When Being 'Nice' in Business Contracts Backfires
Manage episode 483974341 series 2824162
I talk to business owners quite regularly who think they're doing their clients a favour by keeping their legal contracts short and sweet. However by trying to be "nice", they’re doing more harm than good.
I get it. You want to be approachable, you don't want to overwhelm clients with "legalese” and scare them off with a huge document that looks too formal.
But providing your clients with a short and sweet contract is not setting them, or you, up for success. Today I’m sharing three areas where I see contracts backfire when business owners are just trying to be nice.
Managing Expectations
Your client agreement needs to clearly outline:
- Exactly what you're delivering (and what you're not)
- How additional requests will be handled and billed
- Who owns the intellectual property
- What happens if either party needs to end the relationship
Intellectual property
Without clear language addressing intellectual property ownership in your agreement, you're often left without recourse. The client feels entitled to use your work however they want because those casual discussions weren't documented properly. Your intellectual property is one of your most valuable business assets. Protecting it isn't being difficult - it's being smart.
Contractor Complications
Recent legal changes have transformed the contractor-employee landscape, and generic templates simply won't protect you.
Each contractor relationship needs a tailored agreement that reflects the specific nature of your working relationship. Without this, you're exposing yourself to potential misclassification claims that could cost you dearly.
Reframing "Nice" as "Professional"
By clearly outlining expectations, deliverables, and boundaries, you're showing that you value both your work and your client's time. You're eliminating the ambiguity that leads to disappointment and disputes.
This isn't about creating cold, intimidating legal documents. Your terms and conditions can absolutely reflect your brand's personality and warmth. In fact, tailored T&Cs give you the perfect opportunity to showcase your unique approach while still providing proper protection. From your choice of language to how you structure your client communications around these agreements, you can maintain your personability while establishing professional boundaries.
Remember: a comprehensive agreement isn't a barrier to conversion – it's a demonstration of your professionalism that can actually enhance client confidence.
You can be both kind AND professional. In fact, the kindest thing you can do for your clients (and yourself) is to start with crystal-clear expectations.
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