You must have realized that we are approaching that period of the year when we usually run out of control in some of our activities at the workplace. The family activities increase during the holiday period.
It’s time we send and share with friends and families. Thus, we acknowledge this celebratory period as logical and understandable. This is why we accommodate increased family activities in our work lives.
It’s indisputable that you will not be willing to engage in contracts, documentation, or any other form of legal matters that concern your business at this time. Yet, I would advise you to take a proactive attitude not to encounter problems for such negligence in the future. The consequences can even be severe in some cases.
What we are talking about here is business contracts. I want us to review the importance of being attentive to the matter in this article.
Signing contracts with workers
It’s vital to ensure that the agreements signed with the human resource contractor or the employees are up-to-date. You should also check that they align with the most recent regulations for the labor market in force.
When you review these contracts, you evade non-compliance lawsuits in the future. You should also review all the business contracts that are about to expire. Check whether you expect an increase in the growth or sales portfolio so that you can take the necessary action in time.
Contracts with suppliers
Some business operations can increase the costs of running the business. A business lawyer in Miami should review business contracts with suppliers, clauses, and future maturities. This will help assess any issues and provide for last-minute problems that can affect the set objectives.
It will also ensure adequate preparation for costs increase in services and inputs. It is good to identify such issues early enough so that your business lawyer can call suppliers and start the negotiations. It is advisable to make some calls to your supplier’s competitors so that you get more negotiation elements when you sit down to discuss the costs.
Contracts with customers
This is the most suitable moment where you can work to keep customers. You should review the data of your customers so that you get a constant flow in revenue. You need to have the list of business contacts expiring in the next two months.
Make a realistic projection to determine the number of revenues that the business will lose when the contracts are concluded. You should then determine and establish a strategy for new customer attraction or retention of the exiting ones. Doing so will help you cover for those whose contracts will conclude. The best thing about taking this measure is that you will expect a possible drop in profits and customers.
Impact of Digitalization on Contract Management
Through digital tools such as contract management platforms and cloud storage, companies can organize, store, and access all their agreements in a centralized manner, eliminating the need for physical documentation that can be more vulnerable to loss or damage.
One of the greatest benefits of digitalization is the automation of important data such as reminders for deadlines and renewals. With specialized software, companies can schedule alerts that notify responsible teams when key dates approach, allowing for proactive preparation for negotiations or contractual adjustments. This minimizes the risk of non-compliance or unwanted automatic renewals, optimizing control over the terms and conditions of each agreement.
Now, the question many often ask is… Are these tools secure? When working with digital contracts, choosing a reliable and secure management platform is essential to protect sensitive company data, prevent fraud, and maintain the confidentiality of business agreements.
For this reason, many employ data encryption both in transit and at rest, ensuring that information is protected at all times. This encryption system converts information into an unreadable code for anyone attempting to intercept it without authorization, providing your company with an additional layer of protection. With two-factor authentication (2FA), in addition to the password, a second verification code sent to a personal device is required. This makes it difficult for unauthorized individuals to gain access, even if they obtain the password.
Risk Management Starts with the Contract
The first step in managing risks is to identify the potential threats that could affect contract compliance. These threats may include delivery failures, price fluctuations, changes in regulations, unfavorable market conditions, and financial issues of the parties involved. A detailed analysis allows for anticipating these situations and making informed decisions.
Not all risks have the same likelihood of occurrence or the same impact on the business. It is important to categorize risks according to their possible effect on the company and the likelihood of their materialization. This assessment allows for prioritizing critical risks that need to be managed urgently and allocating the necessary resources for their mitigation.
Contractual clauses, for example, play a key role in risk management. Including provisions such as force majeure clauses, penalty clauses for non-compliance, and limits of liability can protect the company in the event of unforeseen events. These clauses must be drafted accurately and in compliance with local regulations to be effective and valid in the event of a dispute.
Once signed, a contract should not be forgotten. We will discuss this in the next section.
Business documents and their renewal
The business lawyer should help ensure that your documents are up-to-date. This will avoid possible legal vulnerability. It would be best if you made it a habit to register, renew, and pay on time for your licenses, permits, and other legal documents.
You should always update each of your legal documentation before their expiry. Some of your documents may need renewal during the holiday or on a closed date. Such a situation can be a headache and probably attract fines from the authorities. This is why you should check and update or renew the documents in time. Then you will not be a victim of a situation when the government reduces its working schedules.
It’s also important to review your business documents to get high control over your legal obligations. You also control your cash flows and expenses before they become a nuisance to your business.
You can leave in the hands of your trusted business lawyer
A lawyer is critical in your business. Specifically, they play an important role in entering into business agreements and signing contracts. When you undertake any of the above-mentioned processes, the lawyer’s presence will ensure that things are done according to the law.
He/she will also guide you and your business on the various legal matters for the smooth operation of your business. They give you all the available legal possibilities when you encounter challenges and the repercussions for each alternative. Some businesses give the work of preparing and maintaining these documentations to their lawyers.
Such a step gives the business owner the advantage of having enough time to concentrate on the business’ operation matters. They get enough rest and tranquility.