Negotiating is a learned skill. This is Part 1 of a 10 part series on the Art of Negotiating Contracts within the Cannabis, Hemp, and CBD Marketplace, published every Friday.
Businesses within the cannabis, hemp and cbd marketplace have to negotiate a variety of contracts from purchasing, processing, packaging, leases, and getting products in front of consumers. Other contract negotiations may include buying or selling a business and contracts with investors. The importance of each contract can be intimidating.
You are negotiating for your business’ success and future.
You are negotiating for the people who work for or will work for you.
You are negotiating for the friends and family who supported you in your business journey.
As the person representing your company, you share equal power with the person you are in negotiations with. You are the CEO and decision maker in your business. What you bring to the table are quality products or services, impeccable customer service, business reputation and professionalism.
Successful negotiations begin before you sit down to negotiate a contract.
Success begins with your attitude, level of confidence, preparation and negotiating skills.
Negotiating is not a battle or confrontation. It is not about one side winning at the loss of the other side.
Negotiation is a Win-Win in which each party achieves its goals within the confines of a value-creating process.
People never plan to fail, but they often fail to plan.
Prior to the actual sit down, research the company you are negotiating with. The internet makes it easy to obtain to general information;
- When was the company started?
- Who are the stakeholders?
- Who makes the decisions?
- What are the business goals?
- Has there been a high turnover rate in management?
- Is the company seeking investors or for sale?
- Are they growing and expanding?
- Does the company have a positive reputation?
The second element of preparation defines what you are negotiating for.
- Be clear about objectives.
- Determine your needs.
- Assess the needs of the other party.
- List and rank the issues important to you
- What concessions are you willing to make?
- What is your minimum acceptable outcome, anticipated outcome and ideal outcome?
- Determine your Best Alternative To a Negotiated Agreement (BATNA)
The goal is a good deal, not a bad deal.
Addison Morris has been a serial entrepreneur since 1968. Addison believes that in the politically charged, competitive cannabis, hemp, and cbd marketplace, business principles and best practices are a crucial element for success. She speaks and teaches marketing, and negotiation skills. Her goal is to move women from empowerment into power through business education, resources and connections.