Statistics show that each year, an increasing number of businesses are filing bankruptcy. It is likely that sooner or later, you will have to deal with a client who’s facing such a dilemma.
It is important that you make plans to ensure your business is adequately protected while working with clients. Wondering how to go about it? Just continue reading…
Set Realistic Client’s Expectations
So you don’t run into any form of confusion or have disagreements down the line, it’s best to manage client expectations when starting a new project. It’s one of the most valuable things you can do for yourself as a serious business owner.
Setting realistic client expectations means from the outset you’re clear, direct and upfront with your client about your product or service categories and options, prices, standards and delivery date. It’s smarter to play it safe with realistic targets.
If you’re working with a new client or have a need to change arrangements with a client, you should ensure that a simple, easy-to-understand and formalised contract is drawn up and signed by all concerned parties.
Check Reviews and Past Records
When a potential new client makes enquiries about your services, you should do a diligent background check on them. Search the client’s name and business name and check what the reviews say on Better Business Bureau (BBB). Also, check their profile and records on any industry groups or online forums you belong to.
Which agencies or contractors have the client engaged in the past? Did the client pay? Was there any form of dispute and, if there were, how were they resolved? The past is often the best judgement of future behaviour.
Make Invoices Clear
The payment process by your client will very likely be simple, direct and quick if you ensure your invoices are equally simple, clear and direct. Besides, it’s another way to ensure you and your business are well protected, and you get paid for your product or service on time.
If the option is available to you and the client, choose an online payment system instead. Make sure statements are regular and never delayed. The due dates should be easy to see and don’t forget to state accruable interests or other penalty fees if the invoice is unpaid or past the due date.
Trade Descriptions Must Be Unambiguous
False advertising (including misleading claims on your websites or in conversations with clients) about your offerings are illegal. So, make sure to avoid it and be careful when you include client testimonials in your promotions.
If you used a client testimonial in your promotion or your website’s sales page, or you claimed a famous brand was your former client, you’ll need to provide proof that those statements are true.
Set Up A Billing System
A billing system not only ensures that clients actually pay you, but it also protects you financially. If you’re working on a major or long project, consider scheduling payments on specific intervals or milestones, so the project is not starved of necessary funds to get it going smoothly and delivered on time.
There are several very efficient and secure software that helps you save time and ensure payment is timely that you can explore.
Whether the company is small or large, responsible CEOs and managers place a high emphasis on business protection and other related valuable assets.
You should too if you’re an entrepreneur or business manager. It will help you avoid any potential problems or have the right means to handle them if you ever encounter them when working on a client’s project. All it requires is a bit of planning and caution.