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In this video tutorial, the importance of having a service agreement before operating a business contract is emphasized. When starting out as a newbie, it is common to focus on fulfilling the demands of the client and providing all necessary documents, such as insurance information, EIN number, and W9 form. However, it is crucial to remember to protect oneself by having a service agreement in place to outline the terms and conditions of the work. This ensures that both parties are clear on expectations and responsibilities, ultimately safeguarding the business.