What is the Importance of Contracts to a Business?
Written contracts can be a real benefit to a business. A lot of time business owners will think that’s a lot of trouble. It’s going to scare off my customers. How am I going to keep track of all that paperwork, and they think its a waste of time.
In real life, a contract saves you time. It’s not something you do because you think you’re going to get sued. It’s something you do so that you have the opportunity to talk to your client, your customer, your vendor. Talk through the transaction, see that each party’s expectations are the same and that way you don’t have default. Because everyone knows what to expect and what there suppose to be do going into it and then its much simpler to do it.
If you don’t have a written contract, if you don’t spend that time to chat through the transaction, you’re going to go into it with different expectations and its more likely to have disappointments and failures.