5 Reasons Why You Need Strong Contracts For Your Business

May 23, 2022

I see many new wedding pros and business owners skipping the legal portion of their business. Specifically, I see a lack of strong contracts. They might draft a simple agreement or depend on verbal commitments. On this blog, we are going over 5 reasons why you need strong contracts for your business!

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1. Manage Expectations

When working with a new client, they have an idea of what to expect. They have reviewed the service they have booked and may have discussed more details in an inquiry call with you. However, there is still so much room for misunderstandings or disappointment if you do not have a strong contract. In your contract, you need to list exactly what your client is to expect from the services you are performing, when they will be performed, to what you expect from them.

Since so many of you are wedding pros here, let’s go over an example. Say a client hires a wedding planner for day-of coordination. I know this is a controversial term because there is more work that goes into this service beyond just the “day-of”. But how much more work is included? A client might expect full-service planning without a detailed contract – it happens more than you think. Every wedding pro and business owner needs to be super clear about the scope of their various services.

2. Protect Your Business

You need to protect your business at the end of the day. Here are a few cases where a contract will protect your business and ultimately, your team:

Liability: You want to be sure you will not be liable in the case of an accident, injury, or damaged items. As wedding pros, we are traveling to many different locations and are hands-on with many of the wedding items. You want to be sure you are only responsible for your individual service. If you or your team experienced an injury or accident, you want to make sure your contract covers you (along with insurance!)

Policies: We talked about managing expectations. In the case that there is conflict regarding your policies or attempted legal action is taken, you need an iron-clad contract to reduce risk!

Your Work: If you want to protect the privacy of your workflow and make sure you are credited for your work, don’t skip the contract. As a wedding planner, it is so important to me that any photos shared on social media or publications properly credit my business. A signed agreement for this is essential.

3. Increases Trust

Think about it. It’s a major red flag to expect payment without a professional contract! Lay a foundation of trust with your clients and don’t miss out on sales by not prioritizing this legal aspect of your business. A contract keeps both parties in check so you and your client can feel confident moving forward.

4. You Are Hiring a Team

Are your hiring new team members? Just like any other job, they need to sign a contract. Include everything from the agreed-upon pay, hours, job description, and non-disclosure agreement. To grow your business, you WILL need to bring on more team members eventually. Find out exactly how to scale your business with a team after reading this blog.

5. Secures Your Sales

To ensure you are paid in full and in a timely manner, including payment requirements in your contract. This can include exact payment amounts and dates. A verbal agreement is not enough. Even if a client decides to cancel, your retainer and other established payments will be protected

Now, I know this all sounds ideal, but it’s tricky to know how to actually write a legally accurate contract. That’s why, I always turn to The Legal Paige. They have created lawyer-drafted contract templates for a variety of different business needs. Literally, everything you need is available for you. If you are ready to feel confident in the legal side of your business, go grab the contracts you need. Use my code: CAUSEWECAN10 for an extra $10 off your order at checkout!