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    A Simple Guide for Managing Business Contracts

    As a business owner, it is often necessary to deal with other companies in the course of developing, manufacturing, and marketing your products. Whether you're dealing with a manufacturer, a hosting site to run your online store, or a delivery service to get packages out on time, these relationships require contracts to maintain the service to one another. 

    Types of Contracts Each Business Needs

    Business contracts are needed to help run your company smoothly. It's basically a legality that protects you and other companies when arranging agreements that mutually benefit each other. Although there are over 30 different kinds of contracts, the top five are:

    • General Employment Contract

    • Property and Equipment Lease

    • Indemnity Agreement

    • Partnership Agreement

    • Nondisclosure Agreement

    How to Create the Appropriate Contract 

    Although there are several important tips to follow when making a contract, you also need to understand the type of contract you want to create in order to know how to make it. If, for example, you have a General Employee Contract, you'll want to make sure it includes the obligations of the employee and employer, lists how long the contract is good for, and sets out an agreement for an initial payment and a possible timeline for raises. Depending on the type of contract, other stipulations may need to be included or refined.

    Tips to Negotiate the Best Contract for Everyone

    Creating a contract is only the start. Once it is made, you and the company you're communicating with will need to come to an agreement on terms. This is where negotiating comes in, and you'll need to follow some detailed tips on how to get the best contract. These tips include:

    • Research the other business and write a draft. Understanding what the other company wants and what they do will help negotiations go smoother.

    • Split the contract into important sections. No one likes reading one big word block. Highlight important parts and title each section.

    • Keep communication open. Listen to the other company's proposals and don't shut them out. Make sure to keep in contact with them consistently.

    • Take your time. Don't rush negotiations; take time to think about offers and provide counteroffers.

    Tools to Use to Manage Each Contract

    Larger corporations usually maintain nearly 40,000 contracts. Your business may never reach that size, but even smaller companies often have to manage quite a few. With so many contracts in force, it can be tedious to keep up with all of them without some technological help. You should always utilize tools to modify, edit, and present them. One of the easiest ways to make a new contract is to take sections from an old one and copy them over using a PDF tool. It’s simple - a tool can help extract PDF pages to create a new document.

    Business Contracts are Essential to Maintain

    No matter the type of business you run, you'll need to learn how to create and maintain business contracts with different companies. Join your local chamber of commerce today to access the best information for businesses in your area.

     
    Offer Valid: May 26, 2022May 31, 2024
    Sparta-White County Chamber of Commerce