The Importance of Terms of Business

Amanda Keetley
Credit Control_Contracts_TOBs

1 QUESTION FOR YOU

Are the terms of business (TOB) with your clients current and reflective of the context of the relationship?

2 QUOTES FROM OTHERS

  • Steve Vamos (CEO, Xero)
    “It wasn’t innovation that saved Apple, it was the courage of the CEO to stop doing 75% of what the company was doing to get focussed on one thing.”
  • Donny Ching (Legal Director – Shell)
    “In house lawyers and finance professionals are your business partners.”

3 IDEAS FROM ME

  • Practical detailed negotiation is required for determining the terms of business. Lack of detail around any costs, particularly casual labour rates and indirect employment costs, will crush your margin.
  • On Accountability: Not reviewing your multi-year contracts increases the risk of going back to the client seeking costs when terms rollover at year-end, reflecting poorly on you in the eyes of the client. In our experience, recruitment businesses do not audit their contracts well.
  • On Commerciality: The Financial Controller, the Legal Officer and the Recruitment Consultant should be working together on the client TOB. Once terms are set that should be adhered to.

About 888X:

888X provides business advisory services focussed on productivity and growth to accelerate your business profit and resilience.

888X takes an innovative, agile and positive approach to business transformation and improvement. We are focussed on, and committed to, our client’s business success. Our expert business advice is delivered with optimism and encouragement. 888X embraces efficient, digital tools that reduce costs and increase revenue.