the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Contract Negotiation: How do I work around the fact that big companies, that want my service, have policies not do business with small companies like mine?
DS
DS
Devon Smiley, Negotiation Consultant - procurement and sales answered:

Hi there!

First off –congrats on the opportunity. That you’ve found a great fit for your software is wonderful news.

Based on my experience negotiating contracts with companies of all sizes, particularly for procurement organizations, I have some suggestions -

Has the potential customer been able to share with you why they aren’t able to sign a contract with a small company? Beyond there being a ‘policy’, what concerns do they have, and why do they have them? Asking questions to uncover the specific concerns will help you determine if there’s a feature or term in the contract that you can adjust to address the issue. (Some variables that can pop up as concerns are insurance coverage, financial stability so that you'll be around to support them long-term, contingency plans/systems, or adequate bandwidth to meet their needs for customer service/tech support)
I’d recommend exploring this path a bit more with the potential customer before bringing a 3rd party into the mix.

If the client’s concerns can’t be addressed successfully in a negotiation of the contract terms, bringing in another party to act as an agent or distributor is an option.
Some thoughts on what to look for in that relationship:
- establishing a contract between yourself and the agent (independently of the client),
- financial arrangements related to fees/% due to the agent (they may not be doing any development, but facilitating the deal is a service that they’ll likely require payment for),
- limitations on the relationship with the agent (so that it’s for this specific client/product/time period. This way, as your company grows, you’re not limited by that structure).

Hope that helps get you moving with discussions – would be happy to provide assistance along the way.
- Devon

Talk to Devon Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.