Little Errors Turn Into Expensive Lessons 

It’s the small things that can end up costing the most, and that’s things like missing a signature somewhere, or having a contract that’s badly written, or perhaps you’ve got a returns policy that you can’t actually use when it comes down to it because no one checked it over. These tiny things might seem quite harmless at first, but they can definitely turn into massive headaches later on, and when a business is growing, it’s actually easier to ignore those details in the first place, so there’s more chance of making a mistake because there’s always something else that needs attention. 

Not Understanding Processes Gets Costly

There’s a whole world of legal terminology and procedure that businesses owners aren’t taught and probably never even think about, but those gaps in knowledge can get expensive, and even the basics catch people out. You’d be surprised how many leaders couldn’t confidently explain what happens during legal discovery or define deposition when dealing with disputes. Of course, that’s not a criticism, after all no one starts a business because they want to be a lawyer on the side, do they? 

But the point is that misunderstanding these processes can lead to delays, confusion, extra billable hours, and sometimes decisions that may not have been quite so informed as they needed to be… so the lack of clarity can end up costing more than the issue itself. 

Poor Documentation Is An Expensive Bad Habit 

If you’ve ever tried to find a missing policy, unsigned contract, or the final (final) version of something, you already know how painful poor documentation can be. The fact is that businesses lose a lot of money when they can’t prove something happened, and having all your paperwork in order stops that from happening. 

For example, if a client disputes something, you need a paper trail, and if an employee claims they’ve been given the wrong information, you need records. Or if a partner changes the terms of a contact, you need the original agreement. But when documentation isn’t there or isn’t complete, you lose time and legal costs start to rise. 

Compliance Costs Less Than Non-Compliance 

No one loves compliance (or hardly anyone, anyway) because it’s slow and boring - and there are loads of details you need to get right. But the reality is that ignoring it is where the real financial problem can begin, so it’s not a wise idea. 

If you’ve not got your compliance in place, you could be given fines, there might be investigations, there’ll definitely be delays, and your reputation could be damaged too, and all of that’s going to be a problem when it comes to your bottom line. And when you know all that, compliance becomes much less of a chore.