Palm Coast Times

St. Johns County Chamber of Commerce issued the following announcement on February 8.

No matter what happens in business, the contract negotiations process is an important part of it. However, negotiations don't always go well, and it can be surprisingly easy to fall for the counterparty's tricks at some point. One of the most important things you can do to avoid failure in contract negotiations is to have a clear vision of your objectives from the start.  

The Dangers of Not Knowing Your Objectives

Many legal teams go into the negotiations process without knowing their objectives. There are several issues with this.  Lacking a clear vision of goals makes the entire process a guessing game. and you can't weigh counteroffers effectively. You could end up with a financially detrimental deal that affects not only your bottom line but also your company's reputation. 

How to Determine Your Objectives

When determining your objectives, remember the acronym "SMART." SMART stands for specific, measurable, attainable, relevant, and timely. Each of your goals should meet these five simple guidelines. Knowing your minimums per each objective is also essential. 

For example, you can look at a situation where you require a specific price per product for a contract to be profitable. For this example, you could say your objective is to receive a minimum of $1.25 per product. This objective is both specific and measurable. It's relevant to your bottom line and should be attainable since this is your minimum. The timely portion of this objective will be determined through delivery frequency, so it meets all SMART requirements. 

Knowing What You Can Give Up

You won't win every issue brought to the negotiation's table, so it's essential to consider the best alternatives to each term you hope to receive. Some terms will be nonnegotiables. But it's equally important to understand what you can give up to accomplish your primary objectives. For example, you may be willing to compromise on delivery frequency if order amounts are higher. Consider at least one alternative resolution for each of your negotiables. 

Putting It Together

Once you know your minimums, you can present them in a detailed, attractive contract to the counterparty. Making the contract itself look great should be one of your top priorities. Don’t forget to compress PDF? to help with your contract's visual appeal.

Before presenting your contract, ask yourself these questions:

• Is my contract visually appealing?
• Does my contract answer all potential questions the counterparty may have?
• Is my contract detailed?
• Is my contract organized and easy to follow?

If you answer yes to each of these questions, feel confident in your contract. If you answer no to any of these questions, consider how you could alter the agreement to make it better. 

The way you orally present the contract also matters. Aim to be confident, friendly, and well-spoken during your initial presentation. 

Know Your Objectives To Succeed in Contract Negotiations

Always remember that having a clear vision of your objectives will help you succeed during contract negotiations.

Join your local chamber of commerce for more valuable business resources and networking opportunities in your area. 

Original source can be found here.