- The Basics of Contract Negotiations for Small Businesses
- August 3, 2016
- Law Firm: The Posey Law Firm P.C. - Austin Office
Anticipate the Other Side will Have a Lawyer
It doesn't matter if you’re a small business entering into a contract with another small business. It's always best to assume the other side is already working with a lawyer to structure the contract in the manner most favorable to them. You could be entering into a very uneven negotiation if the other side has a lawyer working on their behalf and you don’t. For instance, you need to be careful about all of the language in the contract when the other side is working with a lawyer. That being said, it’s vital to work with your own lawyer to ensure you’re interested are adequately protected.
It's Critical to Have Someone Objective Do Your Negotiating
It’s critical, as a small business owner, to have someone objective negotiating on your behalf. As many attorneys and business owners can attest, it’s easy to get caught up in the emotions of contract negotiation, or for competitive individuals to end up focusing on the desire to “win” the negotiation. Employing an objective party to handle your negotiating can keep you from making a poor decision. The job of that objective party is to focus on your real needs by making sure that you're getting a contract that really works for you. Having a third party involved can also avoid tipping your hand - if you’re negotiating directly, you might accidentally use language or even a tone of voice that reveals your ultimate strategy. When a third party is doing your negotiating you don’t have to worry about inadvertently revealing your plan. This can be the difference between securing a "good" deal and a "great" deal!
Make Sure the Contract is Structured Properly
It's a mistake that many small business owners make when negotiating a contract. It's the thinking your getting something in a deal that your actually not receiving. Before you sign on the proverbial "dotted line", it’s important to have an attorney on your side to ensure the contract is structured properly. Even if the other party has made a good faith effort to create a mutually-advantageous contract, it could cause problems if it’s missing certain clauses or key language to protect you and your business.
Don't make a mistake by missing one of these fundamental contract tactics. Call Jake Posey or one of the attorneys at The Posey Law Firm, PC for advice and counseling before your next small business contract negotiation.