February 27, 2020 – Hey Entrepreneurs! In the past few weeks we’ve heard of some challenging situations that our community members have experienced with service providers. So please take a few minutes to read over these high level reminders so you don’t make mistakes that could be very costly to you in the long term.
Engaging Service Providers: Check references! Also the agreement should include payment terms and defined deliverables and you should not be making full payments up-front. They should be staged with the deliverables.
Supplier agreements: when you are hiring a firm – particularly one that has access to your confidential and/or proprietary information, make sure you have an agreement signed before information is exchanged and the work begins. The agreement should address confidentiality, non-competes and ownership of work product (definitely if this is product development related!).
Paying Providers: Don’t allow a service provider to access and make auto-withdrawls from your bank account. Instead you should set up payments and have control of managing changes as needed.
Just remember….be diligent up-front or you may have to pay for it (literally) in the end. Check out these additional tips on finding the best service providers!