In business, negotiations are the fundamental way of concluding more important commercial agreements. In protracted negotiations of both less important and essential contract clauses, successive versions and amendments are sent back and forth. We present 9 extremely effective ways and techniques for conducting negotiations quickly, which you can apply even if you are not a lawyer or a professional business negotiator.
💡 Key takeaways
- In business negotiations, time is money. Longer delays often mean actual losses for both parties.
- The key to a swift contract conclusion is initiative (e.g., proposing your own simple template) and maintaining imposed, short response deadlines.
- Replacing formal emails with faster forms of communication (instant messaging) or making live changes can significantly speed up the process.
- Don't waste time discussing clauses that don't actually pose a real-world threat to you.
- A good negotiating lawyer doesn't create problems, but helps both sides resolve them efficiently.
A good contract template is one whose provisions address only real-world problems. Contract clauses referring to problems that do not occur in the real world are the best indicator that it's time to ask a lawyer to prepare a new, better contract template.
How to successfully negotiate a contract in one day. 9 effective ways
Since you're here, you're probably wondering: how can you speed up contract negotiations? In business, negotiations are the primary way to conclude significant commercial agreements. In drawn-out negotiations of less important and essential contract clauses, successive versions and amendments are sent back and forth. This usually causes both parties to quickly become frustrated, or – worse – simply weary. Unfortunately, negotiating contracts is a complex process that progresses through various stages. Negotiation strategies are one thing, but you must primarily consider time variables, different participant motivation levels, and react accordingly.
Some legal and business negotiations of individual contracts and their provisions drag on forever. This is the sad characteristic of this bureaucratic side of business. However, if we really care, this process can be significantly improved by properly using knowledge about the principles of effective legal and business negotiations.
Briefly – what is the definition of negotiation? Are business negotiations the same as sales talks?
From a business point of view, yes, actually. By the process that we describe as concluding commercial contracts, we basically understand any negotiation of contracts and activities aimed at concluding a B2B transaction, i.e. concluded between entrepreneurs.
The methods described in this article will be effective regardless of whether the discussions or negotiations are of a legal or commercial nature, and whether they concern a container of nails, the delivery of photovoltaic panels, photographic services, or the rental of office space for 5 years. Negotiation techniques are universal in nature, although the negotiation strategies themselves are usually highly adapted to the subject of the negotiation. As a side note, we mention that a significant portion of our proposals aimed at speeding up negotiations can be applied not only during business contract negotiations, but also to contracts concluded by individuals not conducting business activities, i.e. individual clients.
Here are our 9 effective solutions to speed up business negotiations:
1. Propose your contract template. If possible, present a design as simple as possible.
If you initiate legal contract negotiations and you have the opportunity, start by sending your own contract template. Regardless of whether you are negotiating a contract extension or a completely new contract. The first offer should come from you, which will put you in a better starting position for further negotiations.
Sending your own contract template is a tactic that works perfectly in the case of simple transactions and those that are somewhat standardized - for example, the most typical contracts for your company. The simpler the structure and less complicated the provisions of the contract, the easier it will be to reach an agreement.
If your overriding aim is to quickly conclude commercial agreements, avoid unnecessary contractual clauses in the submitted drafts and focus only on key issues. A good contract template is one whose provisions address only real problems.
2. Plan the negotiation and contract conclusion process with the other party for a given day.
When beginning business negotiations or simply wanting to speed up the contract signing process, propose and firmly enforce short deadlines for submitting amendments. For example, inform them that you will send your proposal at 10 AM and ask the other party to set a non-negotiable time by which you will have to wait to receive a response, e.g., 2 PM.
Don't be afraid to call the other party – effective negotiations and reaching agreements are based on conversation. Use positive and constructive language to shorten the problem-solving process.
3. If you want to conclude a contract quickly, meet your deadlines.
The secret to effective negotiation is timeliness. If you fail to meet the deadlines, the other party will feel absolved of their obligation too. If you miss deadlines, you will undermine your credibility with the other party. You must show that meeting deadlines is easy, so it is a good idea to send your draft agreements or introduced amendments half an hour or an hour before the promised deadline.
4. To speed up commercial and legal negotiations, streamline the communication process.
Instead of email communication, you can arrange direct communication with your negotiation partner via instant messaging apps like WhatsApp, Messenger, or Slack. Recipients, when they receive a message on an instant messenger, feel a greater compulsion to respond quickly. This allows for a faster exchange of information and draft agreements.
5. Conduct the next stages of negotiations as soon as possible.
If you are conducting business negotiations remotely, schedule a mandatory video conference at the end of such a negotiation day. If you have direct contact with the other party, a meeting at an agreed location is best. Such a final meeting allows for direct clarification of all outstanding doubts and contentious issues.
6. Utilise modern technologies.
Ideally, changes to the negotiated agreement should be made in real-time, immediately, when all parties to the negotiation are present. During professional negotiations, it is best to display the draft agreement so that everyone can see it (e.g., on a projector screen or by screen sharing in communication tools), working on the document online.
7. Ensure all negotiating parties attend the final meeting.
If you want exceptionally effective contract negotiations, ensure all decision-makers and necessary advisors – lawyers, accountants, bankers, etc. – are present. The absence of key individuals is one of the primary reasons for delays.
8. Do not discuss the provisions of the negotiated contract that do not pose a threat to you.
Don't waste time arguing over contract clauses that don't actually affect you, or don't pose a real risk. The other party's representatives very often consult lawyers on the change of any provision, so insisting on changing improbable and harmless issues from your point of view unnecessarily prolongs the time.
9. A lawyer who is a negotiator will be useful.
If the conclusion of a given agreement is complicated or very important, it is worth considering hiring a lawyer who specialises in negotiating contracts. A good negotiator is not one who tries to harm the other party. A good negotiator is one who helps both parties reach a favourable agreement by effectively finding solutions to problems.