When starting a new business, you may be wondering if you need contracts with your customers, and if so, what those should look like. After all, creating a contract sounds scary and complicated, and it may feel like an unnecessary hassle. However, there are plenty of reasons why you should have contracts with your customers, not the least of which is legal protection from liability if something goes wrong with your service or product. So read on to find out exactly why you need contracts with your customers!
1 – A Contract Can Give You Peace of Mind
Having a contract in place can give you some peace of mind when dealing with your customers. Knowing that your customer will meet your terms and conditions will free up your time to focus on other areas of your business or life. A contract can also put customers at ease: It is likely that you have heard horror stories from friends and family about bad experiences with service providers, so having a contract in place can put them at ease during their business relationship with you.
2 – Your Contract is Non-Negotiable
A contract is legally binding, so if you don’t think it’s necessary to sign one with your customers, think again. If there is an injury while under your care or guidance that person will possibly want compensation or care expenses to be covered. Contracts let people know what they’re getting into and help protect both parties should anything go wrong. They take away some ambiguities in business and everyone knows where they stand if something doesn’t go to plan.
3 – Contracts are Important in Business
As a business, you’re often doing things that are outside of normal interactions between two individuals. Because of that, it’s not always clear what you can or can’t do. A contract helps you clarify any doubts your customers might have about their agreement to purchase your services. It also sets expectations for both parties to understand what is expected during their time working together.
4 – An Insurance Policy
The more you know about what could go wrong in your business, and plan for it in advance, the better. Customer contracts and waivers provide an insurance policy of sorts for your business: they give you a clear framework to address potential issues or concerns that may arise in your professional relationship. It is difficult to foresee what problems might come up when working with others—but when you have a customer contract and waiver ready to go, you can feel confident that all bases are covered.
5 – A Contract Protects Everyone Involved
When there is a clear, legally binding contract between you and your customers, it’s easier to avoid misunderstandings and arguments. Everyone knows what is expected of them (and can read about it in black-and-white), and if one party doesn’t meet those expectations or runs into trouble, they know where to turn for legal advice.
Tune in to next weeks blog for How to Create a Contract
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