Mind Your P’s & Q’s with Service Providers

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!