Business growth can show itself in many ways. In some cases, entering into business relationships, whether that be with employees or other outside parties, can be a sign of growth, but it also means that Michigan companies need to take steps to protect their interests. In particular, business contracts can help add a layer of protection when working with outside parties, but when creating these agreements, negotiations may be necessary.
It is typically wise to never agree to the first draft of contract terms, even when drawing up terms oneself. Loosely drafting a contract first could allow company owners to get an idea of what they think will help protect their interests, and it may be necessary to include terms dictated by the other party from the outset. It may also be wise to consider the agreement as something with individual parts that can be agreed upon rather than taking an all-encompassing approach.
When it comes to negotiating to nail down a final draft, being able to answer the following questions may be useful:
- What key goals is the company owner attempting to achieve?
- Why is working with the other party beneficial?
- What does the other party want out of the arrangement?
- Can a win-win outcome be reached?
It is not uncommon for business owners to be inexperienced with business contracts and negotiations, especially owners who are just starting out. Fortunately, Michigan business owners do not have to try to navigate this process on their own. In fact, it is often prudent to have professional legal assistance when drawing up and negotiating a contract to ensure that the terms meet necessary laws and do not have any hidden issues.