How,Protect,Yourself,amp,Your, DIY How to Protect Yourself & Your Business


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© 2003 Vishal P. RaoAs a business owner, you already know how important it isfor your customers to feel safe about doing business withyou. After all, if a customer even suspects he may notreceive everything he was promised, then chances are he'staking his business elsewhere. So to prevent that you offerguarantees, secure payment methods, prompt customer service,and more. You do whatever it takes to show each customerthat you are sincere and trustworthy.But what steps do you take to protect yourself and yourlivelihood?Too many business owners spend all their time worrying abouttheir customers' security without thinking of their own,even though small companies must often deal with customerfraud, non-paying clients, and more. Just as you've taken steps to ensure that your customers aresatisfied with their buying experience, so should you feel comfortable and secure by taking a few precautions of your own.1. Get Everything in WritingWritten contracts are not just for helping customersunderstand what they can expect to receive for their money,they are about laying down the ground rules for yourbusiness relationship. When these guidelines are in writing,nothing is left up for a debate or becomes amisunderstanding. Both parties can be assured that their interests are being protected and both should have a clear understanding of their rights and responsibilities in the event that something goes awry.A good example would be if you sold a toy which a parentreturned six months later because it was broken. Without acontract in writing specifying the time limits andconditions of your return policy, you might end up with anongoing battle wit the customer which could result in lostbusiness and even lawsuits.Written contracts also don't need to be crafted by lawyers.You can write everything out yourself in ordinary, easy tounderstand language. When you and the customer sign it, itbecomes a legal and binding agreement. It's really thatsimple.2. Don't Be NaiveSo many people in business get burned by their customerssimply because they are too trusting. For example, some ofyou may have shipped products before the customers' paymentscleared. Or you may have completed agreed upon work withoutasking for a deposit. Both are risky propositions as manynew entrepreneurs discover the hard way, especially if theydo business online.You can protect yourself by always asking for a partialpayment in advance and by always waiting until a customer'spayment has cleared before you ship their products. Anothermethod of protecting yourself and your customer is by usinga service such as Paypal.com to handle your transactions.The service protects you from non-paying customers andoffers your customers protection for lost, damaged, orunshipped products.3. Know Your Local LawsOne of the best ways to protect yourself is by becominginformed. When you know your legal rights, you'll have abetter understanding of how to effectively deal withtroublesome customers. For example, some states don't allow you to limit a customer's right to return a product beyond a certain time limit, so you may not legally be able to enforce a guaranteeof only one week. On the other hand, if you know your rights, then you'll also understand what steps to take in case legal action on your part is necessary. For instance, you may want to send a certified letter demanding payment before you file a lawsuit. Additionally, if you appear knowledgeable about your rights, many customers might think twice before failing to pay or committing fraud.The bottom line is that you deserve to be protected just asmuch as your customers. A few advance precautions now canensure that you'll have a long and satisfying businessrelationship with your customers.

How,Protect,Yourself,amp,Your,

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