Being my own boss is great. It allows me to manage my time however I want, and that enables me to do a lot more of the things I enjoy in life. In fact, since I moved to France back in 2011, my work/life balance has been better than at any other point in my life.
However, being a professional virtual assistant isn’t without its challenges, and one area that I have had to give special consideration to is the need for client contracts.
Many freelancers – especially those just starting out – often overlook the importance of having some kind of contract with their clients. I know I did! Luckily, several of the virtual assistant training courses I completed highlighted that client contracts were nothing short of a necessity, and I’ve used them ever since.
It can be very tempting to overlook the paperwork when you’re in talks with a potential new client. Both of you are inevitably excited and singing from the same hymn sheet in terms of what you want to achieve, and there is a massive urge to want to jump in and get to work. This kind of enthusiasm is natural and definitely isn’t a bad thing, but you must make sure you get a few small formalities out of the way first.
Everyone I’ve had the pleasure of working with so far as a virtual assistant has been honest. Let’s face it, in an ideal world we’d never need contracts for anything. The reality, though, is that we don’t live in an ideal world, which is why contracts are used throughout our daily lives.
Here are a few reasons why contracts are so important for freelancers today:
Contracts protect you
As I mentioned earlier, I’ve been extremely lucky with all my clients, but not everyone is. Non-payment is the biggest issue faced by many freelancers and without a watertight contract there’s little recourse for them.
Late payments are also a problem, especially when you are living on a carefully-calculated budget and have bills to pay on specific dates. Your service providers expect you to pay them as per your contract and that’s why you should expect the same from your clients.
Some freelancers also find that when they eventually do get paid the amount isn’t what they were expecting. Their clients have seemingly made adjustments, and the lack of a binding contract has enabled them to do so.
Contracts protect your clients
It would be wrong to think that contracts should only be put in place to protect the freelancer. All of our business relationships are two-way affairs, and that’s exactly how contracts work.
I’ve heard many stories where a client hired the services of a freelancer and ended up high and dry because the project was left unfinished, or the end result was completely different from what they expected and ultimately served no purpose for them.
The whole situation is made even worse if the client also loses money in the process. It could mean they are unable to hire someone else to complete the project and it leaves a bad taste in their mouths about working with freelancers.
Contracts boost your credibility
We all like to think of ourselves as consummate professionals. So why would you even consider entering into a new client relationship without a contract?
By starting every new project off on the right foot with a contract in place, you are automatically showing your client that you take your responsibilities seriously and that you mean business. It affords a sense of reassurance and sets a professional tone for your relationship going forward.
While a contract might not be able to prevent bad things from happening or relationships going sour, it will stand you in a stronger position should the worst happen.
As a final point, it’s always best practise to get any contracts that you are considering using checked over by a legal professional to ensure they cover every aspect you need them to. As contracts get edited to suit different purposes, they sometimes lose their enforceability, which is something that can’t be fixed after the event.
Have you ever had any problems with clients, which may have been okay if you’d have had a contract in place? I’d love to hear about your experiences…