Six Fixable Contract Mistakes Small Businesses Make

In 2021, a small marketing agency unknowingly paid $1,200 a month for a software platform they hadn’t used in over a year. It all stemmed from a sneaky auto-renewal clause buried in their original contract. With no system in place to track it, the wasted dollars kept adding up. By the time they caught it, the company was out nearly $15,000. Sound familiar? Executive research and advisory firm Gartner, estimates that 30% of SaaS spend goes toward unused licenses and features.

Contract mistakes like this are more common than most business owners would like to admit—and they’re not just expensive, they’re avoidable. Whether you’re juggling software subscriptions, vendor agreements, or service contracts, overlooking the details can quietly disintegrate your bottom line. 

Here are six of the most common (and fixable) contract mistakes small businesses make—and how to avoid them. 

1. Letting Auto-Renewals Run the Show 

Many contracts include auto-renew clauses that quietly roll agreements into a new term unless canceled in advance—sometimes with as little as 30 days’ notice. If you’re not tracking those dates, you’re locked in whether you like it or not. 

Fix it: You need a contract management platform that provides you with reminders well in advance of the expiration or renewal dates so you have time to opt out or renegotiate.  

2. Not Reading the Fine Print (All of It) 

Reviewing contracts can be an arduous process. Contracts are often long, and legalese is painful. But skipping the details can mean missing hidden fees, restrictive clauses, or renewal traps. 

Fix it: Always read the full agreement. Better yet, have a legal advisor review and high-stakes contracts. Be sure to carefully input the data into your contract management software to stay a step ahead throughout the term of the contract.  

3. Failing to Negotiate Terms 

Too many small businesses accept vendor terms at face value. However, many clauses—like payment terms, service level agreements, or early termination fees—are negotiable.  

Fix it: Make sure you have the right contract management system in place so you can set reminders that allow you enough time before renewal dates to renegotiate the contract. Then, be sure to ask questions, push back, and don’t assume the first draft is final. 

4. Storing Contracts in 17 Different Places 

One contract in your inbox. Another is on a former employee’s desktop. A third? Who knows. Scattered storage leads to missed deadlines and SaaS overspending,  

Fix it: Centralize all contracts in a single location that’s searchable, secure, and easy to manage. 

5. Failing to Properly Train Your Team on the System, Process, and Responsibilities 

Without a proper people, process and platform in place to manage your contracts, subscriptions, and spend, chaos ensues.  

Fix it: Empower your team! Make sure every applicable team member has proper access to your contract management platform and is well trained. They should understand their responsibilities in the contract process and know the importance of compliance and precise documentation. 

6. Not Using the Right Contract Management Platform 

This one is a game-changer. Many small businesses are still tracking contracts with spreadsheets, email folders, or nothing at all. It is a recipe for missed renewals, SaaS overspend, and compliance risk. 

Fix it: Use a contract management platform that’s built for your industry. BetterTracker helps you centralize all your contracts, track renewals in real-time, eliminate waste, and gain full visibility into your commitments. With BetterTracker, small businesses can finally manage contracts with the clarity, confidence, and control they’ve been missing. 

Contract mistakes aren’t just paperwork problems, they’re profit problems. Thankfully, these common mistakes, and plenty of others, are fixable. With the right tools and a little strategy, you can get ahead of the fine print and stop losing money to missed dates, forgotten clauses, and outdated systems. 

Take control of your contracts. Explore BetterTracker today and see how much smoother your business can run. See for yourself by scheduling a free demonstration.  

BetterTracker helps finance, IT, and operations teams take control of contracts, subscriptions, and technology spend. By centralizing renewals, eliminating tech sprawl, and providing real-time visibility, BetterTracker empowers businesses to simplify compliance, reduce costs, and make smarter decisions. 

¹Source: https://www.npifinancial.com/blog/understanding-saas-spend-management-best-practices-strategies