blog

<p><em>You start your day by drinking a nice cup of coffee and reading your emails. Suddenly, you notice that one of your most important clients just contacted you. You open their message, and it is with horror that you learn that they do not want to move forward with their project. What can you do? What recourse do you have? How can you manage contract termination like a pro if you are a freelancer?</em></p> <p></p> <h3>The first thing to do is to read your contract</h3> <p>Before you answer anything, take the time to read your <a href="https://www.momenteo.com/blog/the-importance-of-having-a-good-contract-of-services" target="_blank">contract of services</a>. If you have thought about everything, there are great chances that you added a section about contract termination to protect yourself. For example, you could state that your client can only terminate a contract by giving a prior notice of a specific number of days or write that there are cancellation fees. Feel free to meet a business lawyer to confirm everything possible to do in your situation.</p> <p>After you read your contract, reply to your client stating all the accepted terms and conditions. If you have started to work or purchased materials for the project, you could bill these elements.</p> <p></p> <h3>Try to get an agreement</h3> <p>If it is a big project, you may have scheduled time or refused other clients. Therefore, seeing that your client wants to cancel is frustrating. If you did not sign a service contract, getting an agreement with your client could be possible, especially if you have started to work. Of course, you will likely not be able to get a refund for all missed business opportunities. Our advice is to aim for goodwill and show that you are ready to meet each other halfway. Could your expertise be helpful for another project? Whatever the final decision, try to remain professional at all times.</p> <p>If, on the contrary, a contract was signed and the terms are not respected, you need to consider if you want to take legal action. Often, you need to start the process by <a href="https://www.momenteo.com/blog/how-to-send-a-formal-legal-notice" target="_blank">sending a formal notice</a>. Once more, do not hesitate to talk with a business lawyer if required.&nbsp;</p> <p></p> <h3>Start prospecting again</h3> <p>Remember to start prospecting as soon as possible when you know your contract is canceled. Do not wait; look at business opportunities and jobs on websites and groups. Communicate with key people in your network. Contacting potential clients you declined by telling them you finally have time for their project could also be relevant. Why not take this opportunity to reach some past clients who were satisfied with your services to see if they need anything?</p> <p>Whether you have been a freelancer for a long time or not, it is recommended that you <a href="https://www.momenteo.com/blog/6-ways-to-diversify-your-revenues-when-you-are-a-freelancer" target="_blank">diversify your sources of income</a> and get more than one client to avoid several problematic situations.</p> <p></p> <h3>Consider your emergency fund</h3> <p>If you are not able to get clients or contracts after the termination and you still have plenty of invoices to pay, you could use your emergency fund until your situation improves. Unfortunately, <a href="https://www.momenteo.com/blog/the-importance-of-an-emergency-fund" target="_blank">emergency funds</a> are necessary when we are freelancers and must live with financial uncertainty.&nbsp;</p> <p>How can we build an emergency fund? Every time you receive a payment, putting an amount aside for unplanned expenses is recommended. You could have a dedicated account for this or use a TFSA to avoid spending it.</p> <p></p> <h3>How do you make sure to get serious clients?</h3> <p>To avoid this type of situation, what can you do to ensure having serious clients? What can you do to prevent bad clients who change their minds constantly or cancel at the last minute? Here are four actions to check if someone is on its toes.</p> <p><strong>They are not questioning your expertise</strong></p> <p>If your potential client does not depreciate your work or mention that they could do it themselves because it is easy, it is a good sign. There is nothing heavier than having a client who questions your expertise continually.</p> <p></p> <p><strong>They are not wasting your time</strong></p> <p>A potential client who is late at appointments or does not reply to emails for days should be avoided. For the best of your business and mental health, avoid people who are simply wasting your time.</p> <p></p> <p><strong>They accept to sign a contract of services</strong></p> <p>One of the first tests if you have a new business opportunity is the contract of services. If your potential client refuses to sign a contract by stating it is unnecessary, run as far as possible!</p> <p></p> <p><strong>They accept to give a down payment</strong></p> <p>Another way to see if your client is serious about this partnership is to ask for a <a href="https://www.momenteo.com/blog/freelancers-should-you-ask-for-a-down-payment" target="_blank">down payment</a> before starting to work. This way, you decrease the chances of seeing your client disappear without paying you after the end of the project.&nbsp;</p> <p></p> <p>In conclusion, it is never great to see that a client wants to cancel a project, but remember that you have rights, especially if a contract is signed. Consequently, start by reading what was accepted by both parties, try to find an agreement, and start looking for other projects. Good luck!</p>