Why you should regularly update your Sales Contracts
According to Aberdeen Research, best-in-class companies update 56% of their contracts annually. But let's face the honest facts: When did you last review your Sales Contracts? Here are three reasons why you should be reviewing and updating your sales contracts on an annual basis.
Facing the honest facts
When did you last update your sales contracts? Our guess is, probably when they were created. Whether you had engaged a law firm, searched on the internet, or got it from a friend, you would likely have prioritized getting the contracts right. However, it is a common trend to then use the contracts in perpetuity.
Here are the 3 key reasons why you need to update the bread and butter of your business:
Changes in Law
Laws, rules, and regulations change regularly and your sales contracts should be updated to comply with current legislation and regulations. Failure to do so puts your business at risk. By reviewing and updating your sales contracts regularly, you would be minimizing the risk of litigation, fines, penalties, and/or reputational damage.
Updates to your product
As your business grows and evolves, likely, your product and offerings may also change and/or increase. If it was important enough for you to make sure that your contract terms were fit for purpose when you first put them in place, it should be important enough to update them when new products, offerings, or processes are introduced!
Changes in risk and priorities
Unexpected circumstances occur frequently. Recent global events which have impacted businesses around the world include the Covid-19 pandemic, the Suez Canal incident, the global supply chain shortage, the Ukraine - Russia war… the list goes on. Updating your sales contracts is not a “nice-to-do”, but a key strategy in being competitive and adaptable to market changes.
Use PocketLaw to update your contracts regularly to ensure that they are always up-to-date and compliant!