In a previous post, we discussed tips for working with big clients in B2B contracts. However, we need to cover the ways in which smaller companies should enter into these relationships and negotiations. Corporate companies and smaller, start-up-type businesses handle negotiations differently, so you should do your best to prepare for intense, ongoing talks. Here’s our advice for entering these relationships.
- Develop personal relationships. Understand the role and function of the people you meet during negotiations and try to build personal relationships. This will allow you to cater your pitch to their individual interests, highlighting one of the key reasons why working with a smaller company has advantages.
- Be clear and forthright. Focus your pitch on where you can make the most impact for the larger company. Utilize quantitative data to quickly and succinctly tell them that utilizing your services will save X money, X amount of time, or generate X measurable PR benefits. Speak their language and use empathy to make a big impression.
- Value your work. You may be tempted to cut your price in order to snag a big client. In reality, these large clients are the businesses who can and should be paying more; they have the resources, and they’re going to take up a lot of your time. Don’t low-ball price negotiations.
- Understand how your size works in your favor. Don’t change who you are or how your company operates to cozy up to a large client. In most cases, large companies are pursuing you because of the way small businesses operate. Delivering the goods on time and sticking to a budget are essential but remember to incorporate the personal touch you’re known for. Don’t posture your company to seem larger than it really is.
- Find an excellent lawyer. Odds are that you don’t have experience in negotiating commercial contracts. Prevent yourself from getting pushed into a corner by hiring a good lawyer. This resource will tell you what’s normal, if you’re getting a good deal, and how to stick up for yourself when negotiations get tough.