#179 Just because others do it, doesn't mean it's right
Think back to when you started your business. I bet you were full of excitement, and nervousness.
So maybe, like a lot of people, you looked around at successful businesses and decided to follow their lead. It makes sense, I mean if it’s working for them, it should work for you too, right? Wrong.
When you look at another business, you’re only seeing the surface. Even if they look like they’re doing well you can’t be sure their methods are legally or strategically sound.
One common mistake I see is in the sequencing of contractual documents and invoices. For example, tools like Dubsado make it easy to send a proposal that, once accepted, automatically generates an invoice, and then the client receives the contract.
While it might seem convenient, it’s not compliant with Australian Consumer Law, and doing so can invalidate your agreements. As a service provider, you must provide your terms and conditions or agreement before your client decides to engage you. If you later need to rely on those terms, they won’t be enforceable because the client didn’t agree to them upfront. This small sequencing error can have big consequences.
Each business is unique, and what works for one might not work for another. I work closely with my clients to ensure that their onboarding processes, documentation, and service delivery sequence are customised to suit how their unique business operates. Not only does this keep you compliant with the law, but it also reduces misunderstandings with clients.
Another mistake I see comes from businesses selling services online—think courses, memberships, or subscriptions. The business owner gets so excited to launch that they send out the sign-up link before having the necessary terms and conditions in place. They often think they can apply these terms retrospectively, but that’s far from the truth.
Participants must have the opportunity to read and agree to these terms before paying for the service. If you miss this step and need to play catch up, you’ll have to offer refunds to those who disagree with the terms subsequently introduced. So, make sure your terms and conditions are properly in place before any sales or sign-ups occur.
The message here is simple: copying their practices without professional insight can leave you exposed to legal risks and undermine your professional credibility. Take the time to invest in professional advice to ensure your business is not just legally compliant but set on a path for sustainable success.
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[00:00:00] Tracey: Hello, everyone. Welcome back to another episode of the Rise Up in Business podcast. Today, I'm going to talk to you about something that I find myself talking about a lot lately with new business owner clients who reach out to me to talk to me about what they've got happening in their business, their processes and systems and their documents. And that is just because others are doing something doesn't mean it's right.
[00:00:46] Tracey: The conversation usually starts with Tracy. Never had a lawyer. I've put these documents together myself over time. I've been lucky so far because nothing's gone wrong, but I know that these documents are really important and the times come where I'd like to work with you, please to draft my documents and talk to me about all the things I need, and I love that.
[00:01:06] Tracey: It's so honest and open and I appreciate the trust so much. And we dive in and have a conversation around. what it is they have in their business in terms of documents, terms and conditions, or an agreement. Do they use proposals, quotes, all the things.
[00:01:22] Tracey: We go through that so I can understand what they're currently doing. I give advice, what we need. We put a proposal together. We work together. It's great. What I'm finding myself though, engaging in quite a lot lately is explaining to people that just because others are doing something in a particular way doesn't mean it's right.
[00:01:44] Tracey: And so, what comes out in these conversations is the business owner talking to me has observed another business that they think is doing well.
[00:01:54] Tracey: And they've observed how it is. They onboard their clients and how they deliver their services and how they Bill, [00:02:00] but they don't know the intricacies of what's going on behind the scenes, but they just assume from conversations they've had, either with the business owner themselves, one of their team members, that's a big one to flag.
[00:02:11] Tracey: And there's a podcast episode coming up on this later about what our team members. Should and shouldn't be disclosing to third parties, but anyhow, park that for a later episode. Stay tuned. But they've heard from someone how a business is doing things, and they think that that's right. And so, I need to come in and explain why, in fact, it's not right.
[00:02:30] Tracey: And why not only is that business leaving themselves exposed, but the client that I'm speaking to is leaving themselves exposed by making assumptions that everything others are doing is right. And they just going to copy it. So, we unpack it. And I take the time to work with my clients from talking about onboarding processes and systems.
[00:02:49] Tracey: To documentation, legals, how you issue them, when is a binding contract, service delivery, invoicing completion. We step it all through so that I can make sure the advice I'm giving to my very lovely new business owner client is tailored for that business and the way that business delivers services for their clients.
[00:03:11] Tracey: What I'd like to say here is something I've said on here so many times before, and that is there are no shortcuts and DIY has no place when it comes to legals. And so that means your legal documents, your client service agreements, your design agreements, whatever you'd like to call it, and your processes and systems and how you onboard your clients.
[00:03:32] Tracey: If you're a long time listener, you'd have heard me say so many times that no two businesses are the same. So despite what you might think that your business is very similar to your designer friend or your coach friend or your consulting friend down the road, you actually don't know the intricacies of how they're operating.
[00:03:46] Tracey: So to make assumptions can leave you exposed. It's quite risky to do that. So the biggest myth I want to combat right here right now is It's not okay to issue a new client an invoice before you issue them [00:04:00] with your terms and conditions or your agreement. I know a lot of creatives use Dubsado and I know it might even be a default because so many people seem to do this.
[00:04:09] Tracey: As a first attempt where the sequencing and Dubsado is set up so that you can issue your proposal, your client signs it, the invoice automatically goes out and then they get their contract. That's not okay. And just because others do it that way, and they have professionals helping them with their Dubsado setup doesn't mean that it's okay.
[00:04:27] Tracey: So for Australian law, that doesn't comply with your obligations as a service provider. Under the Australian Consumer Law, it says you must Provide your terms and conditions or your agreement to your client so they can consider them before they decide to engage you. So issuing an invoice for payment before they get those terms or before they get that contract is not consistent with that.
[00:04:50] Tracey: It's not okay. What that means for you is if you do that and you get yourself into a situation later where something tricky has arisen, misaligned expectations, a dispute, whatever it might be, when you come back to want to rely on your terms, or your agreement, you're not going to be able to. It will not be enforceable because you didn't issue it in accordance with the consumer law requirements.
[00:05:13] Tracey: There you go. I've said it plain and simple. I say it often. I've said it here. That's not okay. So, the sequencing is really important.
[00:05:20] Tracey: If you're challenged or questioned on whether or not you're doing things the right way in accordance with the law, or whether you are setting yourself up for success, it's not an answer or a defense to say, “Oh, but such and such does it,” or “Oh, but other people do it like this or my industry. Everyone in my industry does it.” My gosh, if I had a dollar for every time someone has said to me, Oh, but this is really standard in my industry.
[00:05:44] Tracey: Chances are if you're a creative, a coach or a consultant. I probably have more exposure to what's actually common practice in your industry than what you do because of the significant number of clients that I act for in these industries.
[00:05:59] Tracey: So when it comes to sequencing, whether you are a coach, a creative or a consultant, issuing your proposal or your scope of work document whatever you want to call it, issuing that first, either along with your terms and conditions or your terms and conditions can follow once they accept that proposal or quote, that's fine.
[00:06:21] Tracey: Having that accepted before you issue your invoice is really important. And it doesn't matter that people down the road or other people in your industry don't do it that way. It doesn't matter because this is how it needs to be done for you to be protected both legally, but also from a professional perspective, because you want to set yourself up for success with your clients.
[00:06:39] Tracey: So you want to be able to manage expectations right from the very beginning. Right until the very end. So thinking about your sequencing is really important. Not just from a legal perspective, because I'm telling you what the law requires, but from a business and professionalism perspective, so that you can make sure that you're not only meeting client expectations but that you are exceeding them.
[00:06:59] Tracey: Some businesses do things differently and they don't have proposals or quotes. Instead, they will have an agreement that they go straight to. So, it's a services agreement or a client services agreement. It's a design agreement, whatever you'd like to call it. And that agreement is the entire contract.
[00:07:15] Tracey: It has a schedule often at the back where you edit particulars in relation to the services and the pricing and how things will work. And the client signs that upon acceptance and then the invoice follows. That's fine too. Whichever way you operate, whatever aligns with your business practice, make sure that you're taking advice from the experts.
[00:07:38] Tracey: So a business lawyer who has experience with your industry and who knows the consumer law, make sure you're taking your advice there rather than observing what others are doing and then making an assumption that you're getting it right. Because if you're getting it wrong, by the time you realise it could be too late, because the horse may have already bolted in terms of an issue arising with a client [00:08:00] and your agreement not being enforceable, which means you can't rely on it.
[00:08:04] Tracey: So there's effectively nothing in place. We don't want that. That's the first example I want to give because it's oh so common and I'm having this conversation so much. But the second example I want to give around this topic of just because somebody else is doing it doesn't mean it's right, is when a business is selling services online.
[00:08:24] Tracey: There is a process here as well, and this is the second most common one I see. We're talking things like online courses or memberships or subscriptions and a service based business has this fabulous offering and they're so excited. They go create a sales page or send emails to invite people and send a tailored link.
[00:08:44] Tracey: Sign up with me. I'm so excited. Oh my gosh, this is a great offering and I can't wait to get it out into the world. Fantastic. They send the link out or people come to the website to sign up. They hit sign up now or buy now or whatever it is they enter in their payment details and bang they're away.
[00:09:01] Tracey: There's no terms and conditions there. Big problem. Then the business owner reaches out to someone like me and says, can you prepare these for me? , these terms and conditions for this fabulous new offering, which I'm only too delighted to And this is the example I'm giving here that business owner doesn't want to then send out those terms and conditions to people that have already signed up and say, “Hey, here's my terms and conditions, have a read, let me know if you've got questions, but of course, if these don't suit and you want out, I'll give you a refund”
[00:09:31] Tracey: Because that's what you have to do if you didn't issue those terms. in advance before they paid their money. The business owner just simply wants to upload those onto the website so that future people will be able to tick the box to agree to those when they're signing up. This is wholeheartedly the wrong way to approach it.
[00:09:48] Tracey: And a lot of business owners have said to me, Oh, but my coach did it that way. Or my mentor did it that way. It's okay. It'll be right. Nothing will go wrong. I can't subscribe to that. Unfortunately, I can't say to you, sure, let's do the wrong thing and just [00:10:00] hope for the best. That's just not what I'm about on any level.
[00:10:04] Tracey: What needs to happen, ideally perfect world is that you've got those terms and conditions developed before you start selling people into your course or your offering or your membership so that it's set up on the website so that members or participants can tick the box. To say by ticking this box, I agree for these terms and conditions, because that's how it needs to happen.
[00:10:24] Tracey: But if it didn't happen, if the horse bolted first and you're playing catch up and you're reaching out and you're saying, Tracy, I've got a few people that have signed up to this, and I know it's going to be amazing, and can you please help me with my terms and conditions?
[00:10:37] Tracey: We then need to make sure that we do the right thing in sequence. To make sure that the people that have already signed up have got notice of these now have an opportunity to read and consider them and have an opportunity to exit and obtain a refund if they wish.
[00:10:52] Tracey: So if they're not happy with those terms and conditions, we can't force them on people retrospectively, and we can't just simply. Add them into a portal and pretend like they're going to be binding, even though the person didn't have them when they signed up. That happens so often, you would be surprised. You really would be surprised.
[00:11:10] Tracey: And this is just simply because of lack of knowledge, nothing else. Just because business owners don't realise how important these terms are, or they don't realise the sequencing here and why it's so important because they've spoken to their coach or their mentor or their friend who also has a live offering or launched an offering recently, and they did it a different way.
[00:11:30] Tracey: So again, what I've been saying here so much is just because someone else is doing it that way, doesn't mean it's right. Just because your coach or mentor did it that way. And you think that for all intents and purposes, they are a raging success. They may be, but that doesn't mean that the way that they're doing it is right.
[00:11:48] Tracey: So if someone reaches out later and says, Hey, I'm halfway through this program and I'd like out, please. I want a refund. You're going to need to give it same for your coach or your mentor. If someone gets halfway through or all the way through and says, this really didn't deliver [00:12:00] me the results that I wanted.
[00:12:01] Tracey: I understood that I would have achieved X, Y, and Z by now. And I haven't. I'd like a full refund please and even worse, I've got a claim against you for damages, actually, because if I had have gone to Joe Bloggs over there, I could have actually achieved what I wanted to. So I've actually gone backwards since doing your, course or your program or your membership.
[00:12:20] Tracey: So there's a whole range of things that you can be exposed to when you're getting these things wrong. And you don't have a leg to stand on if you haven't got your sequencing right. And if you're not able to rely on your beautifully tailored terms and conditions that were done for you by someone who knows what they're doing.
[00:12:38] Tracey: So that's my message today in this episode, and they're two different industries, but two really common examples that come up time and time again. And if you're a long-time listener, you know, by now there's no judgment here. I'm not judging. I'm simply sharing information and knowledge to empower you because when we know better, we do better, and now you know.
[00:12:57] Tracey: So, remember just because somebody else is doing something doesn't mean it's right. And please make sure you take the time to get your advice from the experts because you do it once you do it properly and you're setting yourself and your business up for long term sustainable success.
[00:13:14] Tracey: And I am so here for that. Thank you so much for listening. I value your time. Greatly, if you have any business friends or colleagues that you think would benefit from listening to this episode to please do feel free to share screenshot, share the link, share my page, whatever works for you. I would be so grateful because together that's how we get the podcast into the years of even more business owners.
[00:13:38] Tracey: Thanks for your time. I'll catch you next week.
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