Contract Negotiations

The first step in contract negotiations is to first articulate and understand your objectives–both current and future. Then try and rank those objectives so that you know which ones you need to accomplish and which ones may be nice to have but not completely necessary. This means you need to understand the difference between what you need and what you want. 

Negotiations

The second step in contract negotiations is to know your bottom line and have the ability to walk away. This is the most fundamental questions. What is it you absolutely must have and nothing less will suffice? You should write these down and underline them several times, so you do not forget! Next, set performance measurements so that you know what to expect from both your side and the other side and you can then measure whether the relationship is successful.

The second step is to know your bottom line and have the ability to walk away.

The next step is to try and outline all potential risks and try to ensure you deal with each. Know if insurance is involved. Are there any government regulations that could have an impact? Also, think about whether there are confidentiality concerns. Would you care if your competitors knew the terms of the deal? Try and have some sort of dispute resolution requirement. There are always issues in any relationship–try and outline how you would want to deal with issues if you encountered them with the party on the other side. It is always easier to do this when you get along with the other party!

Try and discern whether you need an attorney. Attorneys are expensive–but they are sometimes very necessary and can save you from getting into a lot of problems. Their experience can sometimes prove invaluable.