Transaction is a business term that could mean different things – depending on what it is being used for/as. This article will focus on transaction that involves business agreement or rendering of services, as entrepreneurs.
An entrepreneur is a person who believes in a venture (whether people see or do not see anything good in that same venture) and takes a decisive action to try his/her skills for breakthrough – bearing the risks to fail.
A business is an organisation or enterprise that has the capacity to render services, sell products, make profits and enlarge (as required) – under a reasonable managerial leadership.
At this point, it should be stated that business transaction can occur between an entrepreneur (a business owner) and some relations: it could be between the business owner and some individuals that he/she respects so much; transaction could be between business owners and (entirely) new clients – that could lead to a robust clientele.
However, some things must be noted when (as a business or business owner) you are entering into any ‘business transaction’ with whomever.
What to note at initial stage of every business transaction
By default, every would be client will always present needs of services in a way that will be profitable (to him/her) – in terms of price reduction and rendering of qualitative services.
In view of this, when you will be presenting your services (to be rendered) you must not agree to any price that will be disadvantageous to your business: you, however, need to ensure modesty in your charges. Your charges must be competitive and at the same time, affordable.
Whoever needs your service but will not agree to pay your meager charges should not be considered based on emotions. It is better to work out of such transaction than to accept it and not be able to offer quality services.
In the word of Hencry Cloud:
When we fail to end things well, we are destined to repeat the mistakes that keep us from moving on. We choose the same kind of dysfunctional people or demoralising job again. Not learning our lessons and proactively dealing with them, we make the same business or personal mistakes over and over. Learning how to do an ending well and how to metabolise the experience allows us to move beyond patterns of behavior that may have tripped us up in the past. We do not have to keep repeating the same patterns.
You do not allow any peasant offer to lock you up (for years), this is because once you agree to render a service at any lowest cost – the client has the advantage(s) to hold you accountable (provided you cannot complete the job due to lack of funds).
As a matter of fact, most people are crook (please mind that word – not all persons are crook) – looking for any avenue to entangle you into rendering high cost services at your disadvantages to their own advantages.
Another thing is for you to be able to define your terms of engagement. You will realise that (if your engagement is not defined) many people will start to demand for more services that their charges cannot afford.
To avoid this trap, you have to define your terms of service. List the things that you will do for the person, business or organisation – based on the charges you are giving, and then, ensure that you both have copies of the listed services to be rendered (perhaps, with attestations too).
While the services are ongoing
This is another important stage of any business transaction. It can determine whether you will complete the services you have started or not: it could determine if the business you are rendering service(s) to would form part of your clientele or not.
Some people can introduce additional service(s) that are not part of your initial agreement. You must be able to review your charges if it would complete the project or not.
Once you realise an imbalance in the initial charges, it will be your interest to increase charges. You must not, however, advice your client to drop the add-on services. Rather, advice the client on how to implement them.
While the services are ongoing, you must show to the client that you value his/her opinions, and it is your right to reject mediocrity suggestions (from client) – bearing in mind your business reputations.
Conclusion of the whole matter
It is advisable that you send and receive letters of acceptance – detailing your terms of service, including charges on any business transaction that you embark on.
This will avoid a situation in which a client will start to harass you on the claim that you do not render the services for which he/she has paid you.
As you widen your client base, there is (also) the need to widen your knowledge about business environment. Learning these things will give you leverage, either now or later.
 Henry, Cloud, Necessary Endings: The Employees, Businesses, and Relationships that all of us have to give up in order to move forward, Pgs 18-19.