Offering a guarantee to your customers can only work in your favor. Someone who may be wavering on a purchase is more likely to purchase one of your products or services if they know there is a guarantee to fall back on. Once the product or service has been purchased, it is up to you to be the best guarantee provider you can be to ensure they don't need to cash in on your promise. If you play your part, chances are you will never need to accept a returned product or refund fees from a service provided.

Think long and hard before establishing a guarantee policy, because once it goes public, you can't take it back. Here are a few suggestions on how to use guarantees to benefit your business:

1. If you are offering a new product or service, offer a guarantee to entice customers to try something new.

2. Choose one of your most popular products or services and offer a lifetime guarantee with it.

3. Know where to look for loan guarantees for your business.

Action Steps
The best contacts and resources to help you get it done

Offer a guarantee with new products or services

If you want your customers to try a new product line or a new service you are going to offer, give them a boost to try it out. If they don't have any incentive to go for something new, why wouldn't they just stick with what they are used to?

I recommend: The key to getting a guarantee to work for you is to write a guarantee that is strong and that your customers feel comfortable with. SCORE offers six steps to creating a guarantee that will work for you. It may help to read other company's guarantees, as well, to see what other businesses are promising to their customers. Look at Nature Hills Nursery's or Phillips' guarantees to get some ideas.

Establish the terms of each type of guarantee

Research shows that customers are less likely to cash in on a guarantee the longer it is. The theory is that people don't often second guess their purchase if it is guaranteed for a year or even for a lifetime rather than a guarantee that only lasts a few weeks. Once you have decided on the terms, put your guarantees in writing.

I recommend: At LawDepot.com, you'll find guarantee "fill-in-the-blank" contracts that help you to make a custom guarantee just by filling out the appropriate information. If you are in the real estate business, AllBusiness.com offers sample guarantee information for the guarantee on a residential lease.

Offer guarantee language for lending or construction

If you're making a loan, you'll want to get your borrower to sign a guarantee statement as part of the loan documents. If construction is your business, you will likely want to offer another form of guarantee, a surety bond to protect yourself and your client if you are unable to complete the work.

I recommend: You'll find on FormsGuru.com a sample of loan guarantees. Be sure to be clear on the terms and when payments are due. Find a surety bond through the U.S. Small Business Association which helps small contracting companies guarantee their work.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Start small and work your way up. Try offering a guarantee on certain items and give it some time to decide whether or not it is effective for your business. As you start to find guarantees working for your bottom line, consider guaranteeing more items or services.