174- Work-for-hire challenges for the Entrepreneur

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In this episode of The Struggling Biz show, we deliver some personal experiences and the challenges for an entrepreneur who focuses revenue with solutions that are “work-for-hire” with clients that have contracts or relationships that stress the delivery of solutions.

I have a personal history to relate so that new or aspiring entrepreneurs can be aware of the attraction to work-for-hire situations, due to some negative possibilities.

For myself as an entrepreneur, I had a contract with a client that seemed good. I had a good time-management system that allowed me to manage my projects very professionally and thoroughly, the project albatross around my neck was the fact that the client was a personal friend and business associate of mine. That should have given me a warning sign.

The project started back in 2011, and the business contract and billing for services started in 2013 and 2014. And today, it still continues, even though the client had managed to postpone and reschedule much of the actual work on the project even to this day.

Now, does this mean that I have not been compensated?

Quite the contrary.

Since it was now a primary business relationship, each of my invoices sent to the client for work done has been respectfully paid.

However, the changes and re-starting of work on the project has been going on for over 8 years. This was not acceptable, in spite of the fact that my other client has terminated the project a few years ago.

There is a lesson that I learned from this:

the good: great project, good client (except for his project management and time management systems) and invoices paid on time;
the bad: the rescheduling and the changing of priorities and additions to the project have extended the termination of the project (which is still going on) — in fact, this project appears to be in line with the saying from marketer Charlie “Tremendous” Jones on the project-to-perfection model, which required one more little “tweak” until the project never ended and the product was never completed;
the ugly: Now, I am stuck with a personal relationship with the client and I am on “hold” and not able to accept any work from any other client or project, until this one is completed;
the negative “benefit” — Entering into this type of contract and work for hire did, indeed, compromise my business opportunity and other clients, as well as my own piece-of-mind that caused frustration and unnecessary stress;
the result: I am considering terminating my business due to this prolonged nightmare, and I am being forced to retire, as a result of waiting for the “product to perfection” to finally end.

So what can be done about this?

I have 2 suggestions:

(1) I suggest that a work-for-hire contract specify a deadline for the end of the project, regardless of the state of the work unless there is another addendum to the contract that specifies when the end date will be and the terms and conditions for putting a stop to my end of the project, due to extensions, reschedules and terminations, etc — and more important, the terms to specify the EXECUTION of the actions to terminate the project; and

(2) Avoid the personal relationship with the client in the future at all costs. I know this may be impossible, as many of our work-for-hire contracts spring up from these types of relationships. But avoid having these entanglements which can end in the ruin of the relationship and a loss of potential revenue and profit for yourself as the entrepreneur.

So, as an entrepreneur, it is easy to go for the low-hanging fruit of a good contract for great services to someone as a client who is also a friend. But please be advised of the negative situations that may result to your business, as well as to your personal relationships.

Because of this, I am only taking on contracts with potential customers from the stage of being a prospect (and not even just a suspect for business) and setting time-limits for the entire work-for-hire and its termination. And I am being extremely firm and serious about that — especially by avoiding personal relationships and referrals from personal relationships.

I suggest that you prepare yourself as a provider of services-for-hire in every form — legally, mentally, and professionally by insisting on strict time-management tools and results instead of letting the project get into a “scope-creep” situation.

I wish you the best in getting your Business Development system in order and monitoring and managing your customers and prospects (and, yes, even suspects) in a clear way to avoid these types of negative unnecessary stress situations for your business in the future.

Thank you for your attention. We’ll see you next time.