Boundaries in business are akin to invisible fences
that protect your time, your energy, and your sanity.
Boundaries allow you to operate in a way which works for you, which in turn allows you to best serve your clients and customers. In this blog, I’m going to cover why boundaries are important, provide some examples of boundaries which you might consider setting and how to go about that.
Why Boundaries are Important
Boundaries help you maintain a healthy work/business/life balance and increase productivity. Boundaries are a sign to yourself (and others) of self-respect. They allow you to operate in a way which works effectively for you, whilst maintaining your sanity. Boundaries help entrepreneurs, managers and workers to attain a happier and healthier workplace. When you don’t have boundaries, you tend to go far beyond reasonable expectations and often experience burnout. Alternatively, in order to avoid burnout, staff will resign, or business owners become despondent and lack motivation and passion within their businesses, feeling it’s a noose around their necks.
Some Examples of Boundaries That Are Common Issues & Solutions
- Ever provided a quote to a customer, done the job and then before the customer pays your invoice, they then try to negotiate a discount? I’ve seen it happen to clients and not because the job wasn’t done well, purely because they know you want to be paid and they figure they could try it on.
PROPOSED SOLUTION: Have a clear and defined agreement or T&Cs that once the price is accepted and the work is started – they are obliged to pay the bill in full and on time. Also, you need to hold your ground and not falter; if the job was done well and to specification, then you deserve to be paid.
- Similar to the above, but no-where near as bad. You provide a quote, and the prospective customer declares it’s too expensive and asks you to shave something off that quote in order to gain their business. It’s a price negotiation, which is ok, but you need to handle it appropriately.
PROPOSED SOLUTION: Negotiation is part of the course of doing business; there is nothing wrong with it, but value your worth and that of your products and services. It may be they cannot afford the full offering, so you may suggest another option which is cheaper. Let’s say you’re a landscaper, and you’ve quoted a concrete side area; if that’s out of cost, then a gravel option will save the homeowner dollars, without you having to forfeit your income or profit. You’re in business; you deserve to make an income and a fair profit.
- Bookkeepers and accountants often have the problem of a looming deadline, reminding their clients that the deadline is fast coming and are ignored. Required paperwork or information is then provided in the ‘11th hour’ with an expectation that their work will be completed on time.
PROPOSED SOLUTION: Firstly, your client agreement may state that by being your client, they agree to provide information and paperwork in a timely manner. Also, when requesting data, remind them that although you’d like them to feel they are your only client, you have many others; work will be done in order of receipt of information and accordingly if it’s not provided by xxx date, then you cannot assure the work will be completed on time. It’s not fair to expect you or your team to burn the midnight oil because information wasn’t provided when it should have been. With BAS and tax deadlines, there are no surprises; it’s always the same dates month/quarter/year again and again.
- Customers or clients ring you late at night, or on weekends, because it suits them, or expect that you’ll have a meeting with them on a Sunday afternoon, because again, it suits them better.
PROPOSED SOLUTION: There is a fabulous expression We deserve what we tolerate! If clients are ringing you at 10pm at night and you answer the phone, then don’t be cranky that you’re having a discussion with them at this time. You’re teaching them that they can ring late and you’ll pick up. In my welcome letter to clients, I advise what my business hours are (Monday to Friday and hours). If someone asks for a client meeting on the weekend, I say sorry no. It’s done politely and pleasantly, but it rarely occurs. Sure, at times, if a client is in crisis and has always respected my time, I might offer an early or late appointment, but only in special circumstances.
- You’ve provided the service, raised the invoice and then the customer says they can’t afford the service, and offer to pay you ‘when I’ve got the money’ or at something like $10 a week.
PROPOSED SOLUTION: Again, if your T&C has clauses around late fees and interest, you’ve a fallback. I had this happen years ago with a client who owed about $600 and said they’d pay back $10 a week because they ‘had no money’. I said sure no problem, and said that the interest charges would commence from the 1st of the month. They did the maths and worked out it was akin to a credit card. The money was paid in full shortly thereafter. I had learnt years ago a hard lesson, that some clients would treat you like an interest-free bank, if you let them.
How to Set Boundaries in Business
Firstly, it’s around mindset. You need to value yourself, your team and your business. If you believe in your worth, then others will too. Someone might say ‘I can’t afford you’, which may well be true. They might be trying to get a discount, and that’s fine too – but that doesn’t mean you have to discount. If you know you’re worth it, and pricing is fair, then you can offer a smaller service or product or simply say “I understand”. Some business owners build margins into their pricing, so if someone asks for a discount, they end up where they want to be. If that is not your practice, then explain you don’t do that; you quoted with a ‘sharp pencil’ and did not build in extra margins to allow for discounting which is sometimes done in your industry.
Communication is the second aspect which is important. Being super clear about your boundaries, whether that’s in your welcome letter, T&C, client agreement or signage. Been in a store which has a sign that says ‘Abuse will not be tolerated’. That is setting a boundary. Some government agencies actually close their doors 10 minutes before finish time, so you can’t walk in at 4:29pm and force staff to work 10 minutes later. That’s a boundary being set.
Negotiation is another aspect of setting boundaries. Sometimes you have to say no, or perhaps it’s about negotiating an option. Say you’re a builder or tradie and you need to have an on-site client meeting. Your client works, which is reasonable and they can’t do standard work hours. They might suggest ‘let’s do it Sunday morning’. You might be planning family time – so perhaps say “Sorry, I’m not around then, but I could come in early on Thursday or Friday and meet you onsite at 6am?” You’re negotiating an alternative time. You don’t have to say what you’re doing, or explain yourself, just provide some other workable options.
I know some tradies who have to quote outside normal work hours as clients work standard business hours, but that should be a limited block of time, not any time over the weekend. It might be that you do quotes each second Saturday morning 7am to 11am … which is being reasonable, whilst still setting a boundary.
Those in accounts roles are often now setting boundaries so that they can work. They don’t take phone calls in the mornings, allowing them to get quality work done and then use the afternoon to handle account enquiries. Again, this is clearly and openly communicated, rather than simply not answering the phone. Often, when people know what is happening, then they are ok with it.
There was an accounting firm years ago who rated their clients. A, B, C or D. The bottom 10% were the Ds and each year they were ditched/sacked/terminated. They were clear about this (good communication) and were also clear about what make a D grade client. Their logic was that if they ditched the Ds it made room for more As and Bs. It encouraged the C grade clients to pick up their act, or fall down to a D and go. Now, obviously, this firm provided exceptional service and skills and those who worked with them wanted to stay and very much valued their expertise. A bold but effective exercise in boundary setting.
A boundary might be saying no to a client which isn’t your ideal client, or needs a service you really don’t provide or your books are full. Politely say no and stick to it. My auto electrician did that with me recently when I asked about a service he really doesn’t do. It was done nicely, well explained and he offered me the name of another business who might be able to help. Full ticks on how he handled his boundaries.
Understand that success is what YOU believe it is. I’ve worked with business coaching clients who don’t want to grow, get more clients or make more money – they simply want to work more effectively without growth. For them, that is success. I, their clients or their associates cannot say what their success is. Being clear about how your business will look or operate, so that you can then become clear about your boundaries. I coached a business owner with a young family a while ago; she only wanted to work 4 days a week, despite the business being in growth mode. That’s fine – we simply blocked that time out in her diary and when a customer asked for a Wednesday timeslot, she just explained she had a standard booking on that day. Not a lie; the standard booking was her and her children.
Accept that you cannot please everyone. Yes, sure you might lose a client or prospect, but what is the cost if you drop your boundaries and accept their terms of engagement? Remember you, your family, your team and all your other clients. If you burn out, then what happens to them? You need to work to protect yourself, the business and those which are helped and serviced by the business. Know (and decline) the things which are red flags, or create stress or angst.
Finally, it’s YOU who must stick to your boundaries. Sure, a crisis may occur and you occasionally make an exception, but for the most part, 95% of the time, you stick to your guns and uphold the boundary that you’ve set. If your phone rings at night and you know it’s not a family member or close friend, then you don’t pick up. You may have a recorded message (or text) thanking them for their call and that you’ll get back to them promptly during business hours. Again, it comes back to communication. I know one client said that when he answered the phone, the client was surprised; they had rung, only expecting to leave a message. If your rule is don’t answer the phone after 6pm, then don’t!
