6 Hidden Costs of a Paper-Based Business Licensing Process

Running a state agency is not only a lot of work; it can be expensive. These are taxpayers’ dollars you’re working with, and you want to make sure you’re using them efficiently. At an initial glance, a paper-based licensing process seems cheap. However, take a closer look, and you’ll find a whole litany of hidden costs.

Maybe you’ve recognized this and have taken steps to make sure you don’t have a paper-based licensing process. Instead, you have a “database” or a “system” where you record your licensing, inspections, complaints, and other decisions and data. While these “databases” do provide some efficiency, they are still very much paper-based processes. If your licensees send you paper packets, your inspectors need clipboards with checklists, or you still have hanging paper files, you have a manual process.

Read on to learn how these systems may be draining your money.


As an agency, you want to make sure your staff are getting the most work done as efficiently as possible. Having teams of people chasing and shuffling paper is inherently costlier and slower than an automated, paperless business licensing solution that keeps things moving and everyone on track.


Storing paper records is not only a pain, it’s also inefficient. If you keep paper onsite, you are paying for real estate you wouldn’t otherwise need or could be more productively using as workspace. If you use a records management company, you not only pay to store your records but also when you access them. Having your own, fully-automated system not only removes the need to physically store paper records but does away with the need to pay someone else to do it for you. Not only that, but you can access those records at the click of a button without having to send someone to look for them.

Overall inefficiency

It’s difficult to find a system that works, and it might seem less expensive to just stick with what you have, whether it be all paper or partially automated (like a database). But consider all the time and money you would save by having these activities automated or eliminated using an intelligent online business licensing platform that keeps things moving and everyone on track: collecting report data, detecting application errors, following up with licensees and applicants, fielding status calls, reworking applications, packing and mailing envelopes, filing documents, and hunting for misplaced files.

Shared Overhead

Consider the savings if you could eliminate a mailroom, minimize printer usage and maintenance, and eliminate some real estate.


The last thing you need is legal trouble. Where checks and balances are not enforced by a platform with built-in regulatory expertise, there will likely be inconsistencies, each one inviting an unsavory lawsuit or administrative hearing.

Paper and Mailing

When you factor in all the notices, reminders, deficiencies, and return-due-to-incomplete packages you mail over a year, the costs add up.

The licensing platform you need is one that can solve these problems with total process and workflow automation that builds in checks, balances, and regulatory expertise.

If you’d like to learn more about how Gov2Biz can help your agency automate, modernize, and streamline your licensing and enforcement processes, give us a call. We’d be happy to answer any questions you have.