Are you a small company who struggles with overwhelming contractual demands of big businesses? You’re not alone!
With the size and complexity of organizations today, companies are constantly relying on each other to complete their respective projects. Whether you're a small business or a large business, they both need each other equally in order to get the work done. When working with big businesses (aka "the client"), we often find that many times they make unreasonable demands of us when it comes to our contracts and agreements.
If you're a smaller company that needs business, then this contract requirement most likely sounds like something that's only meant to limit your liability. And if you're a larger company with contracts like these, then maybe it's time for you to reevaluate your relationship with the smaller companies. Without them, you wouldn't be able to do as much as you do now and we bet that without their services and/or product, many of your projects would suffer and hopefully not fail.
So why do big companies wish to use large enterprises when so often they try to impose such limiting terms? We believe there can be three reasons:
They don't understand what is involved in the job and only need the end result, not the work that goes into it
They are worried about receiving sub-standard services/products so they try to limit their risk by inserting these conditions
They don't understand what they want so they include limiting conditions in order to protect themselves from future changes.
We realize that companies today are facing more complex situations than ever before. There's much more competition for services and products, which means that potential customers can shop around until they find just what they're looking for at a great price. Because of this, businesses naturally want to protect themselves as much as possible when making arrangements with other businesses. And why wouldn't you? This is likely your business we're talking about, after all. But in order to sustain a healthy relationship between both parties, the terms of the contract need to be realistic. There's no use in limiting the liability of one company when accepting such limitations has caused that company to lose its potential customers.
Ultimately, we believe both parties should reach a middle ground and find terms that are fair for both sides. We all have unique ideas about what is right and just, but keeping an open mind about what will truly benefit the relationship between two companies can be difficult. It's important to understand each other's needs while also understanding your own boundaries. If you're working with a large company or dealing directly with them as a smaller business, here are some tips you can follow in order to help ensure everyone gets what they want out of their contractual agreement:
Be prepared! Know exactly what you are offering the client before you meet to discuss terms.
Make sure you are aware of any restrictions that might be placed on your products or services in order to prevent being caught off guard during negotiations. Sometimes companies try to slip these things in so it's important to read every detail carefully.
Know what parts of your agreement can be changed and when making changes is allowed. Can you contact the large company if their requests are unreasonable or do they have ultimate power in this matter? If this is the case, then think again about signing that contract…it may not be in your best interest!
Be open minded about your client's concerns, but also stay true to yourself and protect yourself from potential future changes. Remember, a contract is just a mutual understanding between two parties and it's important to remember that both parties have needs that need to be satisfied!
In conclusion, having large contracts with big companies can work out well for smaller companies as long as terms are open for negotiation and the client recognizes how their requests may affect what you have to offer. We all have different thoughts about what should be included in a good contract, but being flexible is key to finding satisfying terms for everyone involved.