Thursday, 8 December 2011

Business contracts

Business contracts and agreements

A critical win-win relationship is needed

A good experience will prolong and strengthen the relationship between you and supplier/ distributor.

·         You need to be informed about your customers or partners’ needs and how they will benefit from the relationship.

·         A relationship has not been established just because you think it has- both parties need to be involved.

·         Relationships are initially based on attitudes. Trust and honesty and then ties are formed which more can be earned and sustained

·         Relationships develop a mutual way of thinking: this will increase the longevity, frequency etc





What’s appealing about my business?

·         Generator:

o    I am the generator alongside my partner.

·         Realisor:

o   Income source

o   Local business prospects

o   Chance to improve skills

o   Step into industry

·         Distributor

o   Local means less fuel, more eco-awareness, cheaper

o   Interest in the local economy

o   Creative outlet with minimal costs

·         Customer

o   Local interests

o   Niche and special

o   More personal

o   Offers personal courses and meetings/ events

o   More accessible

What can I offer?

·         I would offer regular business

·         Cheaper tax, postage etc

·         Industry/ job/ experience

·         Variety of activities and design/ briefs

·         An interesting niche speciality

Is that enough to make them want to work with me?



What do I need to do to make this happen?

·         Workspace is home office at first

·         Engage with print and web specialists

·         Experiment with own skills to be developed

·         Market ourselves to local areas with our personality infused events etc

·         Be innovative in our communication

Additional resources, skills, people, information needed?

·         A variety of local services that would be interested and useful towards expansion

·         Adobe Photoshop, illustrator, Dreamweaver etc

·         Website domains

·         Advertising space

·         Information on clientele

·         Information on local history, inhabitants, celebrity and global awareness and sites etc

·         Adjustable mannequin

Impact on finances and planning?

·         Need market research

·         Plans to research

·         Finances to travel and explore

·         Planning new places, source small and interesting places

·         Might take longer to produce magazine?



What sort of deal can you expect with suppliers and partners?

·         What you want out of the relationship

·         What you are offering

·         Why they will benefit



Specification

·         A description of the project based on the client brief

·         How much time it will take you to deliver

·         When you will provide progress reports or staged viewings of work in progress.

·         Number of changes a client can make without charge

·         Aesthetics

·         Penalties I will incur if not delivered to schedule

·         Price details for all elements of the project including management fees, print costs, VAT etc

·         Payment terms (what stages and how you will get paid)

Payment terms

If the job will take a while set a series of staged payments i.e. 40% on the project being commissioned, 30% mid-stage, and 30% on completion.

For expensive materials ask the client to pay for these upfront and the remainder on completion.

Clearly state payment terms on invoices i.e. 7 days or 30 days etc

Contract agreement signoff

Send 2 copies of the contract/ agreement to the client to be signed off and make it clear that until the signed copy is received work will not start. This becomes a legally binding agreement with clear terms and conditions.

Use a solicitor? Remember you are protecting yourself and customers form misunderstandings, disagreement and crossed wires.

Sale or return

Negotiating a selling figure with a gallery or outlet of which they will take a percentage when the item is sold.

Pay for materials up front

A sale or return basis is used to determine how well an item will sell. Consider reducing the number of items within this basis.

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