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Negotiating a contract with a big client

6/15/2011

A recent Inc magazine article discussed the best way for companies to negotiate contracts with large clients.

First, the article recommends that companies ask for more notice. By requesting additional time to negotiate, companies are less rushed to reach an agreement. Companies can also request the right for negotiation or the right of first refusal, which provides businesses the chance to offer a competing bid if a client wants to negotiate with a competitor.

Companies should also ditch any nondisclosure clauses, Inc relays, as "having a big brand on your client list isn't as valuable if you can't tell anyone about it."

Next, businesses should keep their intellectual properties when negotiating an agreement. For instance, if a company creates something new, keeping the rights to it is essential.

Many agreements now involve shared ownership instead of simply taking away any intellectual property rights. However, negotiating the terms of use for this area can become tricky, according to an expert that spoke with Inc. Thus, handling this aspect of negotiations with care is important, lest the contract fall apart.