Why are you losing contracts?

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I still find it amazing how many companies lose contracts. After a quick survey, over 90% of companies we talked with have admitted to losing contracts multiple times. These legal commitments one organization makes to another can have real implications to the future of your company.

Most companies don’t start off with good contract management practices because they are small, and don’t think there is a need. They put it off until they are larger and more established. Then when they are larger, they start to realize just how many contracts they really have, and how long and hard it would be to track all of them down. This starts to snowball very quickly, as people start leaving your company, and inadvertently taking contracts with them.

One client of a major Travel corporation, mentioned their contract management best practice was to have each sales rep store their contracts in their own shared drive. There was no expectation around how many versions, redlines, iterations they needed to store, they were just solely responsible for it. The problem comes in when that salesperson decides to leave the company. We all know how fluid the sales culture is, most sales reps stay at a company for a little less than two years. And sure enough, when these sales reps leave, the company IT department deletes that sales rep’s shared drive, and all the contracts along with it.

Another example, a company that has been around for years, is finally ready to take their first round of venture capital funding. The VC firm asks the CEO to produce all of their corporation documents, major contracts from the past years, and any other key deals. This is standard practice in the VC industry when funding takes place. Only problem, since this company had been around for so long and didn’t have any contract management plan in place, it took them almost seven months to find these contracts: countless hours of wasted productivity.

In the end, it’s always a good idea to start storing your contracts in an organized way from the beginning. DealSafe’s entry-level package makes it very easy. We even provide a team of contract experts to extract the key terms from your contracts for you—all you need to do is upload your contract files. Then, the platform will automatically extract the terms and start creating alerts, graphs, charts, and tables depending on your company’s needs. There’s really no need to go through all the pain that poor contract management breeds. Get started today, email us at hello@dealsafe.co.

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