The Real Reason You Do Agreements
by Alexis Martin Neely (Smart Women Institute Faculty Member)
I’ve talked with so many business owners recently who are doing business with undocumented agreements.
Hand shake deals.
They tell me they intend to get it done, but we both know the truth … they won’t.
I get it – I experience a lot of my own personal resistance to getting agreements documented.
Getting written agreements in place brings up a lot of stuff that can be challenging to deal with.
Just the other day though I was reminded of how important it is.
Tina Forsyth hired me to create custom Terms of Service for the website for her THRIVE Hiring System and a template agreement that business owners who invest in the THRIVE Hiring System can use before hiring.
Before I began work, I sent Tina an agreement confirming what I understood the scope of work to be and it’s a good thing I did because I was slightly wrong about what I thought I was doing for her.
Had I gotten right to work without sending her the agreement for review/signature (as many of you are doing!), I would have wasted my time and hers.
This is why you do agreements – clarity, certainty, the best possible chance of success in your relationships, which means more work with less time and more ease.
Who knew you could get all that from an agreement?!?
Do you use agreements in all your business dealings? If not, why not? How can I help?
Read more about Alexis on our faculty page – Click Here
Thank you so much for this post, Alexis. You are so on target. I had to learn lesson the hard way the ONE time I didn’t insist on written contract! Agreement does not have to be complicated. Your example powerfully underscored how an agreement can help put client relationship on path to success!
Great Post Alexis!
I have been burnt many times by not having agreements…one I’m still paying for!
It’s a simple fact that ‘business is business’ and ‘there are no friends in business’. You must protect yourself.
Thanks!
@SandraBaptist (on Twitter)
It’s funny, I started out using agreements and subsequently lost a potential pool of business with one group who were friends and didn’t like the idea of having agreements, even with me as the newcomer. Apparently my taking that approach burned at least one bridge there.
I still prefer to have agreements in place, especially when money is on the line. Agreements have helped to clarify expectations as well as details of the project more than once.
One thing that I left out in an agreement (who would have thought to add what I DON’T DO!) did come back to bite me and I now include that as well. I just feel better knowing I’ve stated everything as I understand it.