Landing your first major contract is a pivotal moment. You've worked hard to establish your company's value and reached a new level to showcase the brand through a retail agreement or supplier contract. The excitement of the moment can quickly give way to stress. A lot is riding on the company's ability to execute the request and deliver on this monumental opportunity successfully.
As a former entrepreneur and now a banker, the best advice I can offer is to fully understand and balance the risks and rewards of accepting this contract.
Related: Don't Let Your Biggest Client Become Your Biggest Nightmare — You Should Fire Them Instead. Here's Why.
When evaluating your first big contract, it's important to understand three things:
Once you've consulted experts and fully assessed the scope of this contract, you can make an informed decision about whether you want to proceed. But remember, never sign on for more than your business is equipped to handle. Failing to execute against the agreement can impact short-term and long-term financial goals, brand reputation and business relationships. I have, at times, advised clients against signing a large contract when it was clear they weren't adequately prepared to meet the obligations.
For example, several years ago, I had a client in the consumer space who was presented with an opportunity to sign a large national contract with one of the biggest retailers in the world. They decided to turn it down in favor of a smaller, regional contract.
Why would someone change the terms of a potentially life-changing contract? It was simple. The business wasn't ready.
My client determined they did not have the infrastructure — including systems, suppliers and people — to support the national contract requirements. Instead, they decided to start the relationship on a smaller scale and use that opportunity to build the pieces they needed to succeed in the long run. Today, my client is excelling in a long-term, national partnership with that major retailer, enjoying success that may not have been realized had they tried to take on too much too soon.
Related: My Startup Scored a Multimillion-Dollar Contract With a Fortune 100 Client in Just 3 Years. Here's What We Learned.
Once you've committed to pursuing the contract, you can engage your legal team to negotiate terms.
As you're negotiating, don't lose sight of the client management. This contract marks the start of a new and important partnership for your business. To forge a strong client relationship:
You've assessed the risks and signed on the dotted line. Take a moment to enjoy this milestone with your colleagues and partners. What was once a dream is now part of your success story.
Leverage this business momentum and consider these guiding principles to keep building:
The success of your first major contract serves as a testament to your capabilities as a business leader and a strategic step toward sustained growth. Remember this advice, continue to embrace excellence and watch your business soar.
You've Landed Your First Big Contract. Now What?
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22.01.2024
Landing your first major contract is a pivotal moment. You've worked hard to establish your company's value and reached a new level to showcase the brand through a retail agreement or supplier contract. The excitement of the moment can quickly give way to stress. A lot is riding on the company's ability to execute the request and deliver on this monumental opportunity successfully.
As a former entrepreneur and now a banker, the best advice I can offer is to fully understand and balance the risks and rewards of accepting this contract.
Related: Don't Let Your Biggest Client Become Your Biggest Nightmare — You Should Fire Them Instead. Here's Why.
When evaluating your first big contract, it's important to understand three........
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