Business licensing is more than just regulating and ensuring compliance — it’s a vitally important part of how a municipality builds public trust, supports local revenue, and engages citizens.
Still, many cities struggle with outdated processes and common pitfalls that can all too quickly turn this piece of government oversight into a bottleneck.
The top five mistakes that municipalities make can become a major headache for everyone involved. Fortunately, modern business licensing software helps local governments avoid these obstacles and keep things running smoothly.
1. Relying on Paper or PDF-Based Processes
Relying on paper files or scattered PDFs and documents to oversee business licensing is a recipe for problems in any-sized community.
If the processes are outdated or disconnected, municipalities are going to suffer from:
- Long approval times
- Errors
- Increased in-person visits
- Missing documents
The fix? Moving to digital applications that require completion before being submitted, with mandatory fields and smart validations built right in.
Applicants benefit from the ease and convenience of using an online licensing system to register or renew their licenses. At the same time, municipal workers have an organized, streamlined workspace where all decisions and approvals are available in one place.
2. No Renewal or Expiration Management
If staff is stuck manually tracking expiration dates — or doesn’t track them at all — problems are bound to happen, including:
- Revenue loss
- High rates of non-compliance
- Upset business owners
- Confused citizens
Adopting a modern system for managing licensing, which automates renewal reminders and simplifies the process with easy-to-use digital tracking, can prevent these issues.
Cloudpermit’s business licensing software is built with this workflow in mind, offering comprehensive renewal management and notification tools that keep everyone informed. Rather than missing a deadline, business owners will know exactly what they need to do to remain compliant — and staff can reduce their administrative work in the process.
3. Not Offering Online Payment Options
Today’s business owners and operators want to follow the rules set by their local governments — but they also expect convenient, practical ways of keeping their necessary licenses in order.
If a city requires businesses to keep current by paying in person or by check, they shouldn’t be surprised when they instead encounter:
- Lengthy delays
- Dropped applications
- Frustrated business owners
Offering secure online payments through an online licensing platform can keep everyone compliant by making the process easier. The right business licensing software and integrations with online payment providers make paying for a new or renewed license as simple as a few clicks on a computer or taps on a mobile phone or tablet — and it can be done 24/7, not just during regular office hours.
4. Poor Communication and Status Transparency
Poor communication can slow down the entire process, especially when applicants need to call or email staff for updates, and staff have to spend time manually responding.
The right business licensing software can fix this communication problem with:
- Real-time status updates
- Automated notifications every step of the way
- Built-in messaging tools
Cloudpermit offers simplified ways to keep everyone in the loop, including live updates and automatic email notifications — no phone calls or back-and-forth email chains necessary.
5. No Centralized License Database
When records are spread across multiple systems or paper files, mistakes and missed deadlines are inevitable.
A centralized platform can bring information into one easy-to-access place, allowing staff to:
- View license status and history
- Manage, filter, and sort documents for multiple licenses
- See a dashboard view for upcoming renewals
- Streamline reporting
With Cloudpermit’s business licensing software, staff can work from a single source of truth with GIS integration and real-time information.
Choose a Better Way Forward
The top five mistakes of business licensing are hard to avoid with outdated workflows:
- Reliance on paper or PDF-based processes
- No management of renewals or expirations
- Lacking online payment options
- Poor communication
- Decentralized license information
The good news is that all these mistakes can be prevented and corrected with new digital tools that streamline and simplify the licensing process, bringing everyone together in one place.
It’s easy to modernize the whole process with Cloudpermit’s business licensing software.
Book a demo with us today to see how we can streamline your municipality’s licensing program.
