Small print, big impact: Why SMEs can’t afford to miss the details
Just as avoiding regular dental check-ups can lead to painful consequences, ignoring the small print in legal agreements can cost businesses more than they bargain for.
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Running a small business in South Africa has never been easy and with economic pressures ranging from inflation to rising operational costs, every decision matters.
For many small and medium enterprises (SMEs), overlooked details in contracts can be the difference between financial stability and an unexpected setback. Just as avoiding regular dental check-ups can lead to painful consequences, ignoring the small print in legal agreements can cost businesses more than they bargain for.
The fine print is often hidden, technical, and time-consuming to review, but neglecting it may result in serious financial or legal complications.
“Contracts are not just formalities, they are the foundation of trust and accountability in business,” Greer Penzhorn, Head of Legal at SME services provider Lula said.
“SME owners often underestimate how costly it can be to ignore or misunderstand the details of a contract, whether it’s with suppliers, clients, or employees. Reading and understanding the small print is essential to protecting your business.”
He shared some pointers for SME’s to tackle the fine print with confidence.
Five Smart small print tips for SMEs:
- Ask questions and get clarity in writing. Don’t be afraid to push back on vague clauses and ensure everything discussed is confirmed over email or in writing.
- Avoid handshake agreements. Always formalise terms in writing, even if you’ve worked with the partner before. Simple, clear contracts are best.
- Don’t just skim – understand. Make sure you comprehend the implications of each clause before signing. Courts will uphold the written agreement, not verbal promises.
- Negotiate with confidence. You don’t have to accept every term as-is. Push for conditions that protect your business interests.
- Take your time. If pressured to sign quickly, pause. A rushed agreement often hides risks that could cost you later.
If in doubt, Penzhorn advised to invest in professional guidance.
“Spending money upfront on a legal review is almost always cheaper than dealing with disputes, hidden costs, or legal claims down the line,” he says. Ultimately, paying close attention to the small print is about empowerment. It allows SMEs to protect revenue, avoid unnecessary risks, and strengthen their role in South Africa’s economy.
“The small print may seem tedious, but when you take control of it, you protect your business and position it to thrive,” he added.
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