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
Steps For Effective Contract Negotiations:: 2. Do Your Research
Lesson Nugget:: When negotiating you must think through the other sides perspective and point of view.
Lesson Nugget: : Self-awareness is key when negotiating. You must know your weaknesses.
Lesson Nugget: : You must assume that the other party will not be nice and will be rude when negotiating with you.
-OK, step number two-- first step, committing to that mindset, being comfortable prepping like you were talking about for Maurice Kanbar like Oprah says here. Step two, step two-- do your research. Clay, what do you mean by do your research?
-Well, when I talk about doing the research-- let me walk you through this real quick. If we look on the board here and you're doing the research, this is like, we'll call this the A-team. Because that's you. And you are a winner, winner, chicken dinner. You're the best, right?
But the other guys-- you ever seen TheOtherGuys with Will Ferrell and Mark Wahlberg? The other guys-- these are the guys that-- this is not the A-team. This is the other guys. This is the people you're negotiating with, let's say.
They-- over here-- look at it from a certain bias. They're thinking, well, this is why it's a good deal for us, this is why it's not a good deal for us, this is why it's a good deal for you, this is why it's not a good deal for you.
And over here, you have your own bias. And so the main thing is you've got to make sure that you think about the other side's perspective. You can't just be thinking about your perspective, because if you do, what you're doing is you're going into the negotiation kind of flying blind. You're actually going to struggle if you don't put on the other team's shoes, if you don't get in their boat, so to speak.
You really have to look at the deal from their perspective. Very, very important that you do this because, again, you have to do your research, OK? You have to.
Also, you've got to understand that your company has kind of a weird smell going on. What am I talking about? I'm talking about that if you're the other guys, and you're looking at this business, and you're going, why does this deal stink, why does this deal stink? And you're saying, why does this deal stink? Both sides are saying, why does this deal stink?
And you think that your deal doesn't stink, because you think that you are God's gift to business. You think you've got it going on. You think these guys are trying to take advantage of us. These guys are trying to-- and then these guys are thinking, hey, these guys are trying to take advantage of us.
And so you have to make sure that you know any of your weak links. You have to know what it is that's the worst part of your deal. You have to know that. So don't be thinking that your deal and that your company is flawless. You have to look at your company, and be very self-aware, and go, what is it about my company, or about this deal, or about this proposition, or about this contract that's not a good deal for the other guys?
And what kind of things are not a good deal about those guys? And you have to make sure that you think about this objectively. Do not go into there with your own bias, completely clueless to what the other side is thinking.
Some people call this a rude interview. And if you go to PR school and you spend a lot of time there, they're going to talk about this thing called the rude interview. And when you're doing an interview, if you were prepping to do a debate, or prepping to do a media appearance, you have to prepare as though the person interviewing you dislikes you, and they're going to ask you rude, offensive questions that you're not prepared for.
So you want to make sure that you think in kind of a devil's advocate sort of mindset where you go, what about my deal stinks? What about their deal stinks? And that's going to help you.