Since time immemorial contracts have helped businesses and commerce to settle down negotiations. Back in those old days, businesses were extremely simple and so were the contracts. Almost a century back contracts were done orally and fulfillment of contracts mostly hinged on personal goodwill. But as the decades passed by, businesses spurred by their global ambition had started venturing into complex territories and this process accelerated in a big way with the advent of globalization by the turn of the 21st century.
Globalization alone has turned businesses into a complex phenomenon. It has not only made businesses dynamic but also vulnerable and unpredictable at the same time. The burgeoning startup industry, which partly owes its existence to globalization, has obviously not remained immune to these precarious challenges. With all their vulnerabilities and susceptibility, the importance and onus of overcoming these monumental challenges on startups are even greater. It needs to ensure that all its contracts are flawless and are completely free from all the legal loopholes. Sometimes all it needs is one crack in a contract to threaten the very existence of a startup.
Why use Contract Management Software
To avoid this nightmare and dreadful situation, startups need to look up for digital solutions to streamline their entire contract process and the simplest way to do this is to subscribe to Contract Management Software. Some startups may fret about their shoe-string budget and understandably so considering their financial vulnerabilities. However, in today’s times when the fortunes of any business can be changed in a flash of an eye, Contract Management Software cannot be considered as a sundry expense.
If the shadow of a doubt is still lingering then one of the first things that need to be done is to learn more about the benefits of contract management systems here. But before exploring benefits, let’s first demystify what really is Contract Management Software.
Contract Management Software, sometimes technically referred to as Contract Lifecycle Management software (CLMS), is a system that streamlines the entire process of contracting – right from creation to execution and beyond. It touches every important juncture within a lifecycle of a document.
Benefits of Contract Management Software (CMS) for startups;
Faster:
CMS or CLMS helps in creating instant contracts based on ready-made templates with just a few clicks. This obviously helps startups in saving a great amount of time and effort, which is never possible when contracts are created through the manual process.
Flawless & error-free:
Manually created contracts or contracts created through simple copy-pastes are often prone to errors including legal loopholes, which can prove fatal for fragile businesses like startups. But such a dreadful thing is unlikely to occur with CMS. Simply because all the templates in CMS are not only legally compliant but are almost error-free in every sense.
Scalability:
Whether a startup wants to create 50 contracts for their newly hired employees or a plethora of sales agreements with vendors, CMS can create these contracts without giving startup founders any major headaches. The great thing about CMS is that it can create contracts on a scale without draining the resources of startups. The readymade templates can generate tones of contracts for different purposes (sales, HR, finance, etc.) within just a few hours.
Searchable:
Imagine a scenario, your most productive employee is wasting almost an hour merely searching contract documents in your storage room. This is a classic scenario of ‘productivity leakage,’ a scenario that can be best avoided with the help of CMS. With CMS, searching for contracts even amid the maze of documents is an effortless thing. One can easily search for documents based on date, year, or any important keywords associated with your business.
Safe & secure:
Today almost all CMS are enabled with encryption technology and hence it protects all the important contracts by multi-layered passwords. As a result, startups don’t have to worry about the security of their documents. CLMS’s inherent protection feature always ensures the full safety and security of all your contracts against sinister hackers.
Collaborative:
With CMS sharing and making urgent changes in contracts is just as easy since it is very much a collaborative friendly tool. CMS not only allows you to share contracts with any third party but also permits the latter in making changes in the live document.
Conclusion:
If you want your startup to increase productivity contract management software happens to be one such solution. CMS is not only a time saver but also helps startups in channelizing their energy into more important things. CMS helps startups in running a fully legally compliant business, which is critical for the long-term sustainability of any startup.
