Featured Coaching Training: 17 Steps For Effective Contract Negotiations
Are you having trouble with contract negotiations? In this episode learn the 17 steps to effective contract negotiations taught my the Small Business Administration's "Entrepreneur of the Year" Clay Clark.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Notable Quotable:: “Let us never negotiate out of fear. But let us never fear to negotiate.” - John F. Kennedy (35th President of the United States)
Lesson Nugget:: Don’t negotiate out of fear or you will lose.
Notable Quotable: : “Sometimes your best investments are the ones you don’t make.” - Donald Trump (Self-made billionaire, real estate tycoon, author and entrepreneur)
Steps For Effective Contract Negotiations:: 1. Commit To A Mindset Of Exhaustive Preparation
Notable Quotable:: “I feel that luck is preparation meeting opportunity.” - Oprah (Self-made billionaire and media mogul)
Lesson Nugget:: We can all develop negotiation skills if we are willing to put in the work.
Notable Quotable:: “Paper is to write things down that we need to remember. Our brains are used to think.” - Albert Einstein (Renowned inventor and physicist)
-All right, Thrivers. We are talking today about 17 steps for effective contract negotiation. We've had a lot of Thrivers who want to know, how do we negotiate contracts, and specifically, we have a mail bag question. So Marshall, I'm going to throw it to you.
MARSHALL: Awesome. So this Thriver writes, I work at a school, and I'm constantly working with other vendors. How do I negotiate with these people? On a broader note, what are the overall rules for negotiating? And we got this coming from Kimberly. She's a Thriver, she's a teacher from Staten Island, New York.
-Real-- I've been to Staten Island before. I have been there.
-Was it pretty magical?
-Yeah, what I do is I wanted to save the ferry ride costs associated with going to see the Statue of Liberty, so I took a ferry out to Staten Island-- I've done this numerous times, it's kind of my move. So I ain't mad at you Statue of Liberty, I'm just trying to save some money.
But anyway-- so we're talking here specifically about the steps for effective negotiation, and I want to make sure that all the Thrivers keep this in mind. There's just two-- two mindsets you want to keep in mind, two notable quotables here. The first one is from our-- the 35th president of the United States, John F Kennedy. And he said, "let us never negotiate out of fear. But let us never fear to negotiate."
If you're watching this, I mean, the reality is is that negotiating sometimes-- whether you're negotiating to buy a suburban for your wife, which I did a few years ago, or your negotiating to buy a Hummer, which I did as well, or you're buying-- you're negotiating to buy a house or buy a business, sort of-- sometimes, this negotiation, we kind of fear it. We don't want to get into it.
But John F Kennedy says, let us never negotiate out of fear. The point is, let's just when you're negotiating, let's have some confidence here. And we hope-- hopefully today at the end of these 17 steps, you'll have the confidence needed to negotiate without having any fear.
And the second quote I want you to keep in mind is from our main man Donald Trump, who-- he might end up being president, we don't know. So here we go. I'm going to read this quote to you. He says, "sometimes your best investments are the ones you don't make."
Well, how does that relate to this? Well, what we're saying is when you negotiate, you've got to be prepared to walk away. You've got to be prepared to kind of go, I don't know if that's the-- that's the right deal for my family, for my business, I don't know. So let's make sure we can have those two mindsets, those two notable quotables in our mind, as we hop into today's training. So Marshall, let's go ahead and hit them up with step one.
-All right, so step 1 of the 17 steps for effective contract negotiations. Step 1, commit to a mindset of exhaustive preparation.
-Well, first off, we tried to get to 18 steps. We couldn't do it. We had budget cuts, so we got to 17-- so no, but here's the deal. The reason why we're talking about this is there's some things you have to do pre-negotiation. Like pre-- before you're actually in the room with the people negotiating, there's some things you have to do first. And this first one is you have to commit to that mindset of exhaustive preparation.
So exhaustive-- what am i talking about? I'm talking about-- you want to really dive in to the studying and the preparation at a level that doesn't make sense. You want to just absolutely-- I'll give you an example. Years ago, I was working with Maurice Kanbar, and that's the guy who owned SKYY vodka. He actually founded SKYY vodka.
And before that guy came to town, I knew that he'd sold the business for around $600 million, and I knew that he had bought roughly about one third of downtown Tulsa. But that's what everyone else knew. But I wanted to just read his life story, I wanted to read his autobiography, I wanted to read articles about him, I wanted to know everything about this man because when I-- it came to negotiate with him, I wanted to be prepared.
So I'm going give you this notable quotable here, it says-- Oprah, this is from Oprah. Maybe you've heard of Oprah from such shows as Oprah. She says, "I feel that luck is preparation meeting opportunity." So what she's saying is that even though I had a rare, once-in-a-lifetime unicorn opportunity to meet with Maurice Kanbar, the founder of SKYY vodka, if I hadn't taken the time needed to prepare, there is no way I would be able to have "luck". So it's the preparation meeting that opportunity.
And I want to make sure I encourage you Thrivers, if you're watching today and you go, I just dont' have any negotiation talent. Don't worry about talent, it really comes down to skill. And skill is something that you can develop. I took algebra three times, I took my ACT three times, I-- basically any class you could take three times, or anything you could do three times, that's what I did. And I can tell you that if I can do it, you can absolutely do this. This is a skill that you can learn.
And the following notable quotable I want to give you guys-- now as you're watching this, it's super-duper, crazy, unbelievable, end-times important that you take some notes here, OK. Because Albert Einstein, my main man Albert Einstein, he says this, "paper is to write things down that we need to remember." Remember, paper. Paper, he says, "paper is to write things down that we need to remember. Our brains are used to think."
So what you've got to do is as you're watching this training, take notes there. Take notes. You can take notes right there on the Thrive 15 platform, or you can take it on a notepad, but you want to take those notes so that you can apply it the next time your negotiating.