How To Negotiate A Business Contract Successfully
When the pressure kicks in and business success is vital, getting the right deal is central to the ongoing survival of the firm. Put simply you HAVE to get this right.
So, what practical steps can you take to avoid the obvious pitfalls and get the best deal possible?
- Understand the full picture.Where exactly is your organisation now and why is this contract important? Are all parts of the firm on-board with the content of the contract, is anyone against it (and why?) and will the whole organisation be on your shoulder willing you on?
- Understand the bias that your different departments might have. Who stands to gain most from the deal and who could be negative towards its implementation? Uncover why this is the case, win them around, or sell the deal to them, BEFORE agreeing anything!
- Avoid reckless outsourcing. If you know that some of the contract content cannot be delivered in-house ALWAYS make sure that any external partners can be relied upon to the extent that they could effectively be an internal department that you trust and value. If you cannot be sure of this avoid future problems and say Goodbye now!
- Be aware of your own negotiation style – and possible limitations! If you are good at the broad picture but less comfortable with the minutiae bring someone along who is! Contract devilment lies in the detail, not in the broad, brush-stroke agreements.
- Be realistic. We all want a good deal but winning strongly at the expense of the other party is never a good outcome and if the deal looks too good to be true IT ALWAYS IS!
- Always look for synergies. Where is the common ground and shared values and cultures. What are the historical ties between both parties and what does this tell you?
- Be very wary of getting a quick deal. Quick contracting will always lead to heartache later along the line as details are left out, agreements are not solidly defined and confusion reigns.
As with all things important in life sound preparation brings good results!
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