Five Tips when Negotiating A Business Contract
Negotiating Business Contracts can be inspiring; the prospect of embarking on a new project, that you are getting financial gain from, can give one quite the head rush. However, with every silver lining, there is a cloud. There can be many loopholes when negotiating and signing a contract. Many people miss them and end up short-selling themselves. You might need a contract if you are looking to get contracting jobs or if you are signing on a new customer, plan to appoint a contractor accountant if you are looking to do a contract job, they can help you set up properly. This article will be a quick guide on some steps to take before and during the negotiation of a contract. Especially for business people starting up or expanding a business.
- Take Your Time.
As a business owner, you need to take your time to understand the contract and all its clauses fully. The right partner will give you a specified amount of time, that will be enough for you to peruse over it and grasp everything it entails. Reviewing in detail will help you know precisely what you will agree to, without missing any details. Ask your lawyer to look at concerning clauses, your accountant can investigate any financial obligations or requirements.
- Get Professional Assistance.
In as much as you are well-versed in the business world, you might want to consider getting some third-party help, and this is where lawyers and contract accountants come in. A lawyer will explain to you all the legal jargon used in the contract, and what it will mean to you. They will also help you draft up the terms to replace those you feel might be disadvantageous to you. You could also get help from more experienced individuals in your field since they were also once in your shoes and might be a more cost-friendly option, it is better to spend some money upfront and cover yourself rather than taking a risk as the cost you will incur to fix the damage of a bad deal will be much more. Hiring a lawyer to sue for breach of contract, and all the other legal expenses will leave a significantly more significant dent in your pocket. Speak to a good accounting firm and see how much the financial obligations for breaking a contract can be and how they can assist in creating a scenario plan if a payment was ever required. The free legal helpline offered by Clear House Accountants can help you get free advice about legal matters which you might be concerned about.
- Calculate What You Stand to Gain, Is It Worth It?
Since you are in this for business, you also need to make a decent profit from whatever deal you are negotiating. You could call in an accountant to help you calculate what you stand to gain, and whether it is worth it. If not, you could state to your potential partner what changes you would like to make for you to both be satisfied at the end of it. In calculating your gain, you should know how much your time and skill is worth, then look at what the other party has to gain from it. A business accountant can help you break down these values. Always make sure your payment terms, penalties for non-payment and other specific matters relating to money are covered to avoid future arguments.
- Be Reasonable with Your Requests.
In as much as you want to make a profit and advance your business or career, it is crucial for you to be reasonable in your demands. Do not get greedy, or you might miss an excellent opportunity. Make sure your requests are within the capabilities of the other party and do not burden them too much. Some examples of unreasonable demands include; Not considering the safety of the other party, expecting a much larger cut than what you deserve and expecting unrealistic results — hoping that the other party will put in unreasonable hours, not respecting their time and giving unreasonable time limits are other reasons which might put off the other party from working with you. You can also make things worse by asking them to take on tasks outside of their field of expertise.
- Communicate At Every Step.
Communication is an essential aspect in almost every part of our lives, and more so in business and signing deals. If you do not understand something, be sure to ask. Make that call, send that email, and get full explanations on all your questions, review key points with your Business Accountant. This also ties with the point of seeking assistance from third parties. Do not be afraid of asking away. Something else also worth mentioning is that this will not be the only contract to come your way. There will be many more, so if you feel that the other party is being dodgy or suspicious, gracefully walk out. Also, seize any excellent opportunities that come your way. All the best in your future business dealings!
Clear House Accountants are specialist Accountants in London who have experience working with businesses of all shapes and sizes. We advise businesses on all matters business and use our connections and knowledge to point them in the right direction.
You might also want to read: