Crafting Confidence: Why creatives, coaches, and entrepreneurs need contracts

Hi there, dreamers & dynamos,

Welcome to contracts 101.

Picture this: You're a visionary, brimming with creativity and determination, forging your path in the digital realm. You’ve built a website or course, mastered social media marketing, and are generally getting-it-done. As you breathe life into your dreams and establish your online empire, there's one vital tool that maybe you have overlooked (and who could blame you, it’s not exactly sexy) but that deserves a spotlight on your journey: contracts.

Yes, contracts, those seemingly mundane documents hold the key to your entrepreneurial success, providing you with the legal fortress you need to confidently build your business. In this post, we'll explore why contracts are the secret sauce for female digital entrepreneurs like you, empowering you to establish a strong legal foundation and soar to new heights.

If you’re here, you probably have a sneaking suspicion that contracts are important to your business. But maybe you’ve been crossing your fingers every time you send one out? Or you’ve been using one that you bought from Etsy and you’re just not sure if it really has you covered? Or have you been stung one too many times by a client who doesn’t cooperate? No matter what your history with contracts is, we can get you squared away STAT.

The recipe for contracts.

• Yes, you must read them, even if you think you know what is says. Never sign anything without reading it carefully.

• Use your legal name and sign on behalf of your business if you have an LLC. A e-signature clause is a smart idea too.

• Clearly numbering and labeling each clause makes it easy to reference them and draw them to your client’s attention. Bonus: pull out key clauses and include them in the email that you attach the contract to.

• Highlight the most important clauses (payment, cancellations, etc) by putting them right near the top. Your client will probably skim the rest.

• Great contracts will include legal provisions to protect you in worst case scenarios. Consider: dispute resolution, governing law, and severability, just to name a few.

Contracts are your trusty navigational compass in the often intricate world of business. They bring clarity to your collaborations, setting the stage with clear expectations and well-defined roles. In the online landscape, where remote collaborations and partnerships are commonplace, having a contract spells out the terms of engagement, leaving no room for misunderstandings. Whether you're working with clients, designers, or developers, contracts empower you to say, "This is what we're agreeing to," fostering an environment of mutual respect and understanding.

For you, creativity is oxygen. You pour your heart and soul into your digital creations, from dazzling designs to innovative courses. Contracts safeguard your intellectual property, ensuring that your creative brainchildren remain exclusively yours. When a client engages your services, your contract can stipulate the scope of use, preventing unauthorized distribution or replication. This protection is your insurance against copycats and unintended usage, allowing you to focus on what you do best – creating. Whether you create content for your own business (and you do, right?) or if creating content is part of a service you provide to others, you must have a clear intellectual property ownership clause in your contract. Typically, you’re going to want to reserve all intellectual property rights for your business but in some cases, like Work for Hire, you might be agreeing to assign or transfer some or all of your rights to your clients. Whatever option you choose, you need a well-written (drafted by an Ivy League attorney, perhaps? Check my template shop!) contract to protect your rights and future earnings!

Intellectual property rights can seem abstract but know what’s easy to understand? Cold, hard cash. Ah, money – the fuel for your entrepreneurial engine. Contracts aren't just about legalese; they're your financial guardians. When working with clients or collaborators, your contract should outline payment terms, deadlines, and deliverables. This means you don't have to chase down payments or deal with awkward conversations about compensation. Contracts provide you with the financial structure you need to confidently charge what you're worth and ensure your income flows smoothly. It also gives you clear procedures if a client misses a payment or cancels. I know talking about money can seem like bad form (my etiquette teacher is shuddering at this whole paragraph) but a thoughtful contract sets all financial terms out clearly at the beginning of your relationship and this can actually de-escalate future conversation because everything is already agreed on.

As a creative, coach, or online entrepreneur, you're all about making connections and delivering exceptional value. Your clients love you and it’s well deserved. But, contracts are your secret weapon for managing client expectations. Outline project timelines, revisions, and communication methods in your contract to avoid scope creep (it even sounds nefarious, doesn’t it?!) and project derailment. This way, everyone's on the same page, and you avoid those late-night "surprise" requests that can throw off your work-life balance. Or at a minimum lock up “rush work” or “after hours” fee terms, so that you can get paid for the work you do.

No matter how professional you are, or how much of a dreamboat your client is, in business, the unexpected can happen. Clients might change their minds, collaborations might dissolve, or projects might need to be put on hold and let’s not even get started on the impact of global pandemics. Contracts cover these scenarios (yep, even the pandemics!). Including clauses that outline cancellation policies, termination terms, rescheduling procedures, non-disparagement clauses, and confidentiality agreements arms you with the tools to handle any curveballs that come your way. This gives you peace of mind, knowing you're prepared even for the unpredictable. One note here, is that these types of clauses will be reviewed carefully if the worst should happen and you end up in court. You need to make sure that they are written properly and use the appropriate legal terms to ensure that they are enforceable when you most need them.

Running an online business doesn't mean you're any less professional than a brick-and-mortar establishment. In fact, your digital presence showcases your innovation and adaptability. Contracts amplify this professionalism. When you present a solid contract to clients or partners, you're showing that you take your business seriously and are committed to transparency and accountability. This elevated professionalism builds trust and sets you apart in the crowded digital landscape. Remember, you only have one chance to make a first impression (thanks, mom!) so be sure to have professional contracts in place from the word “go.”

In a world where your digital presence speaks volumes, contracts are your silent partners, speaking on your behalf and safeguarding your endeavors. They're not just pieces of paper; they're the backbone of your entrepreneurial venture. As an entrepreneur with a unique vision, don't underestimate the power of contracts. They're your key to confidently building your business on a solid legal foundation, empowering you to focus on what you do best: crafting your digital empire with passion, creativity, and unwavering confidence. So, go ahead – embrace the magic of contracts and watch your dreams thrive.

Contracts 101 Final Thoughts & Key Takeaways

• You definitely NEED contracts in your business

• Well-written contracts are worth their weight in gold

• Make sure your contracts anticipate issues and include legal language for resolving issues

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THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.