© 2003 Vishal P. Rao
As a business owner, you already know how important it is
for your customers to feel safe about doing business with
you. After all, if a customer even suspects he may not
receive everything he was promised, then chances are he's
taking his business elsewhere. So to prevent that you offer
guarantees, secure payment methods, prompt customer service,
and more. You do whatever it takes to show each customer
that you are sincere and trustworthy.
But what steps do you take to protect yourself and your
livelihood?
Too many business owners spend all their time worrying about
their customers' security without thinking of their own,
even though small companies must often deal with customer
fraud, non-paying clients, and more.
Just as you've taken steps to ensure that your customers are
satisfied with their buying experience, so should you feel
comfortable and secure by taking a few precautions of your
own.
1. Get Everything in Writing
Written contracts are not just for helping customers
understand what they can expect to receive for their money,
they are about laying down the ground rules for your
business relationship. When these guidelines are in writing,
nothing is left up for a debate or becomes a
misunderstanding.
Both parties can be assured that their interests are being
protected and both should have a clear understanding of
their rights and responsibilities in the event that
something goes awry.
A good example would be if you sold a toy which a parent
returned six months later because it was broken. Without a
contract in writing specifying the time limits and
conditions of your return policy, you might end up with an
ongoing battle wit the customer which could result in lost
business and even lawsuits.
Written contracts also don't need to be crafted by lawyers.
You can write everything out yourself in ordinary, easy to
understand language. When you and the customer sign it, it
becomes a legal and binding agreement. It's really that
simple.
2. Don't Be Naive
So many people in business get burned by their customers
simply because they are too trusting. For example, some of
you may have shipped products before the customers' payments
cleared. Or you may have completed agreed upon work without
asking for a deposit. Both are risky propositions as many
new entrepreneurs discover the hard way, especially if they
do business online.
You can protect yourself by always asking for a partial
payment in advance and by always waiting until a customer's
payment has cleared before you ship their products. Another
method of protecting yourself and your customer is by using
a service such as Paypal.com to handle your transactions.
The service protects you from non-paying customers and
offers your customers protection for lost, damaged, or
unshipped products.
3. Know Your Local Laws
One of the best ways to protect yourself is by becoming
informed. When you know your legal rights, you'll have a
better understanding of how to effectively deal with
troublesome customers.
For example, some states don't allow you to limit a
customer's right to return a product beyond a certain time
limit, so you may not legally be able to enforce a guarantee
of only one week. On the other hand, if you know your
rights, then you'll also understand what steps to take in
case legal action on your part is necessary.
For instance, you may want to send a certified letter
demanding payment before you file a lawsuit. Additionally,
if you appear knowledgeable about your rights, many
customers might think twice before failing to pay or
committing fraud.
The bottom line is that you deserve to be protected just as
much as your customers. A few advance precautions now can
ensure that you'll have a long and satisfying business
relationship with your customers.
About the Author
Vishal P. Rao is the editor of Home Based Business
Opportunities - A website dedicated to opportunities, ideas
and resources to help you start and run a home based
business. Visit him at:
http://www.home-based-business-opportunities.com