I have made commitments to my clients that will be difficult for me to fill

[MGuise]

I have a freelance web/graphic design business that I have been building for a while. I recently accepted a full time job at a company working in web development. My problem is that the job starts in a couple of weeks. I have made commitments to my clients that will be difficult for me to fill while I have the full time job, i.e. due dates, etc.

As I am the only person in the company (it's an LLC) it's really too small to sell. Here is my dilemma. About a year ago I moved from a large city to a small town in south east Iowa. Two clients that I recently picked up is the city I live in. Only a population of about three hundred people. And the transport company that is located about a block from my house. I live next to these people so I don't want to make anyone mad. I need someone to take over these projects (websites) if I can. These clients have already signed contracts and paid me half up front to begin work. We are in the early stages of the design process.

So what do I do. I don't want to get into any legal problems as there is a contract. I also don't want to upset anyone because I am neighbors with them. I just don't have the time any more to commit to what I told them I would do.

Any business advice would be much appreciated.

[nap0leon]

The contract should state what the penalties are for you not meeting the deadlines, but presumably does not since you are asking the question.

Offer to refund their deposits less actual expenses incurred (software purchases specific to their project, etc.).

Also, since your concern is maintaining a good relationship with them, even if it means that you've done "some work" and don't get any compensation for it, turn over any work product that you have created thus far.

If you are far enough along that any of your work product is usable/transferable to whomever picks up the project, you could withhold a portion of the deposit for services rendered.