In Show 158 – Initial Clients – Getting it right from the start originally broadcast on Facebook Live on Wednesday 12 December 2018 we explore this interesting topic.
You can download a copy of the workbook here: 158 Worksheet
Show Notes
Today we’re starting a new format on BLL. Once a month we’re going to present a training show. Craig and I will present our thoughts on a particular phase of the Business Legal Lifecycle. This month we’re discussing Phase 3: Initial Clients.
Finding your ideal client
You can’t service everyone. You need to find your niche. In order to do that concentrate on your ideal client. To do that you can create a highly detailed biography of your ideal client. Decide where they work, how much money they make a year and what they want from your business. You can also get more detailed by asking what kind of car they drive or what sports team they like. This details might seem extraneous but it will help you to target the perfect customer. After you finish this process you will have a highly detailed client “avatar”. If you want more information about how to find your ideal client there’s more information here.
Engaging your clients
This really depends on what kind of business you operate. If you are selling products over the counter for cash you don’t need much in the way of contracts. But that changes if you are supplying products on credit. In that case you need some kind of engagement agreement that details how and when you will be paid. If your client doesn’t pay you need something to fall back on. The consequences for non-payment need to be clearly laid out. To make those terms and conditions binding you have to provide them prior to the sale.
Unfair contract terms
In 2016 the Australian government introduced new rules to prevent unfair contracts. Those rules apply just as much to small business as they do to large corporations. Most of the rules are based on common-sense. Unfair terms are constantly getting struck down by the courts. To make sure you don’t run afoul of the rules get some professional advice from an actual lawyer. Don’t depend on standardized contracts you download off the web.
Personal Guarantees
In this context a personal guarantee is when someone takes responsibility for any debt your company might incur. Most people have to do this when getting loans or credit cards for your business. When you do sign these guarantees always make sure you keep all the paperwork.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
