Running a business is exhilarating. It offers the freedom to design your schedule, pursue your passions, and make a real impact on your clients’ lives. Since moving to France in 2011, I’ve seen firsthand how this flexibility can create the perfect work-life balance. However, coaching, like any business, comes with its unique challenges. One area that requires particular attention is the necessity of having client contracts.
In the early days, many coaches, especially those new to the industry, might overlook the importance of client contracts. I’ve been there myself! Fortunately, my experience highlighted the necessity of these agreements, and I’ve relied on them ever since.
When you’re excited about onboarding a new client, it’s easy to skip the formalities. Both parties are eager and aligned on goals, making it tempting to dive straight into the work. This enthusiasm is wonderful but should not come at the expense of setting clear, professional boundaries from the start.
Despite many positive experiences with clients, we must acknowledge that we don’t live in a perfect world. Here’s why client contracts are crucial for coaches today:
Contracts Safeguard You
While many coaches have great clients, not everyone is as lucky. Non-payment is a significant issue many freelancers face, and without a solid contract, you have little recourse. Late payments can also disrupt your carefully planned budget and cause unnecessary stress. Service providers expect prompt payment per their contracts, and you should expect the same from your clients.
Some coaches also face situations where payment is less than expected due to unauthorised adjustments. A binding contract prevents such discrepancies.
Contracts Protect Your Clients
Contracts aren’t just about protecting you; they also safeguard your clients. Every business relationship is a two-way street, and contracts help ensure mutual understanding and accountability.
I’ve heard horror stories of clients left in the lurch by freelancers who didn’t deliver on their promises. A contract provides clarity on deliverables, timelines, and expectations, protecting clients from incomplete projects or unsatisfactory results.
Contracts Enhance Your Credibility
Starting every new client relationship with a contract demonstrates your professionalism and commitment. It reassures clients that you take your responsibilities seriously and sets a professional tone for your ongoing relationship.
While contracts can’t prevent all issues, they put you in a stronger position should problems arise. Always have your contracts reviewed by a legal professional to ensure they cover all necessary aspects. Over time, as contracts get tailored for specific situations, they might lose some enforceability, which a legal review can address.
Modern Tools for Client Contracts
Today, there are several tools designed to streamline contract creation and management, making it easier for coaches to protect themselves and their clients:
- Dropbox Sign: Simplifies the signing process with legally binding e-signatures.
- PandaDoc: Offers comprehensive document management and e-signature solutions.
- Bonsai: Designed specifically for freelancers, Bonsai provides contract templates, e-signatures, and payment tracking.
- Dubsado: An all-in-one business management tool that includes customisable contracts, invoicing, and client management features.
- HoneyBook: Helps manage client bookings, contracts, and payments seamlessly.
Share Your Experiences
Have you faced challenges with clients that a contract could have mitigated? I’d love to hear your stories and insights…
