Negotiating with clients is an integral part of any small business’s daily operations. When hammering out acceptable rates and service terms, it’s important to remember that contract negotiations are far from a one-size-fits-all affair. Each client is unique, and as such, terms that are acceptable to one client may prove disagreeable to another. That being case, people who are new to contract negotiations often feel overwhelmed and out of their depth when it comes time to meet with new clients. Fortunately, such negotiations can be carried out in a relatively timely and stress-free manner – provided, of course, you’re armed with the proper knowledge. The next time you find yourself negotiating with a new client, put the following pointers to good use.
Minimize Ambiguity
When engaged in client negotiations, it’s in your best interest to minimize ambiguity. The more ambiguity a contract has, the greater the odds that one party – or both – will experience disappointment. To ensure that everyone is on the same page, take care to decide on mutually agreeable project deadlines and compensation options. This way, if a client accuses you of being in violation of the terms of a contract, you’ll be able to point to specific areas that back you up. However, if a contract’s terms are clear enough to begin with, there should be very little room for disagreements or misunderstandings. Additionally, investing in dependable contract lifecycle management software can prove invaluable in helping your business keep track of its various contracts.
Make Yourself Available
You’d be hard-pressed to find a client who enjoys working with contractors who are consistently unavailable. No one appreciates having phone calls and emails ignored, especially when money is on the line. As such, it’s imperative that you make yourself available and keep the lines of communication wide open throughout the negotiation process – and beyond. Prospective clients are far more likely to give their business to companies that are available to answer questions and address concerns at a moment’s notice than enterprises with a history of poor communication.
Be Mindful of Overpromising
In trying to win over prospective clients, many enterprises make the mistake of promising the moon. However, not only does this create unrealistic expectations, it puts undue strain on businesses to deliver on impossible promises. To prevent such situations, make an active effort to avoid overpromising. This isn’t to say that you should undersell your enterprise, but you should keep your promises realistic relative to a project’s budget, time-frame and available manpower. This approach may not wow every potential client, but it will decrease the likelihood of disappointment down the line.
Clients are the lifeblood of any successful enterprise. In the absence of a dependable roster of clients, any business is bound to experience a substantial decrease in profits and eventually become unsustainable. With this in mind, it’s in every entrepreneur’s best interest to put their best foot forward when it comes to time to negotiate with new clients. While this may strike some business owners as a daunting prospect, the previously discussed pointers can make the process considerably less stressful.
