Hello Genius, welcome back to another episode of the Own Your Genius podcast—the space where we encourage you to use your education and experiences to create dope businesses. I’m your host, Brand Attorney LaConya Murray, owner of Off the Mark IP Solutions and founder of MARKEDlegal.
Let’s get real for a minute. Making the shift from the stability of a corporate role to the wild ride of entrepreneurship is no small feat. You’re bringing years of education and experience to the table, but stepping out on your own means there’s no safety net—and every detail matters. One thing that can make or break your business? Your client agreements.
If you’re transitioning from corporate life, you already recognize how crucial a well-written contract is. These documents aren’t just paperwork; they’re the foundation for every relationship you build—and when things go sideways, your agreement is what keeps you protected.
I’ve seen brilliant professionals pour themselves into their businesses, only to run into trouble because their contracts were missing the essentials. Maybe it’s a designer whose client keeps requesting endless revisions. Or a consultant left chasing down late payments. Sound familiar? If you’re nodding along, this conversation is for you.
Scope of Work: Defining Boundaries
First up is the scope of work. This section spells out exactly what you’re delivering—and just as importantly, what you’re not. Don’t leave room for assumptions. If you’re a web designer, are you creating three pages or ten? If you’re a consultant, does your package include follow-up calls? Be specific: break down tasks, deliverables, and any limitations on revisions or support. Clearly outline what’s included, what’s extra, and how requests for additional work will be handled and billed.
A well-crafted scope of work helps avoid misunderstandings, protects your time, and sets clear boundaries for both you and your client. It also provides a reference point if questions arise later, giving you a solid foundation to manage expectations and resolve potential disputes. Taking the time to detail your scope up front can save countless headaches down the road and keeps your client relationship positive and professional.
Payment Terms: Ensuring Clarity
Next, let’s talk money—because you deserve to be paid for your expertise. Payment terms should be crystal clear: how much is due, when it’s due, and what happens if payment is late. Are you collecting a deposit up front? Is full payment required before delivery? Spell it out. When you’re clear on the numbers, you protect your business and keep your cash flow healthy.
- Accepted Payment Methods: Specify how clients can pay you—whether by credit card, bank transfer, check, or digital platforms like PayPal or Stripe. Outlining this upfront avoids confusion and delays.
- Late Payment Policies: Detail any late fees, interest charges, or service interruptions that apply if payments aren’t made on time. This encourages timely payment and provides recourse if there are delays.
- Invoicing Schedule: Clarify when and how invoices will be sent—such as upon completion of milestones, on a set date each month, or after final delivery. Consistent invoicing helps both parties manage expectations and finances.
- Refund and Cancellation Terms: Explain whether deposits are refundable, under what circumstances refunds are issued, and how cancellations are handled. This can prevent disputes if a project ends early or expectations change.
- Dispute Resolution Process: Include steps for resolving payment disputes, such as mediation or arbitration, to ensure there’s a clear path if disagreements arise.
- Currency and Taxes: For international clients, specify the currency for payment and who is responsible for any applicable taxes, fees, or conversion costs.
- Retainer and Recurring Payments: If you work on retainer or offer ongoing services, clarify renewal dates, auto-billing procedures, and notice requirements for ending the agreement.
By addressing these considerations in your agreements, you ensure smoother transactions, minimize misunderstandings, and make it easier to get paid for the value you provide.
Delivery Timelines: Setting Expectations
If you’ve ever stressed over deadlines, you know how important delivery timelines are. Your agreement should specify when you’ll deliver the final product, and what happens if there are delays—on either side. Maybe you need feedback from your client before moving forward. Make sure your timeline allows for both your workflow and theirs, so everyone knows what to expect. Just as you commit to delivering your work on schedule, your contract can also hold the client accountable for providing timely feedback or materials needed to keep the project on track. If the client delays in giving necessary input, your agreement should outline how this impacts the delivery timeline—such as pausing the schedule until feedback is received or adjusting deadlines accordingly. Setting these mutual responsibilities ensures that both parties are clear on their roles and helps prevent frustration if the project stalls due to delayed responses.
What If Expectations Aren’t Met?
Let’s be honest: sometimes things don’t go as planned. Maybe a client isn’t happy with the first draft, or a payment gets missed. Your contract should lay out remedies—how will you fix issues, and what steps will be taken? Can you offer revisions? Is there a refund policy? Clear communication here shows professionalism and protects your relationships, even when things get tough.
Ownership of Final Product: Intellectual Property
Ownership is a biggie, especially for creatives and consultants. Who owns the final product—the client or you? Make sure your agreement spells it out. If you’re handing over full rights, say so. If you’re retaining ownership and granting your client a license to use your work, clarify that too. This prevents future disputes and ensures everyone’s on the same page.
But what if your work is built upon your own intellectual property—like templates, frameworks, or proprietary methods—and your client requests ownership of the final deliverable? This is a common scenario for consultants and creatives who leverage their unique expertise across multiple projects. It’s important to distinguish between your pre-existing intellectual property (“background IP”) and the specific work created for the client (“deliverables”).
If the client wants ownership of the final product but your underlying IP is involved, consider these options in your agreement:
- License Instead of Transfer: Grant the client a broad license to use the final deliverable, while you retain ownership of your underlying IP. This allows the client to use the work as needed without transferring your core assets.
- Carve-Outs in Ownership Transfer: If you agree to transfer ownership, clearly carve out your pre-existing IP. State that only the custom elements created for the client are being assigned, and you retain rights to your proprietary tools or methods.
- Additional Fees for Full Ownership: If the client insists on owning everything—including your underlying IP—consider negotiating a higher fee, since you’re giving up the right to reuse those assets in future projects.
- Define Permitted Uses: Spell out how the client can use the deliverable and what restrictions apply, especially if your IP could be valuable in other contexts.
Always make these terms explicit in your contract. This way, you protect your business’s core assets while meeting your client’s needs—and you avoid misunderstandings down the road.
Recap and Action Steps
Your client agreement isn’t just legal protection; it’s a roadmap for a successful working relationship. Define your scope of work, set clear payment terms, establish delivery timelines, have a plan for unmet expectations, and clarify ownership of deliverables. Take time to review your contracts—don’t leave anything to chance.
If you’re transitioning from corporate life, remember: your knowledge and experience are powerful, but your client agreements are what keep your business secure and thriving.
Thank you for tuning in to the Own Your Genius Podcast! If today’s episode sparked some ideas or questions, I’d love to hear from you; make sure to leave a review or a comment. If you found this episode helpful, share it with a fellow entrepreneur and subscribe for more practical, legal wisdom.
Until next time, keep building your business, growing your brand, and owning your genius!
