Why Traditional Contract Processes Are Costing You Time and Money

Picture this: You're the owner of a small but growing business. You've just landed a promising new client, and you're eager to get started. But before you can dive in, there's that pesky contract to deal with. You sigh, knowing what's coming - hours of back-and-forth emails, confusing legal jargon, and the nagging worry that you might be missing something important.

If you're nodding your head, you're not alone. Many business owners and managers find themselves trapped in the time-consuming and often frustrating world of traditional contract processes. It's like being stuck in a never-ending game of document ping-pong, where every serve costs you precious time and money.

In this article, we're going to take a deep dive into why these old-school contract methods are holding your business back. 

But don't worry - we're not just here to point out problems. By the time you finish reading, you'll have a clear understanding of:

1. The hidden costs of traditional contract processes
2. How these outdated methods are impacting your business growth
3. What you can do to streamline your contract management and save time and money

The Hidden Costs of Traditional Contract Processes

Let's start with a sobering statistic: According to a 2024 study by Deloitte and DocuSign, inefficient agreement processes result in a staggering nearly $2 trillion loss in global economic value annually. 

That's a trillion, with a 'T'! 

To put that in perspective, it's like every person on Earth throwing away $250 each year. 

But what does this mean for your business? Let's break it down:

1. Time is Money (and You're Spending Too Much of Both)

Remember that new client we mentioned earlier? Well, with traditional contract processes, you might find yourself spending hours - or even days - on a single agreement. 

That's time you could be using to actually work on client projects, drum up new business, or (gasp!) maybe even take a well-deserved break.

The same Deloitte and DocuSign study found that 55 billion hours are wasted globally each year on inefficient agreement processes. 

That's like the entire population of New York City working non-stop for an entire year, just on paperwork.

2. The Hidden Costs of Back-and-Forth

Every time you send a contract draft back to your lawyer for revisions, or play email tag with a client over contract terms, you're not just losing time - you're losing money. Think about it:

• Legal fees for contract reviews and revisions
• Lost opportunities while you're waiting for agreements to be finalized
• Potential mistakes from manual data entry or version control issues

It's like death by a thousand paper cuts, except in this case, it's your bottom line that's bleeding.

3. The Opportunity Cost of Slow Processes

Here's a scenario that might hit close to home: You've got a hot lead, ready to sign on the dotted line. But your contract process is so slow that by the time you get all the paperwork sorted, they've gone with a competitor who could move faster.

Speed can be a major competitive advantage. If your contract processes are slowing you down, you're not just losing time and money - you could be losing entire deals.

The Impact on Your Business Growth

Now that we've looked at the costs, let's talk about how these traditional contract processes are holding your business back:

1. Scaling Struggles

As your business grows, so does the volume of contracts you need to manage. If you're still relying on manual processes, you'll soon find yourself drowning in paperwork. It's like trying to bail out a leaky boat with a spoon; you might keep afloat for a while, but eventually, you'll sink.

2. Reduced Agility

In a world where market conditions can change overnight (cue the reminder of a global pandemic), your business needs to be able to pivot quickly. But if your contract processes are slow and cumbersome, you're essentially trying to turn a cruise ship with a paddle.

3. Increased Risk

Manual contract processes are prone to human error. A missed clause here, a typo there, and suddenly you're exposed to significant legal and financial risks. It's like playing a high-stakes game of Jenga with your business on the line.

4. Customer Frustration

Remember, your clients are dealing with the same slow processes on their end. If you're making it hard for them to do business with you, they might start looking for easier options. In other words, your contract headache could become their reason to ghost you.

So, What Can You Do About It?

Now, we know what you're thinking: "Okay, I get it. Traditional contract processes are bad news. But what's the alternative?"

Great question! While endorsing our own solution specifically would be self-serving, we can point you in the right direction:

1. Embrace Technology

There are many digital contract management solutions out there that can help streamline your processes. Look for platforms that offer features like:

• Digital signatures
• Version control
• Automated workflows
• Standardized templates

2. Standardize Your Processes

One of the biggest reasons traditional contract processes take too long is reinventing the wheel for every agreement. By creating standardized templates and processes, and utilizing common market provisions, you can dramatically reduce the time and effort involved.  But remember, reviewing your standardized template will be “reinventing the wheel” for your client.

3. Focus on Clarity and Simplicity

Legal jargon has its place, but it doesn't need to overwhelm your contracts. Look for ways to simplify your agreements and make them more user-friendly. Your clients (and your business team) will thank you.

4. Prioritize Building Trust and Enhancing Collaboration

Choose solutions that make it easy for all parties to trust each other and collaborate on agreements. The fewer words, pages, emails and versions you have to deal with, the better.

5. Keep an Eye on AI

Artificial intelligence is making waves in the legal tech world. While it's not a magic bullet, AI-powered tools can aid your creation and review of agreements, particularly if you are already knowledgeable about drafting and reviewing contracts.

The Road Ahead

Changing your contract processes might seem daunting, but remember: the cost of doing nothing is far higher. Every day you stick with outdated methods is another day of lost time, money, and opportunities.

But here's the good news: By taking steps to modernize your contract processes, you're not just saving time and money. You're positioning your business for growth, improving your client relationships, and giving yourself more time to focus on what really matters - running and growing your business.

So, are you ready to break free from the shackles of traditional contract processes? It might just be the best business decision you make this year. After all, in the words of the great Wayne Gretzky, "You miss 100% of the shots you don't take." Isn't it time you took your shot at better contract management?

Remember, the goal isn't just to have faster contracts; it's to have better business relationships, reduced risk, and more time to focus on what you do best. 

And that's something worth signing on the dotted line for.