Common Business Problems

Unrealistic Customers? How to Manage Scope Creep

A significant part of owning a business is learning to manage project scope creep. Scope creep, for those unfamiliar with the term, is when a client requests changes or services that were not part of the original agreement. Before you know it, you’re doing more work than you initially charged for, drastically reducing your profits.

 

We’ve all seen it happen: your client contracts for a project, then push for more work, extra rounds of revisions, or additional services for no extra charge. Business owners frequently give in to please the customer, but this unpaid labor can kill your bottom line. So here’s what you need to know about how to avoid unpaid project scope creep.

How to Handle Unreasonable Customers

If you’re having trouble learning how to manage scope creep, you’re not alone. It might start innocently enough: a client requests a minor change, and you don’t see the need to create a change order because you have a good relationship. 

However, this kind of behavior can quickly spiral out of control. For example, the client might request additional changes or services, thinking they can get more work for no extra charge, or you might throw in free services for multiple clients. As a result, you’ve completed hours and hours of work you’re not getting paid for. 

It doesn’t have to be that way. Here are a few tips on how to manage scope creep

  1. Don’t start the job without a contract. Setting expectations with customers from the outset is essential so every party knows what to expect. The contract is the place to put these expectations in writing.
  2. Ensure you have a solid written agreement in the contract specifying how the revisions, change orders, and additional services will be handled. Talk about this with your customer, too—don’t just hide it in the fine print.
  3. Prepare yourself for how you will handle a request to absorb the change order. If you have difficulty saying no, develop a few scripts you can use. Preparation will prevent you from being caught off-guard at the moment.
  4. Use project management software if possible. The software makes it easy to track the progress of each customer, as well as billable hours. If you notice that a particular client repetitiously keeps pushing for more hours, you know it’s time to talk.
  5. Be aggressive with your communication from the beginning. If a customer is evident at every step of the process, it’s much less likely that changes will be needed later. A big part of learning how to manage scope creep is preventing additional revisions from occurring.
  6. Have a mindset that preserving your rights is not conflict; it is negotiating a solution. Saying no to a client can leave a bad taste in your mouth, but protecting your boundaries is crucial for profitability.

One aspect of owning a business is figuring out how to manage scope creep successfully. To lead effectively, you should constantly strive to learn new tactics. Sign up for my free weekly blog articles or a complimentary coaching session for more fabulous leadership tips from a qualified business coach.

Coach Dave

 

10 CRITICAL RESPONSIBILITIES OF A BUSINESS OWNER

LEARN MORE about the book or fill out the form below to download it.

Follow Dave
Dave Schoenbeck is a professional business and executive coach who translates complex business methods, processes, and strategies into actionable plans to dramatically improve financial results. Read more about Dave here.
Follow Dave
Dave Schoenbeck

Dave Schoenbeck is a professional business and executive coach who translates complex business methods, processes, and strategies into actionable plans to dramatically improve financial results. Read more about Dave here.

Share
Published by
Dave Schoenbeck

Recent Posts

Don’t Procrastinate: It’s Time to Do Company Succession Planning

Business succession planning is preparing your business for an eventual transfer of ownership in the…

3 days ago

How to Turn Your Problems and Obstacles into Opportunities

In business, obstacles tend to appear when we least expect them. We can allow ourselves…

1 week ago

Irresistible Tips on How I Can Identify and Create My Unique Small Business Value Proposition

Does your business have a customer value proposition? Many business owners overlook this crucial step,…

2 weeks ago

How to Protect Intellectual Property as a Small Business Owner

The term “intellectual property” (IP) can confuse small business owners. Your intellectual property is essentially…

3 weeks ago

What do General Managers do, and What are the Roles and Responsibilities of a GM?

When you first start a business, you usually have to be the manager, sales team,…

1 month ago

Why You Should Develop Content Monetization Strategies for Your Business

If you’re not repurposing your business’s online content for monetization purposes, you’re missing out on…

1 month ago