Enterprise Nation

Responding to a question from an Enterprise Nation member, Sue McGaughran of online legal service Lime One, tells us about terms and conditions and why they’re good for our home based business.

What are terms and conditions?

Terms and conditions allow a business to set out some “rules” on which they will do business with their clients and customers, whether it be supplying goods and/or providing services.

Why have terms and conditions?

There are many reasons why terms and conditions are vital – here are just a few:

• To Set out the basis upon which you will supply and/or work for your clients and customers - you can specify how long the customer can have to pay you, your delivery policy, your returns policy, exactly what your services will cover (and what they won’t). Without terms you can be left arguing petty and time consuming issues with your customers.
• Work within the law - English law imposes duties on businesses so avoid penalties by laying the law down within your terms. This way everyone knows where they stand. If you are selling goods and/or services from a website then you may have to comply with the Distance Selling Regulations. These regs include cancellation rights on orders. If the seller has not advised the customer about their cancellation rights, this can mean that the customer’s usual 7 day rights can been extended to 3 months. This is a situation you’ll want to avoid. 
• Protect your business - if things go wrong, both you and your clients and customer will understand your position (for example if customers default on payment) and your liability more easily.
• Move your business forward - other businesses that you work with require your terms and conditions-it’s more professional. When you are setting up facilities with your bank to accept credit card payments the bank will insist on seeing your terms and conditions before they can provide that facility to you.
• Create a professional image - presenting your terms and conditions at the outset makes your business look and be efficient.

So, the short answer is?

Yes! - Terms and conditions are essential to every business from the start. Often when setting up a business terms and conditions are overlooked, they should be the first thing you consider to take away potential headaches.

• Sue McGaughran, Lime One

With Lime One terms and conditions start from just £40 plus VAT. A small cost to ensure your business knows and plays by the rules.

Other features from Lime One:

• Do the Distance Selling Regulations apply to my business?
• Online protection