Why you should set rules & regulations in your Business for your clients.

Why you should set rules & regulations in your Business for all your clients.

Like every household, a company must have sets of rules and regulations for their clients, to use them as a guideline and help in controlling your business.
In business you are going to deal with people from different backgrounds and with different expectations which you will need to accommodate.
Therefore you really need to have certain rules that will help deal with this clients and also help to ensure that all your clients are treated fairly and equally.
If you will be just going with the flow of your clients,  many clients will take advantage of you which will kill your business in the long run.
Here are just three reasons why you should consider setting this rules:

1. To manage effectively your Company Cashflow
As I have mentioned that you will be dealing with people from different backgrounds, some will not be able to pay cash immediately and ask for you to offer your services or products on credit in hope of paying later. It will not be wise to chase them away but you should be wise and accommodate them, because this is also money in the business,  though not immediately but later, you therefore need to have your payment terms in place so that they also know and agree when you will expect payment from them.
To be offering credit is better than not having clients at all,  but it is as well risky, hence you need to have this terms in place to be able to control them.
It also helpful to offer this credits because it also creates a long life buying relationship with your clients.
Some clients might say they are interested in your products/ services but cannot afford to pay the whole amount at once,  you are also not to decrease your prices to accommodate them!  You have reasons you charged those prices, if you decrease them and force yourself to be cheaper you are not going to meet the goals you wanted to achieve initially, this will as well kill your business, therefore the only solution will be to offer credits. Payment terms will help to control your Cashflow. Have the terms communicated to your clients, agree upon and sign the contract because some clients just don’t care how non-payment will affect you, that’s why you need to have them in place.This is to make sure you are running your business at your own terms not theirs, as theirs will be unstable. For your business to be running consistently your Cashflow need to be functioning effectively.

2. To avoid favours that will damage your business
Some of your clients will be your friends, family members, or people you generally know. The same rules and regulations that you will have in place will be applied to them, then you know you don’t have to feel bad and lower your charges because of people you have a certain relationship with. It should remain business as usual. Some will want to take advantage of the relationship and try to negotiate the prices just because of the relationship. If you operate your business based on relationships you are killing your business. Business should not be mixed with pleasure. You should be shameless of this, it’s business! Make it a habit that you produce same rules and regulations the minute any individual shows interest in buying your products or services. You are running a business not charity.
A healthy business must generate Profit.

3. It gives a positive (good) image to your business.
It sure does gives a very professional image to be having this set of rules. Some of your clients will be attracted by how you do things, they will have more trust in you, knowing that you have this proper rules written down in black and white and made them sign. It will therefore ensure to them that no party will want to take advantage of the other, what you agreed on will remain that. Your business may get a more favorable attention  if you understand the rules and follow them.

Please do not be bias on your rules, Be firm on them and Stand your ground. When you follow the rules, the company can focus on accomplishing it’s goals.

Run your Biz effectively!

Prepared by Dikeledi Seoloane – On behalf
of Matsobanemetja Business Consulting (Business Coaching)

Why you should set rules & regulations in your Business for your clients.

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By Miss Dee on behalf of Matsobanemetja Business Consulting

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