As you begin to set up the specific processes for your business, there are two specific areas you need to spend extra time on: contracts and charging for services. How you handle these processes can have a major impact on your business in so many different ways.
Having a contract or agreement with you clients offers protection for both parties, defines the relationship, and explains the scope of work. Essentially, the contract manages the expectations for your business and your client. This will hopefully reduce the opportunities for misunderstandings that could lead to unhappy clients. What you include in your contract will be the key to managing those expectations, but you will want to think through what you include since your contract should reflect the image you are trying to portray with your business.
For some examples of what you can include in your contract, check out our Start-Up Resource Guide!
The next concept requiring extra attention will be how you will charge for your services. First conduct a market analysis in an attempt to determine what similar providers are charging in your area. This gives you a starting point for your services charges. This could be something that you do while developing your business plan since you will need to estimate revenue for that, especially if you are looking to secure funding.
Other things to consider when determining how you will charge for your services include insurance coverage versus customer self-pay, billing and payment options (cash, check, credit card etc.), payment technology required (credit card terminal versus options like Square or Apple Pay), and how you will bill/invoice your clients. Many of these specifics will require further research as you will need to find the proper technology to support the methods you have chosen. Again, our new Start-Up Resource Guide can offer further insight into this topic!
At the end of this first week of the blog series, how are you feeling about your business idea and your business plan? Enjoy your weekend and come back next week for a marketing focused week of blogs to finish out this series!