Q: What’s the biggest mistake you see small businesses make before a project begins?
ACE advises: “We can work out the details later.” Almost every business owner has said it. Sometimes there is no choice. Most of the time, nothing goes wrong. But when it does, those seven words can become the most expensive sentence in business.
The issue is not trust. It is postponing agreement on the details. Disputes often begin with two honest people who remember the same conversation differently or whose circumstances have changed.
Projects grow. Deadlines move. Additional work is requested. What one party considers part of the original agreement, the other views as extra work. Neither is unreasonable.
This is not just advice for new customers. Long-standing business relationships present their own risk. “The way we’ve always done it” becomes less reliable as businesses evolve. Ownership changes, staff changes, customers change and projects become more complex. Agreements should evolve as well.
A written agreement is not preparation for litigation. It is an opportunity to have the difficult conversation while everyone is still working toward the same goal. If a relationship matters — to your revenue, your reputation, or your peace of mind — it deserves enough clarity that both parties would describe the agreement the same way six months later.
It’s all in e-mail. Emails can create enforceable agreements. I once reconstructed a construction contract from letters, notes, a sketch on a cocktail napkin and a bar bill. Emails answer questions one at a time; they rarely organize all of the important terms in one place.
Before work begins, gather the key terms into a single document. AI can help organize emails and notes into a draft term sheet, but it should always be reviewed, corrected, and completed by the parties before being shared “pending final contract.”
Takeaway: Fifteen minutes spent confirming expectations in writing today may be the highest-return investment your business makes all year.
