Contracts Can Make Everything Clearer

In my last corporate job before I started my first business, I represented cartoonists and negotiated licensing deals for them. The first mistake I made was that I didn’t have an employment contract.

The second mistake was that I trusted my boss to have my best interests in mind. He didn’t.

For every deal I negotiated, I was supposed to earn 15% of the final price of the contract. When my boss realized how much money I was going to make on my first deal, he changed the rules and paid me a percentage of the amount the company made, not a percentage of the whole deal.

I quit shortly after that.

When friends asked me why I quit, and I explained what happened, they asked me why I didn’t have a contract. Ummm…I didn’t think I needed one? Obviously, I did.

Start with the contract

The purpose of a contract is to make sure that you and your client understand what services you’re going to provide and at what cost. Otherwise, your client’s perception of what you’ve agreed to provide may be different from yours. With a contract, no one has to second guess what the deal involves and who is responsible for what. When you create a standard contract that you can use for most clients, consider having an attorney review it.

Create a relationship built on trust

It’s important to build rapport with your clients and offer to help them as much as possible, yet you need to set limitations. When a client asks you to perform duties not included in your contract, let them know ahead of time that they’ll be billed for the extra time. No one likes surprises, especially when they involve money. Your clients will receive the services they request and you’ll be compensated for your time.

Keep the lines of communication open

Stay in touch with your client throughout the project. It’s up to you to let them know the status of the project, so make sure you know whether they want you to call them or communicate via e-mail.

Fulfill your commitment

Work to fulfill all of the terms of the contract and to meet the agreed upon deadline. Don’t assume anything. If you’re unclear about any aspect of the project, contact your client.

A contract doesn’t ensure that everything will run smoothly, but it’s a good start.

Have you ever had a problem with a contract or the lack of a contract? Please share your comments below.

 

15 (more) Actions You Can Take in 10 Minutes or Less to Move Your Business Forward


In a previous guest post, Michelle Shaeffer shared 10 proven strategies to help you improve your business. The response from readers was overwhelming. In this guest post, Michelle shares 15 more tips.

Guest post by Michelle Shaeffer

1. Write a testimonial.
Think of a product or service you’ve recently received that was fantastic. Now write a testimonial for it and send it to the business along with name, business, URL, and city/state. Include a statement of your permission to reprint it on their site, in their newsletter, etc. If you don’t feel like writing, record it as an mp3 and send. Most (all?!) businesses love to get testimonials or positive reviews and will happily use them on their websites and include your business name and sometimes even a live link to your site.

2. Record a quick how to video and upload to YouTube.
YouTube is a huge source of traffic for many websites.  Using Jing (there’s a free version) or similar program you can quickly and easily create a short how to video with a tip or step by step use of a product or service you offer. [Read more...]

How to Save Time by Helping Others Be On Time

On a show that my sons and I were watching a few nights ago, one of the characters walked in and said, “I’m late because I’m very important.”

Can you relate to that line?

Think about the last time you were sitting in a coffee shop waiting to meet with someone. You were clear about the time and place to meet, yet you have to wait at least 15 minutes until that person shows up. How frustrating is that?

All of us know someone who’s time-challenged. They’re not trying to be disrespectful of our time…it just seems that way. There are a few ways, though, to help people in your business life and personal life be on time.

Give an earlier time

When you schedule an appointment with the always-late person, give him or her a time that’s 30 minutes earlier. When that person shows up late, they’ll actually be on time. That worked with a former boss of mine. When she had to do a live television interview, I told her to show up at the studio 30 [Read more...]

7 Stupid E-mail Mistakes to Avoid

Stupid e-mail mistakesLast night I decided to give up multi-tasking. I made that decision after I forwarded an e-mail without scrolling down completely and reading the last sentence. As I pushed send, I looked at the last line and let out a loud Nooooooooo!

The friend who had sent me the original e-mail, knowing I was going to forward it, included a smartass sentence at the end. Note to self: read entire e-mails before you forward them.

You’ve heard of what not to wear. There are a few things not to do when you send an e-mail.

Click “reply all”

When the e-mail should go only to the person who sent it, send it to that person only. If you [Read more...]

When is it Time to Fire a Client?

When I was in the corporate world, I couldn’t pick and choose my clients (or unfortunately, my boss). No matter how eccentric the client was — his or her stories would make an interesting book — I had to grit my teeth and bite my tongue to make sure no one complained to my boss.

It’s no wonder that eventually I was fitted for a mouth guard so I would stop grinding my teeth at night.

When I quit my last job to start my own business, I realized that nice, decent clients were out there. For many years, I’ve been fortunate enough to work with amazing clients who listen to my advice, are open to new ideas and more importantly, understand (and appreciate) how I can help them. [Read more...]

When Do Business Favors for Friends and Family Go Too Far?

Would you do a favor for a friend or for someone in your family?

Depending on the favor and the friend or family member, most of us would. Sometimes, though, the favor isn’t worth the aggravation it causes.

Last year, a friend asked me to look at the plans for her new house and to give her ideas for improving them. As a favor to her, I spent two hours reviewing her plans and gave her several suggestions. After her architect made the changes, she asked me to look at the plans again. I spent another hour looking at them (still part of the favor) and made a few more changes.

When she called two months later to ask me to help her pick out lighting, with an offer to buy me lunch, I said no. She had crossed the line from asking a favor to taking advantage of my time and expertise.

After that experience, I’ve changed the way I do business with friends and family. Consider these tips for avoiding a similar (uncomfortable) situation. [Read more...]

10 Great At-Home Careers

How many times have you thought about starting a business, expanding your current business or starting a second business? The question isn’t whether you’re ready to work for yourself, but what type of business you should start.

Whether you have an eye for fashion, a knack for organizing, or enjoy shopping (with other people’s money), there’s a business out there for you. These ten businesses should spark your creative juices and help you discover skills you may not realize you have. [Read more...]

It’s Not What You Say…It’s How You Say It

I’m trying to settle a disagreement between two of my friends. One is remodeling her home and the other is an architect. I convinced my remodeling friend to hire the architect to help her create the perfect plans.

I thought they’d work well together.

I was wrong.

Relationships aren’t always as they seem

Last week I sent my remodeling friend an e-mail to ask her how things were going with the architect. She sent me a one-page e-mail describing everything that had gone wrong with the project. She couldn’t understand why I would have a friend as nasty and unprofessional as my architect friend. [Read more...]

The Benefits of Bringing Kids Into Your Business

When my sons were little and we were bored one rainy Saturday, I decided to give them a small business lesson.

We went into their bedrooms and they each picked out a few toys they no longer used and were willing to sell. Then we clicked on eBay, researched similar toys, set the price and listed their items. Within a few days, they each earned around $25.

A few things happened:

1. My sons learned a bit about researching competitors

2. They gave their old toys new life

3. We spent quality time together

[Read more...]

How to Keep Clients From Taking Over Your Business

Yesterday I went to my favorite stylist to get a haircut.  While she cut my hair, she mentioned how frustrated she is with her business.

She has too many clients.

In my book, that’s a good problem. Not so, in hers.

Instead of running her business the way she wants, she’s letting her clients take over.

Her main complaint is that a client will call her and expect to get an appointment within the next few days. (I learned the hard way and now book my next appointment before I leave her salon.) She feels bad about turning away clients, so she stays late or comes in early. She’s finally reached the point of burnout and isn’t sure what to do. [Read more...]

Hide me
Sign up now for an excerpt from Organize Your Home Office for Success!
Name Email
Show me
Close