Every business owner has been screwed by a client or supplier at some point. Whether it's a client failing to pay their account, or a service provider rendering poor performance, these matters essentially come down to a breach of contract. In this article, we discuss some ways you can protect your business by minimising these incidents.
Unfortunately, many people simply do not, or cannot, manage their finances and lives properly. Clients may fail to pay their accounts, whether through negligence, bad financial management, dissatisfaction with your service, or plain old bad faith. On the other side of the coin, many service providers are simply unwilling or unable to deliver on the promises made to you in their sales pitch. That's where commercial attorneys can help you protect your business.
When your interests conflict with those of a client or service provider, there's sure to be a breach of contract on the horizon. But how do you protect yourself from losing money or having to deal with bad service?
It comes down to proactive preparation. Never simply sign a prospective service provider's contract without first scrutinising the terms, and negotiating terms where you can. We've written at length about the Procurement Mindset and enforcing KPIs on service providers. When it comes to clients, keep them on a tight leash. Keep strict payment terms and enforce them the second a client breaches.
Read more about how to protect your business in the related articles below.
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