Effective data management can assist you to reduce and manage the legal risks in your business. Leading to smoother business operations and, if you are thinking of selling, a higher sale price.
Do you sometimes try to locate an agreement and feel like you are looking for a needle in a haystack? You are not alone. Now more than ever, businesses are faced with organising and sorting huge amounts of information. Poor documentation methods and lack of effective processing can create an array of issues; including reduced visibility of risks, higher overhead costs and even legal issues.
There are many sources of business data, including your company records, contracts, key correspondence, payment records, HR records, merchandise purchase and sale records and intellectual property.
As an example, by properly retaining your contracts and any variations (including those that are done by email correspondence) can assist you in the event of a contractual dispute down the track.
Businesses are required by law to maintain certain records, such as those relating to employees and the company itself.
Maintaining good records of your merchandise, sale price and various offers can assist you when planning your sales and in ensuring that you comply with the ACCC guidelines on was/is and comparative pricing. If the ACCC asked you to verify your “was” price for a product you sold 6 months ago would you be able to?
Having the ability to quickly and easily locate relevant data can assist in reducing the risks that you face in your business.
If you are interested in selling your business, good record-keeping and proper documentation will make the due diligence process smoother and faster and may even net you a higher sale price.
On a practical level, good data management can provide your business with higher levels of visibility, greater understanding of money flow and the analytical information needed to establish a best practice approach. For example, internet dating website eHarmony recently saved $5 million annually, by identifying and severing unwanted costs from their business model. Prior to adopting a solid data management platform, these costs were hidden due to the lack of organised information and business visibility.
Ultimately, the goal of successful data management is to:
- reduce and identify the risks that may arise in your business;
- increase the value of your business; and
- allow you to run your business smoothly and efficiently.
Our Legal Health Check can assist you to identify any gaps in your data management as well as risks that may arise in your business.