Planning For A Shorter Future
The baby boom generation continues to age. As a result many businesses owned by this generation will either change ownership or close down over the next five year period. Here is one major housekeeping tip for those that may be in this situation.
Check your company’s contract obligations on anything with a term exceeding one year.
As an example I know a company which decided to refocus its objectives. As a result the company downsizes significantly and finds that it no longer needs services that were once central in servicing its clients. For them both credit and copier services were no longer needed. These services were on multiyear contracts and although the company had long and cordial relationships with its vendors neither vendor was willing to negotiate for an early termination. The end result was that the company had to pay for services that were no longer wanted nor needed.
Two lessons come to mind. First check termination dates and requirements and make sure you understand what is needed and when. Next, unless you are certain a service is now and will continue to be required keep the contract term as short and flexible as possible.