If a prospective client doesn't take your business serious enough to sign a contract, there's a good chance they won't take it serious enough to pay the bill on-time or in full. Or, they may inundate you with additional requests, edits, or changes that go beyond the scope of what you originally discussed. Without a contract to back you up, you may be stuck with hours of uncompensated work.
While a contract is a necessary business tool, it's possible that your own contract is intimidating to some people. Is it possible the contract itself contains too many unnecessary sections or too many pages? If it's not possible to streamline the contract itself, how you present it can help ease fears.
A contract is not only for your own protection. It protects the client as well. Emphasizing that aspect of the contract may help make it less intimidating to some potential clients. Sit down with the client and explain how the contract spells out exactly what the client will get and how much they will be paying so that there are no surprises along the way. Give the client ample time to read the entire contract. If possible, go in another room so you don't appear to be hovering over their shoulder.
If the client still refuses to sign, take that as a sign to walk away. A small job is not worth the hassle it would cause if something goes wrong and you don't have a contract.
