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.

---

Face The Fear, Ladies

Okay, I'll begin by telling you that I've been divorced... Read More

Customers - Why Should They Buy From You?

There are a whole range of reasons why customers buy... Read More

5 Tips to Step Boldly into the World & Set Yourself Apart from Others

"Real champions believe in themselves even when no one else... Read More

CHINESE TAKE-OUT: Oriental Business Principles Demystified For Online Enterprises

"The expectations of life depend upon diligence; the mechanic that... Read More

How You Can Earn $1000 A Week Part Time

About 6 years ago I started to notice that certain... Read More

Innovation incubator: Build it and keep it running

If your company is like the one I work for,... Read More

Youve Found Your Guru, Now What?

In my last article, "Follow That Guru", I told you... Read More

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... Read More

An Entrepreneurs Challenge

Living in the twilight zone has its advantages. In the... Read More

Dream It, Create It, Become It! Design a Dream Board

Have you ever heard of "Dream Boards" or "Treasure Maps"?... Read More

Time Management Tips for Solo Entrepreneurs

Does it seem like everyone and everything is vying for... Read More

The Desire For Money, Do You Have Business Sense?

For those of us who grew up with parents who... Read More

Double Down on Marketing

If you want to compete in the world of high... Read More

Surviving the Three Pitfalls of Business Ownership

The morning sun sheds its brilliance and warmth... Read More

The 9 Key Distinctions of Successful Solo-Entrepreneurs!

SUCCESSFUL Solo-Entrepreneurs approach life and business from a perspective that... Read More

Meet Success: Business Profile of Sylvia Acevedo, Communicard Owner

Sylvia Acevedo needed a break from her technology job so... Read More

Boundary Setting 101 for Solo Entrepreneurs

Select the best response to the statement below:As a solo... Read More

Your Company Needs A Mission Statement; Make It Count

Does anyone remember that book "Built to Last" done y... Read More

Franchises - Emotional Fulfillment - Control Your Destiny

Does A Franchise Meet Your Needs?When you think of becoming... Read More

Getting Rich Isnt a Bad Idea

You've seen plenty of articles claiming to offer you the... Read More

Competitive Edge

In his book, The Road Ahead, Bill Gates of Microsoft... Read More

Success Secret - How To Find Million Dollar Opportunities

They're really are powerful million dollar opportunites everywhere.Ok, let me... Read More

Raising Capital for Your Business ? How Long Does it Take?

Most companies vastly underestimate the time commitment necessary to successfully... Read More

Its Good to Know Your Banker

Recently my bank opened a new branch that is a... Read More

How Home-Based Business Entrepreneurs Think

Too many people are trying to start their home businesses... Read More

The History of the Franchise Business - Learning about Business Opportunities by Looking at the Past

Hair care has been around as long as humans have... Read More

Prescription for the Future and Technological Revolutions

The world sure has changed in the last two-decades hasn't... Read More

Six Degrees of Separation

Through just five or six intermediaries, you could be linked... Read More

Hurricane Katrina, Death, and a Different Type of Entrepreneurship

I've seen terrible images today on the television and internet-bodies... Read More

Do You Want to Just Survive or Thrive? (Part 1)

You've probably heard this, or maybe you will relate to... Read More

Oil Change Guys History; Part II

Franchise companies are not born they are made and when... Read More

The Reluctant Entrepreneur

It seems odd to think of a person opening a... Read More

Financial Strategies for Transitioning from Salaried to Solo

7 Financial Strategies for Transitioning from Salaried to SoloA 40's... Read More