What role does your contract play in your service-based business? This might be something you haven’t really thought about. So often contracts are viewed as just a necessity, stating the terms or protecting the business in case a client relationship sours.

While contracts are something you should have for your business, I don’t think entrepreneurs use them to their full potential. In this episode, I want to expand your thinking about contracts and discuss how they’re an underutilized tool service business owners can use for proactive problem-solving. I cover how I apply this in my own business for clients and discuss how to use your contract to solve issues that come up surrounding payment, communication, and scope creep.

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In this episode:

[02:41] - Contracts serve as a tool to proactively troubleshoot issues with clients. Danielle discusses what that looks like in practical terms.

[04:16] - Danielle shifts focus to types of problems you can solve with your contract before they arise, starting with payment issues.

[05:21] - Many service business owners also use payment terms to ensure that this scenario doesn’t happen.

[06:39] - Potential problems can arise related to communication issues.

[07:18] - How can you set proper expectations about communication with clients in your contract?

[08:18] - Danielle talks about another potential problem area similar to communication issues: non-responsive clients.

[09:42] - Having backup contact information can be a way to solve a lack of communication problem between you and a non-responsive client.

[10:16] - Danielle addresses scope creep, a common issue for many service-based entrepreneurs.

[11:55] - What’s the best way to ensure scope creep doesn’t happen? Here’s a simple solution and how to enforce it.

[12:48] - Danielle wraps up the episode with some action steps.

 

Links & Resources:

Episode 9: “Contracts: Money & Getting Paid”

Episode 28: “Managing Drafts and Client Approvals”

Episode 38: “How to Avoid Scope Creep”

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