| |
| |
|
Entrepreneurialism Information |
|
|
|
Developing A Contract
As a service provider, the most important type of "boundary" you can set as a business owner involves those policies and procedures that govern how you interact with your clients. The more precise you can be about the services you provide, your fee structure, and what you expect from your clients, the smoother your work relationships will be. And the most effective way to make sure that each party involved understands these policies -- and that there is no confusion -- is to have each client read and sign a written contract. WHY HAVE A CONTRACT Some entrepreneurs will enter into working relationships without the benefit of a contract. Certainly, as an business owner, you are welcome to do whatever you wish. However, I would caution you against this practice for a couple of reasons. First, you are setting your customers up for confusion about your business policies down the road. Having each client sign a contract before beginning work allows you to make sure they understand how you work, your pricing structure, and any other pertinent information up front. A contract also gives you a measure of protection if a client fails to uphold his or her end of the bargain -- sometimes the mere mention of a contract is enough to keep your clients in line. Finally, a contract adds a measure of professionalism to your business. People tend to take a businessperson more seriously when he or she pulls out a well-written contract. And anything that increases your credibility can only be a bonus! A written agreement does several things for you: - clarifies your pricing and policies - insures that your client understands your requirements - outlines the services you provide - protects you against loss of income from clients who cancel or no-show - gives you leverage in an legal dispute with a client So what do you need to include in your contract? Here are a list of issues to consider: SERVICES Exactly what services will you provide? Exactly what do you require of the client for a successful relationship? What are the anticipated results of the services you will provide the client? How will you measure those results? What kind of guarantee do you provide? How do you determine when the terms of the contract have been met and when services have successfully been rendered? SCHEDULED APPOINTMENT TIMES How will you schedule appointments with a client -- in writing or with a verbal agreement? How will you handle a situation when your client is running late -- and how long will you wait for a client after the scheduled appointment time before assuming canceling the appointment? How will you compensate the client if you are running late? PRICING How will you charge for your services -- by the hour? By the day? By the project? Will you present a formal proposal, a binding bid, or a flexible estimate prior to beginning work? Will you charge separately for other services -- shopping for supplies, researching other solutions, consulting with other professionals? Will you charge for travel -- and how far are you willing to travel to work with a client? Will you work with clients who live outside of your city or state? What is your minimum charge for an "out-of-town" client? Will you charge extra for working on weekends? Evenings? Holidays? For "rush" jobs? PAYMENT TERMS When do you expect to be paid by your client? At the time that services are rendered? Within 30 days? 60 days? 90 days? Will you collect a retainer and subtract worked hours from that balance as you go? Will you present your client with a bill when you meet with your customer -- or mail an invoice later? CANCELLATION FEE How much notice will you require when a client cancels an appointment? 24 hours? 48 hours? What are the consequences of canceling without adequate notice? How will you handle a no-show? Will you charge for the entire scheduled session? A flat fee? Is it due even if your client chooses not to reschedule the appointment? How will you collect? And how will you compensate the client if you have to cancel or no-show? LATE PAYMENT AND NON-PAYMENT What will your fee be for paying late -- a percentage? A flat fee? When does the clock start ticking? How long will you allow a late fee to remain due until you escalate your efforts? Will you use a collections agency to recoup money owed? Will you take a client to small claims court? CONFIDENTIALITY How will you protect any sensitive business, personal, financial, or legal information you learn about a client? Under what circumstances may you share this information with another person or organization? What documentation of permission do you require from the client before discussing his or her issues with another person? MAKING IT LEGAL A solid contract is one of the easiest and most proactive ways to prevent client misunderstandings and potential legal entanglements. You may use these guidelines to develop the basic structure of your contract, but please be sure to have an attorney review it - to make sure that the language is appropriate and the document will stand up in court. Good luck! Ramona Creel is a Professional Organizer and the founder of OnlineOrganizing.com -- a web-based one-stop shop offering everything that you need to get organized at home or at work. At OnlineOrganizing.com, you may get a referral to an organizer near you, shop for the latest organizing products, get tons of free tips, and even learn how to become a professional organizer or build your existing organizing business. And if you would like to read more articles about organizing your life or building your business, get a free subscription to the "Get Organized" and "Organized For A Living" newsletters. Please visit http://www.OnlineOrganizing.com or contact Ramona directly at ramona@onlineorganizing.com for more information.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
How Much Risk is Necessary to Grow Your Business? A business owner is thoroughly responsible for their own financial survival and possibly the financial survival of their employees. Business owners, for the most part, seem to be "risk takers", who really don't easily "go with the flow". Increasing Business BIGTIME with a Successful Referral System What I've discovered from most of my small business clients is that most would prefer to build their business through referrals rather than through direct mail, advertising in newspapers, radio, TV. However, most leave the referrals to a somewhat chaotic, unplanned approach. Franchising Companies Need New Franchisee Checklists When franchise companies are moving fast in the market place they must pay attention to the details. If a franchisor fails to give the required items as outlined in the franchise agreement to the franchisees on the prescribed timeline they risk legal issues and regulatory issues. 10 Ways Entrepreneurs Shoot Themselves In The Foot Entrepreneurs and their businesses have a tendency to ambush themselves when they aren't looking. This affects how much revenue they can generate, how fast their business rises, and even if they survive after the first few years. 5?4?3? 2...1? A streak dating back more than three decades came to an end at midnight on New Year's Eve. For the first time since 1972, as America rang in 2005, "America's Oldest Living Teenager" was not in Times Square to count down the dropping of the giant ball. Four Steps to Entrepreneurship As more and more people start or consider starting their own business, it is important that they understand the core steps that are required to launch successful ventures. These steps include spotting, assessing, selecting and executing upon opportunities. Think - Dont React How you think, your relationship with yourself is what decides how well you communicate with your customers and relate to your team.The most important relationship you'll ever have is the one you have with yourself so you've got to get that right. Motivation and Commitment Why do people start small businesses? The most frequently cited motivation for business start-ups is to allow the entrepreneur to achieve independence; money is secondary. Is this surprising? The other reasons named most often are that an opportunity presented itself, a person took over the family business, or the person simply wanted to be an entrepreneur. Franchise Business and Franchise Businesses Franchise business is being part of a successfully proven business that has a name or trademark that is well known and profitable. Franchise businesses are strategically tried and marketable with options to expand by offering products and services that appeal to the consumer. Are You Sure You Want To Start Your Own Business? Part Two of a Series Why, exactly, do you want to go into business for yourself? Is it because you cannot stand the thought of working for an uptight, demanding, and perfectly dreadful boss?Is it because you cannot bear the thought of going through another downsizing or restructuring, knowing that your job could be on the line?Is it because you want to be your own boss, call your own shots, or see more up side in your earning potential, with the possibility of financial self-sufficiency? These are all good reasons for wanting to go into business. In fact, studies have shown that many entrepreneurs get their start due to some life-altering experience such as losing a job or finally walking away from a dead-end job or a demoralizing work environment. Bonsai Marketing Site location analysis of regional service areas and planning for mobile businesses is just as important as choosing a fixed site for any business. The region must be scouted out whether you are simply adding another service unit or deciding to open an entire new marketing area. How A Woman Became A Successful Bill Collector In A Mans Industry And How You Can Too! I have worked in the credit industry for over 17 years now. When I first started out, I only knew a very few women in the industry. What Kind of Business Should I Start? It's not uncommon to reach your 30s, 40s or even 50s and still wonder, "What do I want to be when I grow up?" Few people are fortunate enough to be certain of their destinies early on and the rest of us are forced to do some soul searching.The desire to own a business is becoming more common as workers grow more frustrated with the economy and working in corporate America. Pre-Money vs. Post-Money Valuation When a company decides that it must raise capital, a key question that must be answered is how much the company is worth. For example, if the business needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. Business Start Up Tips From Some Hearty Entrepreneurs When's the last time someone asked you: "What's new?" If you're starting or growing a business, an e-business, or a web site, the answer is: "Everything!" - especially on the inside.Face it, launching a new enterprise - or taking it to the next level - can sometimes feel scary and overwhelming. Be Where the Pucks Going To Be The "Great One" said it bestHockey legend Wayne Gretzky, when asked how he was always on the puck before anyone else, pointed out that he was by no means the fastest skater on the ice. Instead he explained that he always just focused on skating toward where the puck was going to be. The 7 Traits of an Exceptional & Successful Entrepreneur How often have you either referred to or considered the expression, "Success is a journey and not a Destination?" Probably many times, yet often being in a hurry to get there, we forget that success is not an end unto itself, but is instead an ongoing process.Though some people seem to have the Midas touch and easily turn everything to gold, most of us have to give our endeavors lots of time, effort and the sweat of our brow before seeing things come to fruition. Financial Issues in Business Startup A primary inhibitor of business start-up is that few people have the financial cushion to give up a job for the uncertain income of a start-up venture. In a recent survey, about 30% of new business founders identified inadequate funding as their biggest hurdle, and a similar amount said lenders were too conservative. Enterprising Route is to Go Your Own Way DON'T talk to me about education for entrepreneurs. They're pouring far too much public money into it already - not counting the millions some well-known Scottish entrepreneurs are prepared to waste on it. Making the Financial Transition Making the financial transition from paid employment to earning a living on your own is probably the single biggest challenge facing many would be entrepreneurs. For most, the mere thought of financial insecurity holds them back from even trying.
|
| home | site map |
| © 2006 |
