Transaction is a business term that
could mean different things – depending on what it is being used for/as. This
article will focus on transaction that involves business agreement or rendering
of services, as entrepreneurs.
An entrepreneur is a person who
believes in a venture (whether people see or do not see anything good in that
same venture) and takes a decisive action to try his/her skills for
breakthrough – bearing the risks to fail.
A business is an organisation or
enterprise that has the capacity to render services, sell products, make
profits and enlarge (as required) – under a reasonable managerial leadership.
At this point, it should be stated
that business transaction can occur between an entrepreneur (a business owner)
and some relations: it could be between the business owner and some individuals
that he/she respects so much; transaction could be between business owners and
(entirely) new clients – that could lead to a robust clientele.
However, some things must be noted
when (as a business or business owner) you are entering into any ‘business
transaction’ with whomever.
What
to note at initial stage of every business transaction
By default, every would be client
will always present needs of services in a way that will be profitable (to
him/her) – in terms of price reduction and rendering of qualitative services.
In view of this, when you will be
presenting your services (to be rendered) you must not agree to any price that
will be disadvantageous to your business: you, however, need to ensure modesty
in your charges. Your charges must be competitive and at the same time,
affordable.
Whoever needs your service but will
not agree to pay your meager charges should not be considered based on
emotions. It is better to work out of such transaction than to accept it and
not be able to offer quality services.
In the word of Hencry Cloud:
When we fail to end
things well, we are destined to repeat the mistakes that keep us from moving
on. We choose the same kind of dysfunctional people or demoralising job again. Not
learning our lessons and proactively dealing with them, we make the same
business or personal mistakes over and over. Learning how to do an ending well
and how to metabolise the experience allows us to move beyond patterns of
behavior that may have tripped us up in the past. We do not have to keep
repeating the same patterns.[1]
You do not allow any peasant offer
to lock you up (for years), this is because once you agree to render a service
at any lowest cost – the client has the advantage(s) to hold you accountable
(provided you cannot complete the job due to lack of funds).
As a matter of fact, most people are
crook (please mind that word – not all persons are crook) – looking for any
avenue to entangle you into rendering high cost services at your disadvantages
to their own advantages.
Another thing is for you to be able
to define your terms of engagement. You will realise that (if your engagement
is not defined) many people will start to demand for more services that their
charges cannot afford.
To avoid this trap, you have to
define your terms of service. List the things that you will do for the person,
business or organisation – based on the charges you are giving, and then,
ensure that you both have copies of the listed services to be rendered
(perhaps, with attestations too).
While
the services are ongoing
This is another important stage of
any business transaction. It can determine whether you will complete the
services you have started or not: it could determine if the business you are
rendering service(s) to would form part of your clientele or not.
Some people can introduce additional
service(s) that are not part of your initial agreement. You must be able to
review your charges if it would complete the project or not.
Once you realise an imbalance in the
initial charges, it will be your interest to increase charges. You must not,
however, advice your client to drop the add-on services. Rather, advice the
client on how to implement them.
While the services are ongoing, you
must show to the client that you value his/her opinions, and it is your right
to reject mediocrity suggestions (from client) – bearing in mind your business
reputations.
Conclusion
of the whole matter
It is advisable that you send and
receive letters of acceptance – detailing your terms of service, including
charges on any business transaction that you embark on.
This will avoid a situation in which
a client will start to harass you on the claim that you do not render the
services for which he/she has paid you.
As you widen your client base, there
is (also) the need to widen your knowledge about business environment. Learning
these things will give you leverage, either now or later.
[1]
Henry, Cloud, Necessary Endings: The Employees, Businesses, and
Relationships that all of us have to give up in order to move forward, Pgs
18-19.
