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Common contract negotiation missteps

8/31/2011

For small business owners working to create new IT consulting contracts with clients, negotiation is part of the game. However, in a post for the Stanford Graduate School of Business, Barbara Buell says business owners should avoid a number of common errors.

One issue, she notes, is that many feel they must compromise about what they want to get out of the deal. However, that is not always the case, so business owners shouldn't settle for less than what they want before even getting the negotiations started.

In addition, with the spread of technology across the world, the other parties in software contracts may be based in India, Europe or another location. In that instance, it's important to keep any cultural differences in mind when pursuing the seal.

Most of all, Buell says one of the most important parts of the negotiation may actually come after the deal is signed. She says small business owners should take care not to "gloat" over what they feel is an advantageous deal, since it may undermine future negotiations.