Contracts are at the heart of numerous business tasks and decisions. In order for both parties to reach a favorable agreement, they must negotiate to ensure the terms meet their needs. Thorough contract negotiations can also reduce the risk of litigation at a later date.
According to Entrepreneur, there are certain contract missteps to avoid to ensure success during negotiations. Here are a few possible negotiation obstacles and what you can do to overcome them.
Letting desperation guide your decisions
Some contract negotiations are more urgent than others. However, you should never let this urgency drive you to make decisions that ultimately harm your bottom line. Contingencies are fine in case something does not go as planned, but you must take a reasoned, even approach when developing your terms. You should also work to present a calm demeanor to the other parties. You will be in a better position to ask for what you want with confidence, which can be disarming to the other side.
Trying to negotiate terms as quickly as possible
Negotiations require a prolonged back and forth, which is frustrating when you feel you are not getting anywhere. However, this is a common aspect of contract negotiating, and taking a patient approach is preferred to accepting terms you are not entirely comfortable with just to get to the end of the process. Holding out might also push the other party to accept your terms, which definitely works in your favor.
Not being aware of what you really want
You should walk into the meeting room with an exact understanding of what you want to ask for. The stronger you are in your decisions, the better you can defend and justify them to the other side. Perform the necessary due diligence to know which terms favor you the most and ask for them assertively.
While compromise is important in business, so is being self-assured. This is especially true when the other party is equally competitive.