During my spare time I volunteer as a small business coach . One of the biggest headache for small businesses and start-up companies is the constant delay of business projects. Complaints from small business owners about their websites, marketing plans, and promotional materials not being done on time are common.
Perhaps as a result of the lack of resources, financial or otherwise, many owners facing project delays depend on the help from family and friends, who may receive little or no compensation.
When the projects then aren’t done on time, they often feel awkward in demanding that something be done about it. Unfortunately, when pillar projects, such as setting up a website or writing up promotional materials, come to a halt, businesses often falter quickly.
If you’re in this type of situation, I’d suggest that you do two things.
First, you should offer to pay your friendly “contractors” fair market compensation for the job. This works on two levels.
On the practical level, friends or not, no one likes to work for free. By offering financial compensation, you provide an incentive to your contractors to finish the work on time (so they can get paid).
On the legal plane, your contractors are not under any obligation to perform the tasks unless they are receiving compensation. By paying them, you’re holding them accountable in law.
Second, you should lay out your expectations, including the deadlines, to your contractors whether the work has started or not. This will facilitate communication and help instill a sense of formality and seriousness into the project.
Legally speaking, having defined the terms of your projects is almost always preferable to not having done so. If it becomes clear that your expectations are very different from those of your contractors, you should try get out of the deal before it’s too late.
Of course, various factors will dictate whether you can get out of a deal without reprocussions. If the project involves a significant amount of money, you should consult a lawyer before you announce your intention to back out.
I can be reached at 416-433-5531.
