Navigating Contracts and Negotiations

Maybe you’ve written the most exciting new horror novel since Stephen King picked up a pen. Maybe you’ve created an elegant yet simple spreadsheet macro that will save accounting companies thousands of hours a month. Perhaps you’ve discovered a new construction material in your garage workshop that’s as hard as diamond but cheap as concrete and will revolutionize the construction industry.

Aspiring authors, obscure programmers, and unknown inventors can’t tell you anything you don’t already know as a small business owner—sales are the lifeblood of any company! If your customers have never heard of you, your end date is already in sight.

These days, everyone keeps their eyes on marketing and social media exposure, and those are most certainly important. But did you know that contracts and negotiations can also play a crucial role in boosting your sales?

         1.  A well-drafted contract can save you money

Let’s start with contracts. A well-drafted contract can be the difference between a successful sale and a costly legal battle. Make sure your contracts clearly outline the terms of the sale, including the price, delivery date, and any warranties or guarantees. This will reduce the chance of misunderstandings and disputes down the road. And don’t be afraid to have a lawyer review your contracts before you sign them. It’s a small investment that can save you a lot of headaches in the long run.

         2.  A good negotiation increases future sales

Now, let’s talk about negotiations. Negotiations can be nerve-wracking, but they’re a necessary part of the sales process. The key is to be prepared. Know your bottom line and be willing to compromise. And remember, the goal of negotiations is to find a mutually beneficial solution. By keeping the relationship positive, you’re more likely to close the deal and secure future sales.

         3.  Mediation and arbitration won’t break the bank

But what happens when negotiations break down? Mediation and arbitration can be a great alternative to going to court. These processes are faster, cheaper, and less adversarial than traditional litigation. And if you have a well-drafted contract, the terms of the mediation or arbitration will be clear, making the process smoother and more efficient.

         4.  Following the law decreases risk

Another important aspect to consider is the compliance with any laws and regulations related to your product or service, like consumer protection laws, data protection laws, and intellectual property laws. If you’re not following the laws, you’re putting your business at risk, which can lead to a decrease in sales.

While everyone likes to focus on the sexy side of sales, it’s important to remember that the legal behind-the-scenes elements are just as, if not more, important for long term success. By having clear, well-drafted contracts and being prepared for negotiations, you can reduce the risk of disputes and increase the likelihood of closing deals.

Remember, it’s always better to be safe than sorry, and if you make sure you have a solid legal framework in place, you can go back to creating!