It is your responsibility as a business owner to reduce the risk for your business. It is impossible to prepare for every outcome, but you can take precautions to protect your investment. Regardless of your industry, clients play a major role in doing business. To succeed in business, you must know your clients and understand their habits and motivations.
Here are five ways you can protect your business when it comes to taking on and handling new clients.
1. Stay in Control
When dealing with clients, you must stay in control. Make sure you are the one making the first move. If you organise the meetings, set schedules, or make the calls, you set the tone of the relationship. Maintaining control gives you an edge and puts you in the driver’s seat for each venture.
2. Get Professional Indemnity Insurance
Insurance is one of the best ways to protect your investment. Professional indemnity insurance defends your interests if you offer a piece of advice or poor service to a client, and it results in them making a loss.
Even though not a legal requirement, getting professional indemnity insurance is a good business sense as it will protect your reputation and financial position if your client makes a claim against you or pursues legal action.
3. Take Care of Your Files
Many companies do their work on computers. It is vital that you make sure of the safety of your business files. Invest in security software that protects your business from hackers and viruses.
A virus can lead to your business, not being able to complete contracts. You can lose an important client or supplier files to hackers. Clients and supplies could take legal action against your business. It is also a good idea to back up your files to avoid losing your data to a breakdown or theft. If you store files at the office, keep them in a flameproof safe. It is also advisable to keep your backup files in a different location.
4. Set Realistic Expectations
The best way to avoid misunderstanding and disagreement is to manage the client’s expectation of your work. This includes your final product, timelines, and your availability.
By managing client expectations, you can plan around your deliverables, even when you are early. Offering your client’s, a realistic target can prevent future issues.
With a new client, have a lawyer draft a contract for both parties to sign. The contract will contain the terms of the agreement; the work required, and a deadline. It helps to have a document to reference if trouble arises along the line.
5. Be Careful What You Do and Say
Your business image is crucial to keeping your clients. It is why business owners and staff should avoid getting involved in dubious activities. It includes making offensive comments or being linked to unsavoury people. You should limit potential conflicts of interest as these cases can affect your reputation and that of your business. It can even lead to a loss of business or clients taking legal action against your business.
A business owner bears the responsibility of defending their company’s interest and investment. With these tips in mind, you can protect your business as you expand your reach.