Do you include everything you need to in your contracts with your clients? As solopreneurs, we can often get wrapped up in everything else that our business entails and forget how important it is to have a solid contract in place. A contract not only protects you and your client but it can also make a powerful first impression.
On this episode of Solopreneur Money, William Warren joins me to discuss the importance of creating contracts. You’ll learn why it is important to have a contract in place as well as what you should include in your contracts.
You will want to hear this episode if you are interested in…
- How William Warren became a solopreneur [2:32]
- The biggest challenges William suffered as a solopreneur [7:49]
- What William did to grow his business [10:38]
- The 3 purposes of a contract [14:50]
- 8 things you need to learn to write a contract [18:49]
- The money questions [34:00]
William learned that starting a business wasn’t as scary as he thought
William Warren is the founder and CEO of The Sketch Effect, a creative services company that delivers animated and illustrated communication products to a wide range of clients. When William struck out on his own to build his business he had no experience or training in the business world. He had to figure out the businessy stuff all on his own. Once he got over the initial fear of starting his own business he realized that becoming an entrepreneur wasn’t as hard as he thought it would be and doing what he loves for a living is fun.
3 reasons to use a contract
Contracts are one of the areas of business that many creatives shy away from. They may think that they don’t need one or that they are too hard to create, so before we discuss how to write a contract let’s first understand why we need one.
The first reason to create a contract is the most obvious. A contract defines the scope of the work and the price. The client learns what they are getting and how much it costs.
The next reason to use a contract is to set protections or limits. By establishing your limits you will prevent scope creep so that clients won’t continue to ask you to do ‘just’ one more thing.
A contract also helps you to seal the deal with your client. A well-made contract will turn a potential client into a client.
8 important things to include in your contract
- Be abundantly clear about the scope of work. Describe what the client is getting, but also make it clear what they are not getting. Make sure to recap the deliverables in plain English.
- Explain your process. What steps will you take to deliver the product? Establish your process upfront to set expectations.
- Define when the client will receive the service. This not only gives limitations but it establishes clear boundaries around the time spent on your service.
- Define the clients’ rights, usage, and exclusivity. State how the client can use the product or service and when they can and can’t use it.
- Be clear on how much the client will pay and be sure to charge according to your value.
- Explain how they will pay you.
- Establish when they will pay you
- Create a space to sign and date the contract.
It is also important to make your contract look polished so that the client understands that they are working with a professional. A clear, well-made contract will entice future clients to sign and bring in more business.
William Warren shares so much value in this interview. You won’t want to miss all that he has to say. Make sure to listen in to learn from his experience. If you found this episode helpful make sure to share this podcast with other solopreneurs to keep it growing.
Resources & People Mentioned
- BOOK – The Clockwork by Mike Michalowicz
- Bob Lewis – Lewis Leadership
Connect with William Warren
- The Sketch Effect:
- The Sketch Effect on Instagram: @thesketcheffect
- William Warren on LinkedIn
- TheConqueringCreative.com sign up for the email list to receive FREE Custom Business Model Canvas and User Guide
- The Conquering Creative on Instagram @theconquringcreative
Connect With Gabe Nelson
- FREE Downloadable Resources at https://solopreneur21.wpengine.com/resources/
- EMAIL: Gabe (at) GabeNelsonFinancial.com
- Follow Gabe on LinkedIn
- Follow Gabe on Facebook
- Follow Gabe on Instagram: @GabeNelsonCFP
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