Kentucky business owners know that one of the keys to a successful business is having the right contracts in place. Contracts with your suppliers, manufactures and customers are vital to ensuring your business remains healthy and profitable.
Negotiating contracts can be one of the most difficult parts of running a business or corporation. The negotiation process is often fraught with stress and uncertainty, as striking the right balance between securing a contract in your best interest, while maintaining an amicable relationship with the other party to the contract, can be challenging.
Remember your end game
At the beginning of the negotiation process, outline the main goals you wish to achieve with the contract. Once the negotiations get underway, it is easy to get bogged down in the details. Having a big picture outline to refer to throughout the negotiation process will help you take a step back when necessary and focus on what’s important.
Lack of communication with the other side is one of the most common things to frustrate contract negotiations. If you do not understand the other sides proposal, are wary of their intentions, or need clarification on something, a quick phone call or email can clear things up immediately, while not making that effort can stall the process and lead to confusion and misunderstandings.
Go slow and be patient
Most importantly, do not sign a contract quickly. Negotiations are meant to take time, but as the negotiation process goes on, both parties may get frustrated or impatient and be tempted to simply sign the contract to be done with it and move on.
This can lead to more problems and legal troubles in the future, creating much more of a headache than the negotiation process itself. Be patient and reassess the importance of the terms you are stuck on. If you decide they are minor and not worth holding up the contract, signing the contract may be the best decision, but don’t do it hastily.
Having someone review the contract before signing is highly recommended. They may see errors or omissions that you may not catch, if you’ve spent a lot of time drafting, reviewing and re-reviewing during the negotiation process. A knowledgeable and experienced attorney with your business goals in mind is a valuable resource to have during this time.