor agreements for your business.

What is a Confidential Information and Invention Assignment Agreement (CIIAA)?

This agreement protects your business’s ideas and inventions. It makes sure that any new ideas or products created by your employees or contractors while working for you belong to your agency. It also keeps your business’s secrets safe by preventing employees from sharing or using your confidential information without permission.

Read more about invention assignment agreements for your agency.

What is a Business Associate Agreement (BAA)?

A Business Associate Agreement (BAA) is important if your agency handles sensitive information, like health data, for clients. This agreement helps you follow laws like HIPAA by outlining how you’ll protect that data and what you’ll do if there’s a breach. If your small business deals with regulated industries, a BAA is a must-have for staying compliant.

What is a Service Level Agreement (SLA)?

A Service Level Agreement (SLA) sets clear expectations for the level of service your agency will provide to a client. It includes things like how quickly you’ll respond to issues and the quality of work you’ll deliver. An SLA helps keep clients happy by making sure they know what to expect from your business.

Conclusion

Understanding these key agreements for small businesses is essential for protecting your agency and ensuring smooth operations. Each agreement plays a unique role in helping your business grow and succeed. By using these contracts wisely, you’ll be better prepared to handle business relationships and keep your agency on the path to success.