08 - How Big Companies Use Contracts for Everything, and Why You Should Too
When you think about legal strategy, it’s easy to imagine it’s something only big corporations like Apple or Starbucks need. But here’s the truth:
Every successful company uses contracts as a core part of how they operate, protect themselves, and grow.
I know this because I used to work on the legal team of a large company. Believe me when I say, I know their playbook. It’s not just about having a lawyer on speed dial, it’s about thinking strategically about legal from day one.
When I worked on the legal team of a large company, I saw firsthand how much strategy goes into every contract decision. Nothing was left to chance, every agreement, no matter how small, was aligned with bigger business goals. Legal wasn’t just called in when something went wrong; it was part of the planning process from the very beginning. That’s the playbook most small business owners don’t see. The companies you admire aren’t only successful because of great products or smart marketing. They’ve built a legal foundation that supports growth. Strategic legal thinking from day one means fewer surprises, stronger partnerships, and more confidence to scale.
At big companies, the legal team isn’t just reviewing paperwork; they’re in the boardroom helping shape strategy, manage risk, and uncover opportunities. Whether it’s negotiating with regulators, protecting intellectual property, or setting the terms of a new partnership, in-house counsel makes sure every move aligns with the company’s long-term vision. And that’s the real lesson small businesses can borrow: treat legal as a growth partner, not a last-minute checkbox. That shift in mindset is how you start running your business with the same playbook as the big players.
Big Companies Use Contracts to Stay in Control
Let’s start with the basics. Major companies don’t move without a contract. Whether it’s a deal with a supplier, a new hire, a software license, or a content collaboration, it’s all in writing, and it’s all reviewed by legal. No business decision is made without the legal perspective.
Here’s what that looks like in practice at big companies, and what you can take from it:
They standardize their contracts. Big companies rarely start from scratch. They have template agreements for vendors, employees, partnerships, and clients. This keeps their terms consistent and protects them from “forgetting” key clauses.
They negotiate everything. Nothing is “just boilerplate.” Even the smallest supplier agreement gets reviewed, redlined, and adjusted. They treat contracts as a tool to create leverage, not just paperwork.
They build in boundaries. Clauses around payment terms, intellectual property, and termination are clearly spelled out. That way, if things go south, they already know the rules of engagement.
They review before they sign. No manager or department can finalize a deal without legal approval. It slows things down a little, but it prevents costly mistakes.
They use contracts as strategy. It’s not just protection; contracts also set the tone for the relationship. They create clarity, expectations, and long-term stability.
Why so much legal power behind every move? Because contracts aren’t just about protection.
Contracts are leverage.
Contracts are clarity.
Contracts are boundaries.
So What Does That Mean for You as a Business Owner?
You might not have a billion-dollar business, yet. But if you’re building something real, something long-term, then you deserve the same protection and strategic support that big companies rely on every day.
What large companies know, and many small businesses learn the hard way, is that a contract isn’t a formality. It’s your blueprint for how the relationship will work.
Here’s how they use them:
Hiring & Teams: Every employee, freelancer, or contractor relationship starts with a clear agreement about roles, responsibilities, IP, and exit terms.
Client Work: Scope of work, payment terms, timelines, and revisions are all documented to protect both sides.
Collaborations: From brand partnerships to influencer deals, contracts make sure everyone knows what’s expected.
Vendors & Suppliers: Even a basic supplier agreement outlines delivery schedules, pricing, and penalties, nothing is left to chance.
Confidentiality: NDAs ensure sensitive business plans, client data, or creative assets stay private.
Think of a contract as the “instruction manual” for your business relationship. It lays out who is responsible for what, how money will change hands, what happens if deadlines are missed, and what to do if either side wants to walk away. Without that blueprint, you’re relying on assumptions, and assumptions are where misunderstandings and disputes are born. A clear contract gives both sides confidence, because everyone knows the rules of the game before it even starts.
What Happens Without Contracts?
Many entrepreneurs skip contracts because they trust the person, or the deal seems “small.” But this is where the risk multiplies:
You might not get paid in full
You could lose ownership of your content or ideas
The project scope might balloon with no recourse
You might be liable for something you didn’t intend
It’s not about expecting the worst, it’s about planning for the reality of business.
My Philosophy: Contracts Are a Tool for Growth
At Encino Law, I help BC business owners stop thinking of contracts as something you only handle when something goes wrong.
Instead, we treat contracts the way big businesses do, as a proactive, empowering tool that protects what you’re building.
You don’t need a whole team of lawyers. You need one trusted legal partner who knows you, your business, and your goals, and who can help you think ahead.
What This Means for You as a Business Owner
You may not have hundreds of lawyers on payroll (and you don’t need to). But you can borrow the mindset: contracts aren’t red tape, they’re a business tool. A solid, customized agreement can save you stress, protect your cash flow, and give you the confidence to make bigger moves.
The key is to stop treating contracts as a last-minute checkbox and start treating them as part of your growth strategy. When you do, you’re running your business like the big players do, with clarity, leverage, and boundaries that support your success.
Want to Learn How to Review Contracts Like a CEO?
Check out Make Contracts Your Friend: Essentials Every BC Business Owner Should Know
Your crash course in contracts. Built for BC business owners who want clarity and confidence.
All attendees also get my Contract Starter Kit, a practical resource to start putting your learnings into action right away.
