A stable, clear contract is key for business success but you also need to review these contracts and make sure you are adapting them as your business evolves.
To ensure that your renegotiations go smoothly, check out the following tips for this process.
It’s never too early to start
Conversations around renewal can go on for a long time and be a complex back and forth for months so it is a good idea to get started early.
Review the contract in question, get an idea of what you’ll want to change or adapt and be well-prepared for any conversations that you may have surrounding the renegotiations.
Being prepared can work wonders.
Give and take
If you are looking to make changes to the contract that will be a disadvantage to the other party, you need to give something back in return.
Offering a different benefit or commitment to the other party will show that you are willing to compromise and are not only looking to create benefits for yourself and your business.
Consider the relationship
Renegotiation can be a tricky and testing time for the business relationship you have created.
You should ensure you are open and honest while communicating with the other party and remember that many businesses will value long-term relationships over exploring other avenues.
By being considerate during renegotiations, you can strengthen the business relationship you have while also making changes that will help your own business grow.
If unable to come to a resolution, consider mediation during the renegotiation process.
This provides you with a way to salvage the business relationship while being non-binding which creates less pressure for both sides.
For more advice on this, contact us.