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No handshake or verbal commitment in Small Business

Unfortunately, “but he promised” no longer means much in today’s business world. Few and far between will you find a “handshake” that will close a deal. Many owners tell me that they accept the handshake of a client and that is how they have always done business. When I hear the grumbling is when a “handshake” deal goes sour and money and time are lost; in some cases, enough money is lost to seriously impair the survival of the business.

Some “old timers” will continue to do business on a handshake; I recommend that everything be put in writing and agreed to by all parties, at least when a large sum of money or time is involved.

It’s time to set a company policy on all orders for products and services. Even if you have not had a bad experience, now is the time to prepare yourself and avoid potential future problems. All small businesses should have an attorney to help them with all contract preparations; it’s an investment that can pay big dividends should any issues arise.

If a potential client/customer does not want to enter into a contract when ordering, than chances are you may never get paid.

It’s a cruel business world and a small business needs to take all the precautions necessary to insure survival and growth.

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Think like a man of action, act like a man of thought.

Henri Bergson

Have a great day!

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