How to protect your business from getting into hot water

How to protect your business from getting into hot water

by | Oct 31, 2018 | Business Success, Legal

On occasions, I come across businesses that have to cease trading due to not having the correct terms and conditions in place.  They have hit a problem with their client or a service provider, and have run into hot water as terms weren’t agreed in advance.

It’s critical that you have terms and conditions set out with your client to protect yourself and your business.  With two businesses I have seen close recently, if they had the correct terms and conditions set out and signed between both parties up front, they would not have run into the trouble that they did.

As a bare minimum, your terms and conditions should include:

  • What you are going to deliver
    • The scope of the work with a clear definition of what products and services will be provided.
    • Timelines for the work to be completed,
  • Charges and payment terms
    • What is the length of the contract
    • What are your costs and payment terms
    • Do you need payment up front? If part payment, when is the remainder due? Late payment charges.
    • How long does any quote stand for?
    • Any additional charges that may occur
  • Confidentiality agreement
  • Any warranties and prevailing laws
  • Limitations and exclusions of liability
  • Cancellation terms
    • What happens if either party is unhappy and/or wishes to cancel?

NEVER work on trust!  This is a recipe for disaster.  It may seem a lot to put together but I can guarantee you will wish you had taken the time and trouble to put these into place if you ever do run into trouble.

Without clear terms and conditions, confusion can occur with the client thinking they may be able to pay at the end of a service, but you need payment upfront.

Terms and conditions also make you look far more professional. Personally, I would never enter into an agreement without specified terms and conditions from a supplier and quite a few businesses have lost my custom as they did not have these available.

If you need help setting yours out, SQL legal also have some pretty good templates but always check that they are suitable for your own business needs.

 

 

Why Terms And Conditions Are Important For Your Business

Why Terms And Conditions Are Important For Your Business

by | Jul 19, 2018 | Business Success, Legal

Do you have terms and conditions for your business?

If not, go sort them out now!

Not only will this help protect you in the future in case of any dispute but they make you look more professional and can help you gain business.  Your clients need to know exactly what they are getting and feel protected from their end also.

Today, I was in the process of booking a photo shoot with a photographer who asked for a deposit up front.  I was more than happy to pay this but requested T’s and C’s with contract first.  And then came the silence …….

They didn’t have any!  This made me feel very aware that I was handing over my money with no protection on my side.  What if I needed to change the date or cancel?  How long would it take to get the photos after the shoot?  What if the photos weren’t good enough?

Hasten to say, I didn’t pay the deposit and cancelled the shoot.

As a bare minimum, your terms and conditions should include:

  • The scope of the work with a clear definition of what products and services will be provided.
  • Timelines for the work to be completed,
  • What it is going to cost and your payment terms
  • What happens if either party is unhappy and/or wishes to cancel.

Without clear terms and conditions, confusion can occur with the client thinking they may be able to pay at the end of a service but you need payment up front.  Or it may be that they think the service will be delivered to a different timescale than you can work to.

Have you ever encountered any problems with clients in the past?  What was that problem?  Think how to incorporate terms and conditions that will stop this scenario happening in the future such as a client having to supply you with information required within a given period (this is a huge problem for web designers where they are sat waiting for info before they can complete the project and get paid!).

There are plenty of templates online to use such as at SQL Legal but do make sure that you read them carefully to ensure they cover all you need for your specific business.