The Importance of Contract Management for Growing Businesses: Experts’ Opinions
Contracts are extremely important for growing businesses. Contracts are the foundation in which relationships are developed with both your customers and your suppliers or funders. A primary example of a contract is a lease for your office location or equipment.
Many times the size of the office space or the number of copiers or other equipment you may need changes as your business grows, or sometimes strategically shrinks. Negotiating clauses that allow you to adjust your space or quantity of goods as your business changes is important.
In many of the leases I have negotiated I advocated for clauses that allowed the client to terminate the lease with the loss of their government funded contract. This was important because without the revenue of the government contract, they had no need for the space or the funding to pay for it. The same is true for office equipment such as copiers.
If you are scaling a business up or down, you need to have the ability to terminate contracts, even if there is a nominal fee, to have the flexibility to accommodate your growth.