Many tradespeople have a dream of starting their own business, whether they are a plumber, an electrician, a bricklayer, or other. And whilst many of these tradespeople do start their own small business, not many succeed; and some fail dramatically because of not having adequate general liability insurance for independent contractors. If you have a particular skill and have decided to begin a business as a contractor, you need to know what your clients expect in order to succeed – and what you can do to fulfill those expectations.
Clients expect you to understand – and mitigate – the risks in your industry
The problem with the contractor industry is that it is laden with risks. Risks are there at every turn, whether it’s not finishing the job on time, making major (or even minor) mistakes, natural disasters or extreme weather disturbances, or the acquisition of resources, etc. Your clients know this, and you should know this as well. The key is finding ways to mitigate these risks and continuing to perform to the best of your ability. One surefire way of reducing risk which your clients will appreciate is by having general liability insurance. This is not just about protecting your business – it’s also about satisfying your clients’ expectations that you are a serious and legitimate contractor.
Clients expect you to have good communication
Managing a project involves a keen eye for detail and good organizational skills, but it’s also about making sure that you communicate well – not just with other workers, but also with your clients. Clients expect you to have effective communication skills, and they expect you to be able to explain a project or task in detail, especially if it’s a complicated or time-consuming endeavor. By effectively communicating and being open with your clients, you ensure the building of trust as well.
Clients expect you to have good planning skills
Planning is not just about creating or developing a good schedule for a task or project – it also involves making decisions on what methods you can and should use, what resources you can organize, and what materials you need and when. Making a good plan starts even before a task or project begins, and it continues throughout the task, on a weekly or a daily basis. Additionally, things will not always go according to plan, as your clients may already know – but it’s how you tackle changes in your planning that will make you stand out as a good contractor.
Being a good contractor is also about being financially responsible – you need to invoice your customers properly, and you need to keep accurate and updated financial records, particularly when it comes to your cash flow. Understand your contract and all its details from top to bottom – this isn’t just for your clients’ protection, but for your protection as well.
Entertaining clients has become standard practice for most corporations, whether those clients come to you from around the world, or you travel to them. Businesses tend to understand the value that can come with entertaining clients, including completing deals and fostering stronger relationships. At the same time, it can be tricky to master some of the ins and outs of these scenarios.
There are things to consider such as how to manage technicalities like business expense receipt submission, to what would be considered professional in an out-of-the-office situation.
The following is a general rundown of what to know about entertaining clients in any industry.
While many large corporations do have a good deal of client entertainment and outside meals happening, they might also experience fraud or inefficiency when it comes to documenting expenses. This can be avoided with a modern expense management software solution, which will not just make it easier for employees to keep track of their expenses, but it will also simplify oversight and create visibility and transparency.
If anyone in your organization is responsible for entertaining clients, a comprehensive expense reporting solution should absolutely be in place.
This eliminates the gray area that can come with using company cards, submitting receipts and defining things such as the reason for the meeting.
It’s also important that along with using a software solution, corporations have a well-defined policy in place for managing expenses and entertaining clients.
Keep It On Track
When employees are entertaining, it’s important that they keep the conversation on track with the business at-hand. There are IRS guidelines in place stipulating that entertaining has to be directly related to business.
While this can get really murky, as an employer you have to be firm on this for your own tax-related purposes, and also to make sure you avoid fraud when your employees invite clients for meals.
In general, only 50 percent of an entertainment-based meal is deductible according to the IRS, although this might not always be the case.
This might seem obvious, but all-too-often employees will start to think entertaining clients is synonymous with party time. They may be drinking too much or be too loose-lipped, and not only can that be problematic for your company’s reputation, but it can distract from the business that’s supposed to be going on, and can lead to even bigger problems for example if your employee starts to become inappropriate.
It’s important that you train employees on how to maintain a strict sense of professionalism so that lines don’t become blurred when they’re out with employees.
Above all else, your goals as a corporation when you have employees responsible for entertaining clients to ensure that a system is set up to prevent fraud and abuse, and also keep costs in check. There should be precisely defined guidelines for spending, and you should encourage employees to stick with policies through the use of expense reporting software. It’s also important that clients are well-trained on what’s appropriate and what isn’t, both regarding spending and reporting, and also behavior when they’re representing your company.