What Works: Good boundaries make for good business
Submitted by editor on Mon, 10/17/2016 - 11:35am
I grew up where the handshake deal was gold. If someone said they would do something, they did it. All it took was a handshake and work began. Handshake deals are still pretty common. Unfortunately, plenty can still be misunderstood with a handshake deal.
That’s where we get into trouble as business people. Handshakes are great. General agreements are good to get the ball rolling. But do you ever pause to question if the terms of your handshake are clear? To avoid misunderstanding, good boundaries make for good business.
I think contracts have gotten a bad name among those who prefer verbal agreements. They bring up images of things going wrong, litigation, and stress. Yet, some of my most stressful times in business is when I failed to check for understanding. A contract isn’t just legal ground to stand on. It’s a way to check your understanding of what you will deliver and when your customer can expect it. In other words, it’s a way to set good business boundaries. You can do this with an email, a letter, or a formal contract. The important thing is that you do it.
A basic agreement includes the following things:
What you will do: When you provide details on what you will do, it gives your customer the opportunity to request additional work or correct your understanding of the work you will deliver. I call this my gut check. If I skip this step, I might start working based on assumption versus the reality of what my client needs.
Time frame to complete it: This is important. What is the deadline? When is your customer expecting delivery? Set a time frame which you know you can meet to maximize customer satisfaction. Make sure your customer is clear about your hours of operation, holidays, or anything that might impact your time frame.
Special requests: If you would like your customer to arrive 10 to 15 minutes before their appointment time to fill out paperwork, let them know. You can do this when they schedule their appointment. Often, I will have my clients bring a notebook and a pen to our appointments so they can take notes. I will get client permission before recording a session. It’s important to communicate these special requests, and get agreement on them, so your customer is not surprised.
Payment details: Payment details include more than the amount due. Your customer should know what payment methods you accept, your return or refund policy, billing details, deposits, or any other payment details. In many businesses, such as the restaurant industry, this is clear cut. Other industries, it isn't. Independent contractors, for example, may run into issues when the scope of the project changes. Seeking payment for extra, without a clear agreement beforehand, could create conflict.
Agreement: An agreement is when you get a yes. The appointment is set. The work gets the green light. A good agreement always asks this question in some way. “Client/customer, do you agree to this?” If you get a yes, you have a deal. If you have a no, you can refine the agreement until a you reach an understanding.
The clients I encounter who set poor business boundaries are often people pleasers. They avoid conflict at all costs.
What you must understand is this. When you have firm business boundaries, you are saying yes to collaboration with your client. You aren’t saying no to them. You are checking your own understanding of the agreement so you can deliver. You are taking measures to reduce the potential for conflict. It's an essential step in building strong customer relationships.
Of course, if you want to create a document you can use with your customers that provides legal protection, see a lawyer.
Today’s exercise: Take a look at your business agreements. Where are you clear? Where might you be unclear? What benefits have you experienced by setting good business boundaries? Post your experience in the comments below.
What Works Coaching
Diane Dye Hansen is the Chief Inspiration Officer of What Works Coaching, a business coaching and marketing services firm based in Carson City. She has 20 years of experience working with top corporations, growing businesses, motivated entrepreneurs, and individuals hungry for a fresh start. Diane holds a Bachelor’s in Business Administration and Marketing from Cal State San Bernardino. She is also a candidate for a Master’s degree in Communications Management from the University of Southern California. Her column appears every Monday, and sometimes Tuesday, in Carson Now.
