Building Your IT Company

IT professionals are inspired to build their own business, often not knowing enough about running a company, small or large.

In addition to registering a firm and hiring an accountant, there are some essential good practices when serving a client. No matter how great relationships and intentions are, the essential paperwork with all clients is priceless in avoiding the misunderstandings and protecting the parties' interests.

Contracts with a client

At the beginning you must have a contract. Depending on a nature of the work and the relationship, you should choose if you are providing your services by hour, or developing a solution. Choose the right type of agreement e.g. service agreement, software development agreement, letter of engagement, or others as applicable.

It is important to use the right format and cover all important sections around scope of work, timeline, deliverables, price and fees, any support services and other important aspects of delivering a successful work. Even though no contract can protect from eventualities, having a written agreement will always lead to better and happier relationships with clients.

Don't forget to highlight who owns the intellectual property rights of the work.

Non-disclosure agreements

Always have a confidentiality or non-disclosure agreement (NDA) in place. This is to protect you and your client from disclosure or potential loss of intellectual property.

When delivering the work

As you progress in delivery the work and something gets clarified and change it is important to record and sign off such changes. Very good mechanisms for managing progress, among others, are deliverable sign offs, status reports, acceptance protocols, and change requests. The key is to involve the clients throughout the entire progress, ensuring their commitment to progress and securing sign offs. It is integral part, rather than not so rare that's not what I wanted' argument.

When managing budgets and billing

Every time contracted work is delivered, it is important to have a report and sign off to support it. Sooner or later a new question or bug will appear, and it is important to know if this is part of old work or new work and thus new budget.

It is highly recommended to send invoices on time and have them agreed to with formal sign off. Usually, the invoices get paid a few weeks or even months later. With that in mind, it is common that invoices are questioned, disputed or that more work gets requested without any further compensation. Do not fall into this trap, have invoices approved.

Building your IT firm is full of excitement and challenges.

Join many more professionals, in using #CARLAVIA to manage contracts, scope of work and invoice approvals. It has all the tools to manage the client work in a very fast and painless way.

Follow us on LinkedIn and Facebook.