Contracts are one of the most important legal foundations of your business.
No business can or should operate without appropriate written contracts. Like the old adage says – a verbal contract is only as good as the paper it’s written on.
As a business owner, you use contracts to protect yourself, clearly outline the terms of your agreement for work with a client or contractor, manage risks to your business and personal finances, and meet expected compliance and regulations.
It’s no exaggeration to say that your business cannot function, grow, or scale without solid contracts in place.
But with all the options out there – DIY, contract templates, fill-in-the-blank templates, ChatGPT contracts – custom contracts, written for your business by a business attorney, are still the gold standard.
And today we’re going to look at 5 of the benefits of using a custom business contract.
Benefit #1: You get a business contract written by someone with specific legal expertise
Business attorneys are experts.
We know the ins and outs of how the law applies to and affects you and your clients, so we can create a contract that not only meets the current legal standard, but also takes into account any nuances or quirks that exist in the business space.
Any type of attorney can technically create an “attorney-approved” contract, but working with a business attorney means you have someone with the specific knowledge and expertise you need to support your business.
Benefit #2: A custom business contract is tailored to your business
The whole point of a custom contract is to make sure it fits your business, not just any business.
Depending on the structure of your business, the type of clients you work with, the projects or services you offer, and the manner in which you charge – your contract really shouldn’t look like anyone else’s.
Investing in a custom contract is the only way to ensure specific issues and considerations are built into your contract, taking into account your individual risk tolerance.
We have clients who have experienced specific challenges in the past, and when we write their contracts, we can better protect them from those specific challenges. This can provide a level of peace and security that’s impossible to gain without a custom contract in place.
Benefit #3: Custom contracts are clear and precise
Nothing is less helpful than an ambiguous, unclear, or confusing contract. (Except for not having a contract at all!)
A custom contract clearly lays out, defines, and explains every clause, so there can be no question about the intent or effect of the terms.
The point of a contract is not to confuse or mislead your client or contractor. Prioritizing custom contracts benefits you and your client because you each understand exactly what you’re agreeing to and what is expected of each party.
This clarity and precision is especially helpful if you are required to pursue legal action or resolve a dispute.
When you can highlight the clear terms and clauses in your contract, it’s much easier to get what you are entitled to.
Benefit #4: A custom business contract anticipates future issues
You don’t want to wait until you have an issue or problem to bring in legal support. At that point, it’s too late.
Business attorneys have experience in practically any issue that can pop up, so they create contracts that are designed to anticipate future issues and prevent them from happening. We think about what happens next – if someone were to breach your contract, for example – and write a contract that will be upheld in “worst case” scenarios.
Issues a custom contract can protect you from include:
Changes in laws or policies
Business growth
Change in volume of work
Advances in technology
Economic changes
Unanticipated major events
IP issues
Change of control and ownership
Unexpected need to exit the contractual relationship
Non-competes
Increased liability
Starting with a custom contract can save you a number of headaches, challenges, or risky situations down the road.
Benefit #5: Custom contracts are more professional
Whether you’re just getting your business off the ground, in a growth phase, or leaning into intentional scaling – it’s crucial that you look professional and reliable at all times.
Sharing a custom contract sets the stage for a respectful, professional working relationship and shows your clients that you take your work seriously.
Looking like a professional is one of the most important foundations of a successful, sustainable business.
If you work with corporate clients who are used to custom contracts, you may lose work or receive serious pushback if you don’t have your own professionally drafted contract.
A custom business contract saves you time and money
All of the benefits of a custom contract add up to one thing: savings.
With a custom contract, you save the time you would have to spend negotiating terms, explaining expectations, mediating disagreements, and taking legal action.
And while you pay a business attorney upfront for the contract preparation, you’re positioned to save a lot more by avoiding unpaid fees, legal disputes, and expensive contract revisions after the fact.
Custom contracts may be more affordable than you think, and they are absolutely worth the investment.
A custom contract gives your business the solid legal foundation you need to build long-term success and eventually scale to new heights.
Consider a custom contract a gift to your business that keeps on giving!
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