3 Planning and Legal Tips for Business Negotiations
Posted on: 4 October 2018
If you are preparing to make a new deal which will allow your start-up company to grow, it is essential that you learn the steps you should take to ensure that the negotiations are a success. The aim of the negotiations should be to get the best possible terms for your business and the best quality product at the lowest price to your customers. Below is a guide to 3 things you can do to ensure that your negotiations reach a successful conclusion.
Plan Ahead and Hire a Lawyer
It is a mistake to think that business negotiations only begin the moment you sit down across the table from the other party. Preparation for negotiations should begin well before the official face-to-face encounter. Before that stage occurs, you should determine exactly what you want from the deal and the terms on which you are and aren't willing to be flexible. It is always best to hire a lawyer as early in the process as possible as they will be able to guide and advise you on any obstacles you may face. For example, you may not be aware of the local or state laws that could impact the negotiations. Finally, you should plan how the negotiations will be staged. Negotiations normally take place over an extended period of time. You should ensure that you have allowed an adequate amount of time for the other party and your own team to consider each other's offers and to generate counter offers.
Ask a Lawyer to Ensure the Terms of the Deal are Fair and Legal
While you should always seek a deal that is in the best interests of your company and your customers, it is important that the terms of the deal for the other party are also fair. In the long run, forcing the other business to accept unfair terms could damage your own business. For example, if you negotiate a deal with a supplier that is very favourable for your business and places an unfair burden on the other party, you may find that your supplier eventually goes out of business. This will mean you need to spend time, money, and energy seeking a new supplier. You also need to check that any agreement is legal and does not break any commercial laws, such as trade tariffs. A lawyer will be able to assist you in doing this.
Ask a Lawyer to Draft and Review Contracts
You should never rely on gentleman's agreements when negotiating a business deal. While having trust in your partners is vital, this trust should always be covered by legal expertise. You should hire a lawyer or team of lawyers who will be able to review and draft contracts during the negotiations.
If you would like further assistance or advice, you should contact a lawyer today.
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