With any business, creating, sending out and getting contracts signed is a necessary process. At the beginning, many businesses might avoid contracts altogether, relying on trust and the fact “they’re good guys” as a basis of working together.
In some instances this is sufficient, but if your business is going for funding, or you’re looking to scale, this could open your business up to many problems. These problems might not only be limited to legal issues, but it could also raise concerns and questions from potential investors about your other business practices.
So we’re going to look at some of the benefits of contract automation for your business if you’re currently going through an investment round or planning on going for funding in the near future.
1. Compliance and control
Have you got a growing sales team? Are people manually editing contract templates? Do you wish you had more oversight? This is a common problem for growing businesses, so you’re not alone.
Document automation gives you back that control. Audit logs track everything that employees do, meaning you know exactly what is being created and when it is being sent.
If you can show your potential investors that you’ve got your compliance covered, you will build their trust. They want to know you’ve got your key processes under control and will, therefore, be more likely to invest.
2. Traction and proof of customers
Traction – the thing that every investor wants to see in your business. Are you winning new customers, are they locked in, can you justify your forecasts? Having a word of mouth agreement is one thing, letters of intention another. The winning ticket, however, is a legally signed contract stating exactly what you will do and how much they will pay you for it.
Investors want proof, and proof doesn’t come in a much better form than a signed contract. If you can lay out a plethora of signed contracts, you’re sure to convince the investors that they’re onto a winner by investing.
3. Ability to scale
Scaling a business is difficult and can only be achieved if you have the right processes all working in unison. One of these processes is creating and getting your contracts signed. Imagine rather than taking 30+ minutes to create, send and sign your contracts, doing it in 30 seconds. Now, spend the remaining 29.5 minutes on high value-adding tasks, such as winning more customers.
Getting your contract processes frictionless early on will set your businesses up to scale and impress your investors.
4. Legal position
Every business needs to protect itself when undertaking its operations. A lot of this protection comes in the form of the legal documents it signs with its customers. Therefore, getting these right from the start is incredibly important.
Investors want to have complete faith that the business isn’t open to unnecessary risks. If you can show your potential investors all of your contracts in an easy to understand and comprehensive manner, they’ll be much more likely to invest. Don’t give your investors a reason to say no with contracts stored in different places in different formats.
These are just a few reasons how contract automation can help your business get funding by helping to convince your potential investors. Overall, investors want to see that you are on top of things, have good processes and are not opening yourself to any unnecessary risks.
You need to take a holistic view when building trust with your investors and good contract processes are only part of this. However, with contract automation becoming more and more accessible it isn’t something that should be overlooked. With Doc2’s simple onboarding, it could be an easy win and help you secure your next round of funding.
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