Negotiate From a Position Of Strength

In business, as in life, your skills as a negotiator will occasionally be tested. By concentrating on five fundamentals in particular—preparation, factual agreement, rapport, active listening, and common interests—you can greatly improve your prospects for success.

A negotiation strategy can’t succeed in advance, but it can fail in advance.

There is arguably no more important component of a negotiation strategy than preparation.

Start by envisioning the negotiated outcome to which you aspire, and understand why it is desirable for you. Identify your must-haves. This will enable you to distinguish areas where you are willing to compromise, from areas where you are determined to stand firm.

Your preparations for a negotiation should include research into the other party and h/er interests. Try to identify the outcome the other party desires, and issues on which you think s/he may be willing to compromise.

Finally, it is important that you clarify the terms and process of a negotiation at the outset. Who will be present at the meetings? How long are the negotiations anticipated to last? What does the other party’s chain of command look like, and who will sign off on the final decision? Are there key dates upcoming, deadlines, or other technical details that need to be established?

Make sure the other party is willing to agree, in writing, to the terms of the negotiated outcome. You want to avoid a situation where the other party unilaterally re-opens negotiations that you thought had concluded.

Establish consensus on key facts.

Negotiations tend to be deliberate and can be mentally taxing, so it’s helpful to reach agreement on the facts, and thereby avoid unnecessary discord and delays.

Over the course of the negotiations, information may come to light that is new to you. Should this occur, make a note of it and try to verify it. Call for a pause in the negotiations if necessary. Don’t accept a consequential “fact” that you don’t know is true, or an interpretation of reality you can’t endorse.

Just as importantly, both parties to a negotiation must have realistic expectations—including an understanding of the conditions that each party faces.

If, for example, a manufacturing subcontractor cannot fill an order because h/er factory has sustained significant damage in an earthquake, a well-informed manager of the retail firm that placed the order won’t attribute the shortfall to the subcontractor’s incompetence or negligence. A shared understanding of facts on the ground, including risks and potential causes of delay, is often essential to maintaining positive professional relationships.

Build rapport.

This involves getting to know one another personally, ensuring that all parties are on the same page, and managing or de-escalating conflicts. Rapport has verbal and non-verbal components; body language plays a central role.

Progress in negotiations tends to be especially difficult when there is hostility between the parties. Small talk can help to break the ice, but in some cases, this approach simply won’t be adequate. Some basic conflict management techniques can help you move forward in negotiations, even if you aren’t particularly fond of your counterpart.

•  Avoid making provocative statements that may cause your counterpart to shut down or become defensive.

•  If your counterpart makes such a provocative statement, express your lack of appreciation therefor, but suppress the temptation to retaliate in kind.

•  Maintain non-threatening physical posture and body language. Speak calmly and slowly, and de-personalize the source of conflict—for example, “This situation makes me uncomfortable.” rather than “You are making me uncomfortable.”

•  If necessary, take a break, and return to the topic of contention once you and your counterpart have both had an opportunity to regain composure.

Listen actively.

Active, attentive listening enables you to ascertain your counterpart’s wants, needs, goals, and any other relevant information s/he may have to offer. It also allows you to hold h/er accountable for any changes in h/er position that you haven’t acknowledged or agreed to. Your priority in negotiations should not be to catch your counterpart off-guard, to exert control, or even to “win”. Rather, your main aim should be to safeguard your own interests with an approach that emphasizes listening, critical thinking, and strategic dialogue.

Seek out common interests.

Ultimately, the goal of all parties to a negotiation is the same: to obtain something they desire, while sacrificing as little as possible. Because desirability is partly subjective, successful negotiations among equal partners can often result in a “win-win”.

A sure way to achieve real, substantive progress in a negotiation is by focusing on shared interests and ambitions. Once you know where your common interests lie, you will find it easier to iron out the details of any compromises that may be necessary.

Ways to Save On Startup Legal Fees

If you're starting up a business there will come a time when a good lawyer will be your best friend. However, that doesn't mean you need to utilize their bill-by-the-minute services for every legal decision you make. There are ways to avoid legal fees. Consider these options:

Go Boilerplate

If you've ever signed a renter's agreement for an apartment you were probably using a boilerplate contract. This is a template agreement already drawn up by a lawyer and is readily accepted by both sides. You might find that many of business contracts can use boilerplates that are available for free on many online legal resources sites. These contracts can include:

• Commercial building lease agreements
• Employee contracts
• Vendor agreements
• Non-disclosure agreements

Just because you're using a boilerplate contract doesn't mean you can't put in your own terms, dates and names. That's what these contracts were created for. Here's a dirty little secret: You know that expensive lawyer you hire to write up your contracts? They use the same boilerplates. You didn't think they wrote every word of a new contract did you?

Ask For a Fixed Fee

Much like the boilerplate contracts, there are also boilerplate services. Filing for a trademark or setting up a corporation are pretty much routine. The only changes that are made are the names in each of the contracts.

Does this mean you should be paying a lawyer by the hour to get those papers in order?

Not at all.

Ask around and see if you can find a lawyer to handle those kind of for a fixed fee. That means whether it takes them two or 20 hours it will only cost you one price

.

You could also offer stock options in exchange for legal services. The caution with that is giving away too much for the kind of "simple work" mentioned above. Your new investors might not be happy about that.

And, if you want to avoid hiring a lawyer for basic corporate services, consider using a document filing service (like CorporationCentre.ca!) to submit your paperwork at a much smaller fee than a lawyer may charge.

Part-Time Lawyer

You might find that after your initial start-up filings you don't need a lawyer all that much. However, you're now stuck paying a hefty monthly retainer to a law firm. Not a wise move.

Instead, look for a firm that can provide you with a part-time attorney. This is someone you can talk to once a week for a reduced fee. Save up your questions and make that weekly meeting count. You can also look into legal insurance. You pay a small premium in exchange for getting a lawyer only when you need them. That's a lot less than the big retainer fee.

If you should ever come across a complicated issue with taxes or find yourself being sued then you don't want to turn that into a DIY legal matter. Get a good lawyer on your side. For everything else, look for flexible options from your legal firm.

How to Do Business in China

Looking to expand your business? You might want to look to the Far East - as in China. There is a groundswell of eager Chinese consumers with money to spend. As the middle class expands they'll be looking for the same types of products and services as every other group of middle class workers around the globe.

How can you break into the Chinese market? It's going to take a little groundwork and investment.

Here's what you need to think about to do business in China:

Get the Lay of the Land

You really can't just drop your products into China and expect them to sell. You'll first want to explore the country.

Don't worry about seeing it all. Stay focused on the urban centers where people are spending their money. The language barrier could be a huge hurdle but it is easy to overcome. There are many locals who are happy to act as an interpreter. Try going through a reputable service to find someone to take you around. For a few bucks you can also download the iTranslate app on your Smartphone which will get you through the basics in a pinch. If you're really serious about doing business in China you might take a language course. That will show your Chinese counterparts that you're respectful of their culture.

Keep in mind that you're not guaranteed to make a quick buck in China. Build a long-term strategy, with a network of employees, business professionals and consultants.

Find a Trade Show

Just like there are trade shows and expos happening all the time on this side of the Pacific, there will be the same kind of opportunities in China. Depending on your business these could be a perfect way to start building up your new Chinese network of business associates.

Retain a Qualified Lawyer

The Chinese have a different way of doing business. Once you embrace that you should be able to navigate the intricacies of the Chinese marketplace. For instance, the Chinese don't embrace contracts as a legally binding agreement but more of a show of good faith. Does this mean you could get ripped off? Perhaps which is why you want to do your homework before setting up shop in Shanghai. A good lawyer will provide you with the legal backing and advice to help you navigate the business culture.

Work With a Consultant

You might find that a solid business consultant on this side of things can be the best introduction into Chinese business and culture. Once again, because of the many business opportunities happening in China you should be able to find a qualified consultant to help you set up your business. Look for a consulting company with many resources as opposed to an individual. You'll get more bang for your buck that way.

Finding the Right Small Business Lawyer

You need a lawyer. By now you've already embraced that fact as a way of moving your company forward. However, you don’t know how to find the right small business lawyer for your needs. Obviously, asking a friend or business associate for a referral is the best first step you can take. Just because someone you trust recommends an attorney, doesn't automatically mean that attorney will be a perfect fit. Here's what you need to think about when interviewing potential business lawyers:

Fees: Clearly, you need to know how much your new lawyer is going to cost you. Will there be a fixed retainer or will they bill you by the hour? Is every quick phone call going to cost you big bucks? Yes, you should look for fair rates but keep in mind that a lawyer with a hefty hourly billing rate might be a better investment. That's because with experience comes higher fees. That experienced lawyer can finish an assignment in a couple of hours while the new lawyer might take several days. What would you be saving then?

Attention: As a small company you might have small issues to deal with at first. Will your new lawyer devote the same level of attention to your concerns as they would to a bigger company? They'll probably tell you that won't be a problem. Yet, if you discover you're not getting the attention you need then it might be time to change it up.

Return Call Rate: Coinciding with the amount of attention you'll receive will be the return call rate. How fast will your lawyer get back to you? If you're waiting a day or more then there are some problems you need to work out.

Patience: You're not a lawyer otherwise you could handle your own matters. Will your new lawyer have the patience to explain the legalese to you? You should never feel like you're asking silly questions and your lawyer should have the ability to walk you through complicated contract issues.

Focus: You'll be able to tell a lot about your new lawyer by the way they handle that first interview meeting. Are they constantly being interrupted by calls? Are they checking their Blackberry for emails? If they can't focus on a simple meeting how do you think they can handle the big stuff? Are you being too demanding asking for their undivided attention? Absolutely not. That's what you're paying for.

Excitement: You're not going into business with your lawyer but that doesn't mean they can't be passionate about what you're trying to accomplish. Are they excited to work with you? They should be! 

How to Deal With Freelance Employee Contracts

Today, every online business has the potential for global reach. On top of selling products to customers around the world, we can also hire people to work for us, regardless of their location!

Freelance employees can fill the gaps needed by a company who require to have temporary or short contract work completed within a specified timeframe. Even though a freelancer can work for your company for several years, it doesn't make them a full-time employee that gets all the perks. The freelance worker is typically someone who might be working offsite and easily reachable online. That means the company doesn't have to expand their office space to assimilate more workers.

It's a win/win all around.

Types of Freelance Workers

Before you consider hiring a freelance employee, you'll need to understand the different types of workers and the contracts required. The different categories of freelancers are:

Independent Contractors: The United States Internal Revenue Service describes independent contractors as someone that you as the employer, "have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result." In other words, you assign an independent contractor a task and how they accomplish that task it up to them. They could work on it at midnight or 3:00 p.m.

On-Call Workers: These types of freelancers are called upon only as needed. When a company has an overflow of work that won't require a lot of training, they will use an on-call worker.

Temporary Help Agency Workers: These would be workers hired and paid by a temp agency. As the employer you would pay the temp agency to handle all the screening and interviewing. Basically, you tell the temp agency what you need and they send the employee to you.

Contract Firm Workers: These are workers who are provided by a company contracted specifically for that task. For instance, there could be contract workers as SEO contractors, customer service agents or even social media consultants. For the most part these workers will already be trained in the job. Often contract workers are hired in groups as opposed to the single temp agency worker.

Contract Stipulations

It is vitally important that every type of freelance worker you hire sign a contract. Included in this contract are the specific duties you will require from them, their compensation and deadlines.

Most importantly, you also have to spell out ownership of the actual work. If you hire a freelance graphic designer to rebuild your website, you will own what they create. It can't be used by another company. There are also confidentiality agreements and delivery terms that should be spelled out in the contract. No work should begin without a contract being signed by that freelancer.

How to Reduce your Legal Fees

As professions go, lawyers are probably among the most maligned out there. You definitely want a "barracuda" on your side but the moment an attorney starts serving you papers they become the bane of your existence.

If you're in business, you need a lawyer. Hopefully it will only be for the start-up and lease negotiation process and not defending you in a lawsuit.

Even with the simple contract work, legal fees can take a huge chunk out of your bottom line.

How can you reduce your legal fees? Consider these ideas: 

1)  Be clear on what you’re paying for

Before entering into any arrangement with a lawyer you should understand their billing practices. Instead of billing for every piece of work on an hourly basis, your potential attorney could work on a flat fee. This is a good arrangement especially if you are looking for contract review and not a lot of back and forth "fixes."

Understanding what you're paying for also means going over your bill every month. If something doesn't look right, ask your attorney for clarification.

Make sure to keep track of your own contacts with the lawyer to compare with the bill.

2) Think before you call or email

Having a lawyer at your disposal is a bit like living with a doctor; you just can't resist the urge to ask about every question that pops in your head. Just know that with a lawyer you're going to be billed for every phone call and email that you send.

Even if it takes them 30 seconds to respond, they're going to charge you at least a quarter of an hour.

All of this means to plan before you communicate. You might be able to answer your own question and save yourself some bucks.

3) Do some of the work yourself

Always keep in mind that lawyers will bill for everything. Reduce costs and time by making copies and delivering documents on your own. Also, try to respond in a timely manner whenever your attorney requests information. If they have to keep reminding you to submit something, that will be another charge.

4) Don't hesitate to shop around

Nurture a great working relationship with your lawyer. It could make all the difference. However, if you find them doing the kind of basic work that any decent attorney could do, you might be well advised to shop around. Find out what other attorney's are charging. Ask your friends who they use. Remember that the lawyer is working for you!

Reverse Takeovers - Evaluating a Possible Alternative to the IPO Exit Strategy

From the very first business contract there were loopholes. These are ways around a particular rule or guideline that offer a more desirable outcome. It isn’t breaking the law, but coming up with an alternative approach.

That’s the best way to describe a reserve takeover: it’s a loophole to expedite the IPO strategy and provides a viable alternative for private companies to become publicly traded companies without a lot of hassle.

The Basics of a Reverse Takeover

In a reverse takeover, a private company buys controlling interest in a publicly traded company. The private company then merges with that public entity and in effect becomes a publicly traded company. The original public company is known as a shell company. That’s because all that really exists is the organizational structure and all that comes with that in terms of approved documents, corporate filings and other paper work.

The shareholders who are part of the private company assume a majority stake in this shell company and thereby are granted controlling interest. If the shell company is in compliance then this type of transaction can be completed in a matter of weeks as opposed to months (or years) following the normal course of filing for an IPO. There needs to be due diligence in terms of the proper disclosure forms filed once the merger has been enacted.

The Pros of a Reverse Takeover

On the top of the list of benefits of a reserve takeover is the potential for bigger earnings. The contributing factor is because there is less stock dilution than with a traditional IPO. There is also no need to raise capital as you would with the former IPO which makes this an affordable and streamline process.

The reverse takeover is often less beholden to the fluctuating and sometimes volatile market conditions. Even the hint of a bad review or negative earning potential can send a stock plummeting. That is not something you want released on the day of your IPO offering.

Look no further than the IPO offering of Facebook for a perfect example of this.

Finally, because a reverse takeover is less time consuming, the private company in play can focus on their business instead of all enormous “to-do” list required to get ready for a standard IPO. In the long run that’s going to be good for business all around.

The Cons of a Reverse Takeover

Think of a reserve takeover as moving your business into an established warehouse building. There might be some problems with that “warehouse” that could impact your business. The shell company might have some sloppy bookkeeping practices or pending lawsuits.

 There might even be some greedy shareholders who want to dump their shares right out of the gate. That could impact the offering. This can be avoided with a share lockup put into place before the merger.

There is also a huge learning curve for a private company to go through once it enters into the world of a publicly traded company. Sometimes those board members aren’t ready for the new game.

Is a reverse takeover right for you?

Prepare your Shareholders Agreement

Protect the future of your corporation with a Shareholders Agreement*

One of the first steps after forming your corporation is to decide how your business will be operated and managed. For corporations that have 2 or more shareholders, ground rules should be laid out from the start to ensure that your business maintains good corporate governance. These rules are generally set with a Shareholders Agreement.

So, from November 9th to the 11th CorporationCentre.ca is reducing the price of our Shareholders Agreement from $99 to $50 for our valued customers.

Visit our Contracts Page from 9 am on November 9th to 5 pm on November 11th to get your Shareholders Agreement for only $50. The agreement is prepared through our online Easy Contracts system, which builds the document based on the information entered by you. It’s quick, easy and all online!

Click here for a detailed checklist of the information you’ll need to prepare your Shareholders Agreement. Make sure you have all the necessary information to complete the agreement before you begin.

If you have any questions please feel free to call us at 1-866-906-2677, we’d be happy to help.

* Please note that the Shareholders Agreement provided through our system is not intended to replace the services an attorney who can review your particular circumstances and advise you accordingly. We are not a law firm and do not offer legal advice or legal services. This Shareholder Agreement should not be taken to be appropriate for all circumstances. Please note that this Shareholder Agreement cannot replace a lawyer or their advice, particularly in complex or intricate situations or where opposing interests may exist. Contracts are in English only.

Creating a contract - protecting yourself and your business

In business, a well designed contract protects you from any unknown variables, much like an insurance policy. You pay for the policy, hoping that you’ll never have to use it. More specifically, a contract helps you manage and avoid potential risks. Due to the unpredictability of the business world, smart professionals create contracts to reduce any unnecessary costs and minimize all risks.


Why should you use a contract?

A contract is a legal document used between multiple parties to outline a business relationship. The contract becomes valid only when the parties involved agree to the terms and conditions by signing the document. It should detail the:

• expectations of the stakeholders;

• the relationship between all parties;

• the nature of the transaction;

• and the next steps of the relationship including any recourse in case of disputes.

It is often used for:

• During the hiring of freelancers/vendors/suppliers

• During the purchase of goods or services

• Real estate transactions

• Business partnerships

• Non-compete, non-disclosure or confidentiality agreements

With a contract between parties, all issues can be outlined in detail, thereby avoiding any problems that may happen in the future.

Things to be aware of in creating a contract

Don’t be vague, make sure the contract is detailed – The ideal contracts are detailed and focused. Make sure that the terms and conditions are simple, specific, and that avoids any uncertainty. The more specific you are in your expectations or terms, it becomes very clear on what is to be done by all parties and by what time.

Identify all concerns you have – Make sure that all your concerns are outlined and are answered. You don’t want to find out the hard way in a situation that could have been avoided.

Understand the laws – Make sure that you know your provincial and even local laws that can affect the contract. This is especially true for any real estate transaction where the laws change by province. It is best to consult a lawyer who is knowledgeable about your industry and can advise you on the proper stipulations.

Review the contract with a lawyer - Never sign the contract until you’ve gone over it with a lawyer. Many people make the mistake of only going to the lawyer after the agreement has been signed or when a problem came up.

A contract is meant to be used as a way to protect yourself and facilitate any business transaction. It creates a common platform from where all parties can move forward in consummating a business relationship. It also is used to protect yourself from any harm or legal problems and can be one of the best decisions you’ll make for your business.

Tips for MBA's Seeking Work in Canada

It's not easy. There's a lot of competition out there, and every unemployed MBA, whether recent or not, is looking for a job. What's the best job search strategy?

Recruiters and career experts offer the same advice to job seekers. Analyze your strengths and focus on your interests. Being an all-around expert in everything will work against you. Have a clear-cut idea of how to best sell yourself. Also, while you're still in school, start making connections. Long before graduation is the time to start developing your network of contacts. Let the business world know who you are and what it can expect down the pipeline. You want business to be waiting for you.

Don't be overly picky. As small, temporary jobs and internships come your way, take them. Each job affords you additional experience and contacts, both of which are vital down the road.

Another avenue to follow is temporary contracts. With a growing number of entrepreneurs starting businesses in Canada, many are seeking business consultants to help them in their start-up ventures. However, while ideas abound, money doesn't. Many cannot afford to hire "top" consulting firms and would rather pay less for younger talent. While these contracts will rarely offer job security to a young MBA graduate, it will help establish credentials and afford opportunities to gain vital hands-on experience.

Current MBA graduates should be aware that patience would have its rewards. A large segment of today's senior management is at the front end of the baby boom generation. Many will be retiring over the next decade, making way for the next generation to make its mark on the business world. Therefore, the time is right for "the next generation" to gather experience and be ready and waiting for the opportunities that are just around the corner.

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