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.