2/n
I'm just a dude who now offers contracted services to orgs with procurement teams and in-house counsel. One of those services is auditing their Procurement & Onboarding processes they used to hire me, and you. 4/n
ya no. not this time, Mr. or Ms. Small Privately-Owned Business Owner. Here's why that's a trap.
6/n
1) Client contact
2) Service provider
3) Procurement
4) Finance
5) Legal
I used to be the client, now I'm a svc provider (#2). If you're an indy consultant or small business serving clients, you're #2. 7/
#1 says "I need a thing".
- PROCESS INITIATED -
#2 says "We do that!" & sends a proposal.
#1 says "I want that!" and decides to hire #2.
With small businesses or very simple deals, that may be all there is to it. Client signs, off you go.
8/
But all you hear is "LETS LOWER UR MARGIN THANKS TO REDLINES"
Procurement is responsible for setting you up as a vendor. They check your W9, D&B/credit report, and get you entered as a payee. 10/
That Procurement rep may also talk to you... 11/
If you're nice to them, they'll probably tell you up front what terms and conditions (T&Cs) their company likes and doesn't like - this can save you much time & legal counsel $$, so ask nicely, be kind, and pay a bloody ttention.
12/
Now, if Procurement doesn't like something - your pricing, your BBB/D&B or credit rating, or terms in your proposal - they'll tell your client what their concern is. Depending on your biz,
/14
Then it's up to your client to decide if the problem is really a problem, & how much they want to work with you to fix it vs just finding another provider. /15
Legal's looking at things differently than Procurement. And they like redlines.
/16
Figure 214: Chief Counsel in charge of Your Pending Contract.
1) How can this damage us
2) How can we limit that damage
3) How can we cancel everything at will
4) How can we own everything
1, 2, & 3 are their role in managing risk. 4 is just how they roll.
/17
but as they read your contract they're asking "How can I keep this from becoming a cratering hole in the ground if YOU (Service Provider) screw up?"
/18
/19
they ALL say.
This part of the process, Your Client is trying to limit their damages in the event you: get hacked, go out of business, leave their $billions of IP in an airport, ... /20
/21
1) you don't have an army of high-cost lawyers at your disposal
2) because of #1, they can push for very them-favorable terms
3) if something goes wrong, they can blame you.
/22
1) make sure you aren't being saddled with burdensome requirements
2) make sure you have legal protection or liability & damage control
BUT WAIT, YOU CRAFTY BASTARD. YOU DID AN END RUN! YOU ACCEPTED PAYMENT IN LIEU OF SIGNATURE & STARTED WORK!
/23
HERES WHY THAT END-RUN PUTS YOU, MR/MS SMALL BUSINESS OWNER-OPERATOR, AT A SIGNIFICANT DISADVANTAGE.
Did your contract, proposal, or SOW specify terms?
/24
/25
Internally, unless that client who Cut a Check In Lieu Of Payment is the CEO or Chief Counsel, they just sidestepped a LOT of processes businesses use to protect against fraud, self dealing, and embezzlement. /27
mlive.com/news/grand-rap…
BUT, if they have Legal's or another auth'd OK... /30
For a small business owner-operator, what appears to be a short-cut to getting to Ye$ can leave you up a creek in a dispute, or if a disaster happens like a breach or hack via your systems. Be prepared.
/31
healthleadersmedia.com/atrium-health-…
Deliverables & schedule
Your responsibilities to safeguard their data & IP
Your liability & damage limits
Contract change management
Dispute resolution
Deliverables acceptance & Payment schedule
Will cover most bases, but get a lawyer!
/32
/33
P for Business Processes
S for the Scotch required to reach 34 tweets
and A for ALL THAT BIZNESS YOU'RE GONNA GET
Now go be awesome and land them dealz, Mr & Ms. Independent Business Owner.