Business negotiations - how to properly conduct them?

Service Business

Establishing the terms of cooperation before signing a contract is a process that every entrepreneur goes through sooner or later. Because business negotiations are bread and butter. How to negotiate in everyday business? We suggest in this article.

Contractor selected - time for negotiations

There are industries where it is virtually impossible to negotiate contracts. The terms of cooperation are imposed in advance and presented to the entrepreneur - he can decide on them or not, with no room for modification. Of course, we can always try to negotiate, but if our contractor is a much larger company that we cannot offer, for example, the implementation of regular orders with high budgets, it will be an extremely difficult task.

The most favorable situation is when two contractors of a similar size meet, e.g. two small enterprises. They have similar business perspectives and the scale of operation, so it is much easier for them to establish the conditions that allow them to achieve a win-win situation, i.e. a win-win situation, which is beneficial for both companies.

Business negotiations - the basics

Regardless of whether the entrepreneur starts negotiations with a company of a similar size or with a much larger contractor, the basis is proper preparation for the meeting. It is worth considering what we care most about, when we will be able to consider the negotiations as a complete success, but also what we can give up, what is our minimum goal. Likewise, one has to think about the other side: when can he make concessions, and to what extent it will not be possible for him.

Each business meeting should take place in a pleasant atmosphere, because then it is easier to establish the conditions on which both parties care. Kindness and a smile can be more effective than many arguments. Take some time to negotiate - the frustration of the upcoming deadlines will not help determine the best terms for us. The ability to maintain an emotional distance has a huge impact on considering all options carefully and determining the final shape of the contract.

Every entrepreneur should remember that negotiation is a process aimed at reaching a compromise - sticking to one's conditions without concessions can lead to clashes, a tense atmosphere and the breakdown of negotiations. It is worth recalculating whether the search for a new contractor will cost us more than meeting the expectations of the other party and agreeing to the offer resulting from the negotiation process.

Outcome of the negotiations: signing the contract

Reaching an agreement after negotiations leads to the signing of a trade agreement according to the agreed conditions. When the process of reaching a compromise was long and arduous, it is often necessary to prepare such an agreement from scratch, because it does not fit within the standard signed.

When creating a new contract, it is worth having it checked by a law firm, which will indicate any inaccuracies or errors of a legal nature, because illegal provisions have no force (even if both parties agree to them). It is good to know which side is in charge of drafting the contract in order to avoid a "lawyer war" representing each of the contractors. The best solution is for one of them to create a contract, with the option to amend it at the request of the other party.