As an Entrepreneur, You'll Need to Be Aware of How Your Time is Spent, Then Take a Little Preventative Action.
By Alvin Apple
My friend Darren recently started his own database administration business, working from home. Like a rapidly increasing number of Americans, he is selling a service instead of a product. The problem with independent business owners who sell a service is that they have to take on many responsibilities that they're not used to dealing with.
When a client went bankrupt and refused to pay, Darren had to take the client to small claims court. Because the service had already been performed, he had to collect the fee. Unlike a product, a service cannot be repackaged and returned with a receipt.
Darren is forced to deal with many such responsibilities, such as client relations, accounting, advertising, and administrative duties. With all these added responsibilities, how can an independent service provider get any work done and still have time to actually carry out the service?
To get the most out of every working day, you need to think ahead and do some preventative planning to avoid time-stealing hassles. Here are some common situations service providers deal with, and ways you can save yourself time and sanity:
1. The Client--As a service provider, you are often forced to deal directly with the client. What if the extent of your social skills is debating the intrinsic value of the X Box vs. the Game Cube? You aren't being paid to socialize or be someone's pal, so you may resent having to do the work of a project manager.
Playing nice with others is probably unavoidable. What you can do is try and maintain a base of clients with whom you have good communication and personal chemistry. We have all experienced the frustration of trying to convey an idea to someone who is operating on a completely different wave length. You can spend hours explaining something to them, and they still won't get your point. Time is money, so choose your clients wisely.
2. Satisfaction--Clients and customers often have a different idea about when you're done providing your service. Satisfaction is subjective, so they may come back saying, "I thought this was included in the price."
If you don't have a contract signed by the client, it is very easy for them to insist that your job isn't done yet. Always provide a contract detailing the exact services that will be provided. Include descriptions of these services, so the client can't say he/she thought you meant this or that. If there is some dispute, you don't need to spend time in small claims court. Just say, "You should have read the contract."
3. Fee--If you are in a slump and business is slow, you may feel obligated to accept projects for a substantially lower fee. If you are going to lower prices, don't lower them by much. Sweeten the deal just enough to increase a client base, but not enough to lower your pay to minimum wage.
Attention to the above issues can keep you on track and be more productive. Good luck with your business.
Alvin Apple helps everyday people start businesses they will enjoy. Then he teaches them how to succeed. Read all his helpful strategies, including his latest article, "Become a Recognized Expert in Your Field and Increase Your Sales" at
http://AlvinApple.com
You may reach Alvin by calling 801-328-9006 or by emailing
alvin@drnunley.com
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