The law won’t force you, or most other entrepreneurs, to have business contracts. But you need a contract if you’re a fan of things such as getting paid for your products and services.
Let’s take a look at two reasons to have a contract between you and the people you’re doing business with.
1. Get paid on time.
If your clients decide to not pay you, you’re out of luck. A contract tells clients when they will get an invoice from you and when they need to pay their bills. If they don’t cooperate, a legally enforceable contract will help you with legal action you take to receive payment.
2. Give good customer service.
If a client has a problem with your business, the client can look at the contract and it tells them all the information they need to try and resolve it. The contract will explain returns, refund and repair policies, warranties, and how to file complaints with your business. Sharing these details in writing makes your client feel they are getting a good service.
So, take the time to have written business contracts with your vendors and your clients. This helps you keep growing, keep happy customers, and keep your sanity.