A second way a written contract can keep business growth on track is by creating certainty, stability, and predictability. Business growth runs on efficiency. Profit margins exist because the costs of operation are less than the revenue being generated. It is often hard enough for businesses to create profit margins when things are running smoothly. Errors, uncertainty, instability, and confusion in relationships with customers cost a business time and money and will reduce its margins. Written contracts minimize the risk of variance, streamline the relational expectations between the business and customers, and reduce the cost of potential misunderstandings, disagreements, and confusion.
February 9, 2014