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Creating policies is probably one of the least sexy tasks in your business.
Until you realize how much they protect you and make your life easier.
Then, suddenly, policies become very exciting to work on.
Think of creating policies as the ultimate “What if?” game. If you’re an anxious type like me, you’ve been winning at this game your entire life. You’re gonna nail it.
WHY IT MATTERS:
Policies create transparency, set expectations, guide customers, and keep things fair across the board.
Plus, it’s nice to be able to say, “It’s the policy,” as a response to the occasional pushy customer.
What makes a good policy
Some solopreneurs will say they have their policies sorted out, but when you look at it, it’s pieced together like the kindergarten art project that’s still sitting in your mom’s attic.
If you squint and turn your head to the left a little, you can sort of see what they were going for.
Whether you need to create your policies from scratch or update any existing ones you may have, make sure to consider the following -
It follows the law.
Federal and state laws may impact your policies. For example, the FTC’s Cooling Off Rule, which I’ll touch on later.
Connecting with a business attorney is always a smart move.
DIVE DEEPER: Find a business attorney
If you need some free help or guidance on finding a business attorney, visit SCORE Mentorship.
This is a free service made up of volunteers from different industries. You can be matched with a local mentor to help you with your business needs.
If you're not in the U.S., your country likely has something similar. Google "Free business mentoring" and look for results that end in a .gov or similar website endings.
It’s customer-centric.
A customer-centric policy means that it protects you and your customers.
For example, a cancellation policy requiring two weeks' notice and charging 100% if canceled within those two weeks isn’t customer-centric.
The policy is clear and easy to understand.
Rule of thumb: If a 1st grader reads your policy and doesn’t understand it, it’s too complicated.
Use good writing practices, such as:
Avoiding jargon
Limit most paragraphs to 2-3 simple sentences each
Use bullet points as needed
Include line breaks between paragraphs
Use visuals as they make sense
*This isn't always possible for legal-heavy documents, but it is a good goal whenever possible.
It’s made readily available.
Make your policies easy for your customers to find. Having your policies hidden in your terms of service on your website isn’t good enough.
As a bonus, have customers sign off that they’ve received a copy of your policies and have read them to avoid the whole “But I didn’t know!” annoyance.
Directions are clear and easy to complete.
If your policy requires customers to take certain steps, such as submitting a form, make it easy to understand and do.
Consider industry standards.
Your industry may have well-known standards for certain policies.
You don't have to use the same standards unless necessary by law, your industry, or insurance.
You do want to understand what the standards are, so that if you do deviate, you know how to communicate that to customers who may come in with different expectations.
Policies You Want to Have
Not all of the policies I list below may apply to you.
Some are industry-specific, but just because it’s only used in another industry doesn’t mean it can’t be adapted to be helpful for you.
I’ve created as many prompts as possible to help get your mental hamster running, but there may be things missing that are specific to your industry or how you run your business.
As you’re going through, keep an eye out for what else you may need to add.
Quick Disclaimer: The information I'm sharing is to help you to think through possible scenarios you'll encounter with customers. Create your policies and decide on how you want to handle different situations. I would strongly recommend that you consult with a qualified attorney to make sure your policies are up to snuff with all applicable laws and regulations.
Communication Policy
Some services just can't be done without good communication. To help protect everyone goals, a straightforward communication policy can be a real sanity saver.
You might need one if: How and when your customers communicate with you affects your ability to deliver your service.
Example services this may apply to: Tax preparation, home organizers, wedding planners
What you might want to include:
How you’ll be communicating with customers
How customers need to communicate with you
Time frames that the customers need to meet
What happens if customers fail to meet the requirements
What customers should do if they have difficulty meeting your communication requirements
Payment Policies
Money makes us all a little crazy sometimes. To help keep everyone on track, a payment policy will be what keeps everything fair and straightforward - no matter how crazy we get.
You might need one if: No ifs, you do need one.
Example services this may apply to: Photographers, tutors, pet groomers
What you might want to include:
What forms of payment you accept
How credit card surcharges are handled*
What the payment schedule is for payment plans
What happens when payments are late
What’s considered a late payment
Grace period for payments
Interest added for late payments, if applicable
What happens if a check is bounced
What happens if a customer cannot or will not complete a payment for services rendered
How chargebacks are handled
How late payments affect their services
*DIG DEEPER: CREDIT CARD SURCHARGE LAWS BY STATE
Most states have laws for how credit card surcharges are included in pricing and shared with customers.
While you still need to check with a local attorney, here's a quick guide on credit card surcharge laws by state.
Refund policy
Customers ask for refunds for both valid and wild reasons. Regardless of the reason, having a refund policy gives you something to lean on and inform customers of before they hire you.
You might need one if: You do, even if the policy is no refunds.
Example services this may apply to: Event planner, potty training coach, custom songwriters
What you might want to include:
The conditions a refund is offered
The time frame for refund requests
The steps a customer must take to request a refund
Whether a refund is in full, partial, or case-by-case basis
How refunds are returned
When they can expect to receive their refund
What to expect once the refund is approved
For example, they may lose access to anything you’ve provided
How third parties may affect their refund
How physical products included as part of the service are handled as part of the refund
Return / Replacement Policy
When a hiccup happens, emotions run high. Having a set return and replacement policy in place helps keep things moving, manage everyone's emotions, and set expectations.
You might need one if: Products are included with your services or can be purchased separately.
Example services this may apply to: Professional organizers, indoor air quality testers, home eco-consultants
What you might want to include:
Conditions for a return to be accepted or a replacement to be offered
The time frame to return an item or request a replacement
The steps customers need to take to return an item or request a replacement
When replacing items, how quality and value are matched
What happens if a replacement is not available
How returns or replacements affect their services with you
What to expect after the return or replacement has been approved
How refunds and replacements are delivered
When to expect a refund for their return
Who pays in the event of a replacement being needed
Cost of labor if a replacement is needed
Who pays for shipping for the return or replacement of an item
Who pays if insurance needs to be added for expensive items being shipped back
How fragile items being shipped back should be shipped in order for the return or replacement to be accepted
How items broken in shipping are handled
How custom items may be handled differently compared to the standard return and replacement policy
How third parties may impact their return or replacement item
Guarantee
If you offer a guarantee, this will outline what happens if you fail to meet your promise, how customers claim their guarantee and the limits.
You might need one if: There is an expected or promised outcome based on your service.
Example services this may apply to: Career consultant, mobile car cleaning, wedding social media management
What you might want to include:
What you are promising will happen
What happens if your promise isn't met
The duration of the guarantee
What the guarantee covers in terms of labor, parts, shipping, and third-party services
The steps customers need to take in order to claim their guarantee
Requirements customers need to meet
Details on the additional services offered for the guarantee, such as:
What services are offered
How long they’re offered for
How long they’re covered for
Details on additional products used for the guarantee, such as:
What products are covered
How long the products are covered after replacement
When you replace an item:
How replacements are determined in the event the same product isn't available
Who is responsible when there is a price difference in the replacement
Who is responsible for the shipping cost of a replacement
What labor costs there may be to replace an item
DIG DEEPER: Read 'Creating a Guarantee That Doesn't Screw You Over.'
Scheduling Policy
Scheduling has a lot of moving parts, so having a policy around all of the "what ifs" is helpful for everyone involved.
You might need one if: Clients need to book appointments to have services completed.
Example services this may apply to: Audio video designers & installers, dog walkers, nannies
What you might want to include:
How appointments are booked
How much is owed when booking an appointment
If you require a credit card on file to book
What information is required when scheduling
What to expect after an appointment is booked
If you send confirmations of their appointments:
How they're sent
When they're sent
If confirmation responses are necessary to keep the appointment
No Show Policy
Waiting around for a customer to show up to an appointment only to be ghosted or forgotten about sucks. Your No Show Policy sets expectations and protects your time in the event a customer doesn't show up.
You might need one if: You need your customers present to perform part or all of your service.
Example services this may apply to: power washing, personal chef, home repair services
What you might want to include:
How a 'no-show' is defined
What happens in the event of a no-show
What charges may apply for appointment no-shows
What customers should do after a no-show
How an appointment no-show impacts your customer’s service
If appointments are allowed to be made up after a no-show
Rescheduling Policy
Life happens, and rescheduling needs to happen with it. Your rescheduling policy outlines the process for rescheduling services, notice requirements, any potential fees, and how it impacts their services.
You might need one if: Your presence is required at a specific time or place.
Example services this may apply to: House sitters, music teachers, mobile mechanics
What you might want to include:
How a customer should reschedule
Notice requirements for rescheduling
Fees related to rescheduling inside and outside of the required notice period
How and when fees are collected
How rescheduling may impact their service
Limits on rescheduling
The allowed rescheduling window
The impact of an appointment that isn't rescheduled
For example, they may forfeit the service and pre-paid cost if the appointment is not used by a specific date
Cancellation policy
Your cancellation policy outlines the process for canceling services, notice requirements, any potential fees, and how it impacts their services.
You might need one if: Your presence is required at a specific time or place.
Example services this may apply to: Debt relief coach, tattoo artist, arborist
What you might want to include:
The steps required for customers to cancel
The required notice window for cancellations
The fee if an appointment is canceled outside of the cancellation window
How the fee is collected if an appointment is canceled outside of the cancellation window
How a cancellation affects their overall service
Appointment Policy
Your appointment policy outlines your expectations for an appointment to go smoothly and what happens if certain requirements aren't met.
You might need one if: Your presence is required at a specific time or place.
Example services this may apply to: In-home speech therapy, hosting and event services, travel planner
What you might want to include:
What customers need to do or bring to be ready for an appointment
Who else may need to be present
What happens if a customer is late to an appointment
Privacy Policy
A privacy policy lets customers know what they can expect you’ll do with any information you collect - either directly or indirectly.
You might need one if: You handle any client information.
Example services this may apply to: Virtual assistants, home relocation services, bookkeepers (but really, all of them.)
What you might want to include:
What information you collect
How that information is collected
How long that information is kept
Where the information is kept
Who has access to that information
How a customer can request you delete their information in your system
How information is shared or used
Early Termination
This outlines the steps and fees for ending a contract early and the impact of services both rendered and to be delivered.
You might need one if: Customers sign a contract or commit to working with you for a set period of time.
Example services this may apply to: Long term pet sitting, she shed designer and builder, seasonal landscape services
What you might want to include:
The steps needed to terminate a contract
Any fees associated with terminating a contract
What happens with any money that was pre-paid
If money is to be refunded, how and when it will be returned,
What happens to the resources or items already received or that customers have access to
How third-party services impact early termination
Liability Policy
This provides a framework for who is responsible for what, including damage or loss caused during the delivery of your service.
You might need one if: Anything could be damaged - whether tangible or intangible - because of your services.
Example services this may apply to: House painter, pool cleaner, astrologist or psychic
What you might want to include:
What happens in the event of accidental damage or something is lost while providing your service
What happens in the event something gets damaged or lost indirectly because of your service
What happens if someone gets hurt
What you are not liable for
What the customer is liable for
In general, who is responsible for what in the service delivery
Cooling Off Rule
This is a rule by the FTC that lets customers cancel a purchase within three business days if it was made at a location other than the seller’s regular place of business.
You might need one if: You sell services at locations other than your regular place of business, such as trade shows, fairs, customers' homes, or through door-to-door sales, telemarketing, or other direct sales methods.
Example services this may apply to: holiday home decoration services, home repair, in-home tutoring
What you might want to include:
An explanation of the cooling-off period
How to cancel and provide a cancelation form, if necessary.
How the refund will be processed
Exceptions to the rule
What to expect after it’s been canceled
Legal references (like the FTC website)
DIG DEEPER: You can learn more about the Cooling Off Rule on the FTC website.
BONUS: Happiness Clause
A Happiness Clause is typically associated with landlords. It allows renters to end their lease if they’re unhappy with their living situation. Often, landlords will use this as a way to address renters who are constantly complaining.
This is one of those policies that is used in one industry but can be usefully applied to another. It may not be one that you offer publicly, but one that you keep in your pocket in case you need to manage a customer who is wildly nitpicky.
You might need one if: Customers sign a contract or commit to working with you for a set period, AND you want to provide them (and you) an easy out if they’re complaining a lot.
Example services this may apply to: Event planner, in-home teacher, house manager
What you might want to include:
Why you’re offering it
What conditions need to be met in order to use the Happiness Clause
The time window for customers to utilize the Happiness Clause
How much notice you need before they can move on
What happens to materials customers may have received or expected to receive
What happens to the access customers have to something you’ve provided
The steps customers take to claim the Happiness Clause
An Internal Policy
When you put a lot of effort into making clear and fair policies, it's only natural not want to deviate from them - ever.
But here's the thing - situations are going to come up where you'll need to deviate from policy.
Policies attempt to cover the most common situations. But even for us expert preppers, there's only so much we can plan and create a policy around. Humans have a gift for finding new, weird ways for things to go sideways.
Create an internal policy for yourself around when bending policy would make sense for you and mentally be at peace for needing to do so sometimes.
THE TAKEAWAY
Drafting policies may not be the funnest part of running your business, but the benefits are super worth it. When done right, they make your business easier, keep your business legal, and help you have better relationships with your customers,