Business Topics: Five Tips for Negotiating Contracts

Business topics

Whether you are a new or seasoned business owner, there are many skills that come in handy and may culminate in the key to your success. Creativity in coming up with a great business idea that will bring customers in is key, along with the ability to market your wares and communicate effectively with everyone, from customers to employees, partners, and vendors. Once the money is rolling in, good financial management and leadership skills are crucial to staying afloat. Don’t ever underestimate the importance of negotiation in the world of business though either. And while you may not be cutting deals with billionaire business moguls around the globe, you may still find yourself working with your business attorney to create and approve contracts you have been asked to sign.

Here are five tips for negotiating contracts as you navigate your way through the business realm:

  1. Research the other side. Know who you are dealing with! This can make all the difference as you have insight and understanding into another individual or company as you enter into a business agreement together.
  2. Know what your own priorities are in the deal, and make sure you understand the major points that need to be included for the contract to work for you. Don’t be distracted by peripheral issues. Discuss the pertinent points such as goals or any relevant project scopes, deadlines, finances, and timeframes for any exchange of money.
  3. Learn to excel in the art in the art of compromise, while still getting what you need for your business – there will have to be give and take as you work with others. Try to prepare for what concessions you are willing to give before you get to the negotiating table.
  4. Keep emotion out of the negotiations. This is a business contract, and ultimately, the deal should be black and white. Try to remain relaxed, patient, and even use your sense of humor. Don’t be afraid to speak up and be firm about the goals you are trying to achieve, but if you are running into roadblocks, or everyone at the table is becoming agitated, take a break and use that time to think about the long-term and what it is you are trying to achieve.
  5. Have your business attorney present during contract negotiations to make sure you don’t run into legal trouble later, allowing you to create a contract that is thorough and most importantly, enforceable. Make sure your attorney has reviewed everything and given the green light before you sign any contracts.

Do you have questions about a business contract? Are you in the middle of a business dispute and require experienced representation? Call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com. We will be glad to review your case, answer your questions, and help you move forward with success.

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