Guide My Business - Team

What’s the best thing to do if the obligations of a trade are not met?

Of course, this is something we’re trying to avoid, but when worst comes to worst and a trade doesn’t go as planned, a contract with clear expectations is PRICELESS.
WHY?

You must ensure that you have a clear guideline on how to handle these what-ifs.

It’s not superstition, but fact — the more proactive you are, the less what-ifs… and the less disruptive the what-if are when they happen.Here’s an example clause you could use to set a completion date for your trade (think of this as the safety net if milestones or other expectations are not met):

“In the event that any party doesn’t deliver the product or services as specified in this agreement by [blank] date, such party must either (1) fulfill their obligations to the other party within 7 days or (2) provide proportion monetary compensation to the other party in the amount equal to the loss within 3 days.”

This demonstrates the importance of establishing (and documenting) monetary values (and a means to calculate it based on percent completion).

So, if you’re trading services, ensure there's an hourly rate or a project rate with different milestones that allows you to break it down and track your time and progress.

But, if you’re trading goods, there should be a set quantity of tangible goods based on an agreed-upon unit price.

Do you struggle with infusing terms in your contract contracts into your onboarding process? Don’t worry, we got you! 😉

There are 5 important elements that should be pulled out of your contract and thoughtfully integrated into your process.

1️⃣ DISCLAIMERS
Disclaimers can be integrated in so many facets of your business (from marketing materials, consultations, and so much more) and the best part is, it doesn’t have to feel formal. Disclaimers are simply context — setting expectations and grounding your clients to understand the nature of your business relationship and how they need to show up.

2️⃣ CLIENT INFORMATION OR MATERIALS REQUIRED
If your services rely on information or material required before you start a project, then, this one is really important.

Before you begin with, you need to ensure that you have included a list (and description if necessary) of all the information or materials you will need. Then, give them a clear due date so you can create the magic you’re responsible for creating… without a rush!

3️⃣ IMPORTANT DEADLINES AND MILESTONES
Note important deadlines and milestones.

Your contract should mirror your most ALIGNED process – the way you want to work and not the way you’re currently working, so that you can set clear expectations and check-in along the way.

4️⃣ BOUNDARIES
It’s time to set boundaries like your office hours, communication preferences, and response times in your contract. Trust us – it’s a game changer!

Want to take this to the next level? Make the boundary easy to enforce. For example, since we have a no texting policy with clients, we have a template text message reminding them to email us, so our team can support them.

5️⃣ INTELLECTUAL PROPERTY LIMITATIONS
You need to let your clients be reminded of your rules, your intellectual property limitations and how they can use the content you’ve provided or created for them, whether they can publish it on Instagram, their website, or how to use it inside their business.

Remember: Your contract serves as a living document.

Comment down if you’ve been practicing these elements in your contracts.

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What is the first step of buying a business?
DUE DILIGENCE.
Before anything else, there will be disclosure of confidential information on both buyer and seller – and your part might be disclosing confidential information like your financial capacity to fund the purchase or assume existing liabilities.
Between both of you, there should be a Non-Disclosure Agreement. It’s really important to have this beforehand as the seller is (justifiably) concerned that you're just going to come in and use this as a fact-finding mission to launch your own business.
From our experience with clients, the sooner you can get into the nitty-gritty details and begin due diligence, the sooner you'll understand…
Be sure to dive into:
👉 What liabilities will I need to assume?
👉 What’s the value of the assets (or debt)?
👉 What are the details of the contracts are in place?
From our experience with clients, the sooner you can get into the nitty-gritty details and begin due diligence, the sooner you'll understand the complexities of the business and whether it's the opportunity you expected it to be.
Doing your diligence now also sets you on the right foundation to scale the business and embody your new vision for the next chapter of your business.