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How To Secure Your Business
By: Obinna Heche
For many people, especially those new to business, asking for money upfront from clientele or patrons is a questionable, even downright nerve wracking prospect. Will the other party perceive a lack of trust on the initiators part? Is such an action illegal?
The reality is, however, such a practice is conducted by many institutions and contractors, so it is not out of line. As a matter of fact, such a policy as requesting a certain percentage of payment before work begins is required in many cases to ensure the security of those providing a service and it is totally ethical and professional.
This can be seen in the case of the apartment manager who insists on deposit before prospects move in. Some even require first and last months rent paid in advance as well. The reason for this is so if damage is incurred during a particular tenants stay or if the said tenant disappears before the termination of the contract, the manager is compensated for whatever loss is accrued and sustained.
Another example refers to the business relationship between clients and contractors, such as freelancers. Those getting paid for service quite frequently request a percentage of payment, such as 25 or 50 percent before work begins or they too might ask for a deposit in addition to percentage. Service providers practice this policy to ensure some degree of compensation should the client pull out before the transaction is complete or turn out to be untrustworthy or conduct unethical practices.
As for this last circumstance, many entrepreneurs are scrupulous and intend on getting something for nothing or very little. With these individuals, making and saving money takes priority over behaving ethically and equitably with aforementioned service providers. This is a scary and depressing notion but such things do in fact happen. Acquiring compensation or part of it, in advance offers some sense of security for those who might otherwise be stiffed.
As for the two examples above, along with many others, asking for payment ahead of time shows other professionals that one is on top of the game and initiating self protection, which is professionally sound and responsible. Others who have been involved in business know the necessity for this. Some who might take offense are either inexperienced or pose questionable character and therefore should be distanced or avoided at all costs.
Yes, certain people operate covertly and are difficult to detect early on. This is why incorporating such security measures into ones business policy is an important move whether blood suckers are lurking about or not, the business is safe. In the end, protecting oneself ensures a greater sense of survival in the business world over scrupulous behavior.
It makes no sense to treat people unfairly and expect the business to grow, especially when mistreated customers will go elsewhere or even press charges for illegal practices incurred against them. Unsavory reputations will destroy a business quicker than anything else. Others must have their eyes open to this at all times.
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