3 Tips and A Simple Script To Begin Any Contract Negotiation

My mother happens to be a master baker. I know people talk about their mother’s cooking, but my momma is the truth.  Anyway, one of her specialties is homemade rolls. They are buttery, yeasty balls of perfection, and my 4-yr-old niece discovered their deliciousness this holiday season.

Have you ever played a game with a child, and when you’re done, they say, “again?” Then you do it again only for them to say, “again” another 3, 4 or infinite times. Well, my niece was like that with my mother’s rolls. She asked for them over and over again. Even when she was home sick from school, she described the severity of her condition by explaining, “my tummy hurts AND I don’t even have any rolls.” Clearly, she needed hospitalization.

But you know what she got every time she asked – rolls. Now, my mother rarely visits without bringing them to her house or having a plan to make rolls with my niece when she is there. My niece’s commitment illustrates a valuable lesson about negotiations and contracts.

A written contract simply defines the rights and responsibilities of the parties in a clear way. To get there, the parties negotiate or exchanges ideas as to what those rights and responsibilities should be.

The process doesn’t have to be complicated or adversarial. But like my niece, you must ask to get what you want. This is not the time to be shy. But it is the time to show your professionalism by honoring the mission and goals of your business in your agreement. To begin this process, remember these 4 simple tips.

Tip 1: Know What You Want – Before you can negotiate, you need to know your most optimal result and your walk-away point. By doing so, you firmly establish your goals in your mind and leave room for give and take with your potential business partner. Remember to consider all aspects of the agreement not just the money. For instance, if final approval for all design decisions is important to you, make that clear from the beginning.

Tip 2: Strive for the Win-Win – The goal in contract negotiation should be to create an environment where both sides feel like they are benefitting from the agreement. Going into any agreement trying to “get over” is never a good idea for you or your business. Remember that the other person can potentially refer new clients, give testimonials, or become a long-term business partner. Trying to “get over” or beat the other party leaves no room for those possibilities.

Tip 3: Tell Them What You Want – If you want rolls, ask for rolls. Don’t say you’ll take whole wheat toast instead if that’s not true. If this is a good partner for you, stating what you want will only serve to strengthen the relationship. Something simple like this should work:

I’m really looking forward to potentially working with you on this project. I admire your work and think a collaboration for this venture will be fantastic. Before we begin, let’s discuss the details and draft an agreement so we are clear on our expectations from the very beginning. For me, there are some important aspects of any arrangement that must be understood before I work with anyone. They include…”

Tip 4: Trust Your Discernment – If something feels off, it probably is. So if you are feeling uneasy about the business or person you are entering into an agreement with, don’t do it. Trust your discernment. You know your style, likes/dislikes, goals, and walk away points. If you want the best results, find a business relationship that works for you and forget the relationships don’t.

Have any tips of your own or stories to share? Let me know in the comments below. I’d love to hear your perspective.