How to Get Corporate Contracts for Your Business

Key Takeaways

• Corporate contracts are essential for business growth and stability, especially when partnering with large enterprises.
• Understanding contract types and tailoring proposals to specific company needs increases your chances of success.
• Certifications, legal due diligence, and risk mitigation strategies are critical when dealing with corporate clients.
• Leveraging legal expertise and maintaining detailed documentation will support enforceability and negotiation leverage.
• Relationship-building and maintaining compliance with evolving regulations is key to securing and sustaining corporate contracts.

Learning how to get business contracts is essential to a business's survival. When small businesses get clients that pay well for their products and services and are repeat buyers, it can strengthen the business and keep it running. 

While landing a big contract to make you a supplier for a large Fortune 500 company can be a dream come true, obtaining those orders and contracts can require a lot of work. Both male- and female-owned small businesses have seen a sharp jump in revenue within two years or less after adding a significantly large company to their clientele.

What's great news is that larger companies in the United States are looking to make more purchases and increase their overall business interaction with small businesses, including those owned by women, minorities, and veterans. Starting in 2012, major corporations like Walmart, Macy's, IBM, and many others have made public announcements that they intend to spend more dollars with small businesses.

Tips for Landing Those Big Contracts

While landing those large contracts for the first time can be a long road for small businesses, it is definitely worth the effort. Some tips small businesses should remember when working on supplier contracts with larger corporations are:

• Do you research before you approach a larger corporation:  While there only 18,000 companies in the United States that employ more than 500 employees, they generate almost 60 percent of all American companies' revenue. These corporations can be difficult to approach and even harder to get in with, so it is important for you to know the ins and outs of the company and what you can offer before you set up an appointment.
• Don't expect a contract on your first try:  Many large corporations will open their doors for small businesses to bid on contracts but don't get discouraged if you don't get a contract on the first try. It will often take repeated attempts to convince the corporation that you understand its needs and culture and can bring value.
• Let them know why your company is special: There are many companies that will vie for a corporation's contracts or business. So to set yourself apart from the pack you will need to let the decision-makers know what makes you or your company unique or special and how that can benefit their business.
• Don't make promises you can't keep: While businesses want you to tell them how you can benefit their company, they expect you to deliver on your promises. If you are not sure if you can accomplish something, do not mention or propose it. You never want to overpromise and underdeliver.
• Consider teaming up with a pro for the first go-round - Large corporations like the stability that working with another large company can provide. To give yourself a little more weight when pitching your business, consider teaming up with a larger company that can help you get in the door and show the corporation that you are reliable and dependable. After you deliver on the first contract, the corporation may trust your company with a contract of your own.
• Obtain any certifications the corporation may be looking for: Many corporations require bidding companies to have certifications linked to the specific goods or services. Having these certifications will not only help you check the boxes when bidding, but also give you additional expertise in your particular business area.
• Start with local companies: Start your search for that large client close to home. Some larger companies like having local suppliers because it allows them to be more available and provides them with more control over the contract. Additionally, some large corporations would prefer to throw their support behind local small businesses as a way to give back to their local communities.
• Create your own personal brand: A successful branding strategy can help your business stand out while providing an air of credibility and establishing a more professional vibe. Also, having a consistent look and brand may help a corporation keep you in mind longer and may help you stand out from other businesses.

Best Practices for Managing Corporate Contracts

Managing contracts properly after securing them is vital for long-term success:

• Use Contract Lifecycle Management (CLM) Tools: Automate document storage, reminders, renewals, and compliance tracking.
• Establish a Clear Point of Contact: Assign an internal contract manager or liaison for ongoing corporate communication.
• Track KPIs and Deliverables: Regularly monitor performance against milestones outlined in the agreement.
• Conduct Periodic Reviews: Reassess contract terms annually to ensure they still serve your business and legal needs.
• Document Everything: Keep comprehensive records of communications, updates, and performance reports​​.

How to Strengthen Your Corporate Contract Proposal

To increase the likelihood of winning a corporate contract, tailor your proposal strategically:

• Highlight Industry Experience: Showcase past success stories with metrics (e.g., “Reduced client’s costs by 30% over 6 months”).
• Present Custom Solutions: Demonstrate your understanding of the corporation’s specific pain points and how your offering addresses them.
• Offer Flexible Terms: Be open to negotiated timelines or service delivery structures to appear adaptable.
• Include Client Testimonials or Case Studies: These build credibility and show you’ve successfully executed similar projects.
• Detail Your Internal Processes: Transparency in workflow, compliance, and quality control gives large corporations confidence in your capabilities​​.

Risk Management in Corporate Agreements

Risk mitigation is a cornerstone of negotiating successful corporate contracts. Consider the following:

• Insurance Requirements: Some contracts require specific types of business insurance, such as general liability or errors and omissions (E&O).
• Performance Clauses: Define remedies for missed deadlines or underperformance, such as penalties or cure periods.
• Force Majeure Clauses: Protect both parties from liability during unforeseeable events like natural disasters or pandemics.
• Exit Strategies: Ensure that you can terminate the agreement without substantial losses or legal entanglements.
• Regular Audits and Compliance Checks: Maintain oversight to confirm both parties are fulfilling obligations​.

Legal Due Diligence Before Signing Corporate Contracts

Before signing a corporate contract, conduct due diligence to avoid costly legal pitfalls:

• Review Key Terms Thoroughly: Ensure clarity on deliverables, payment terms, liability limits, and termination clauses.
• Compliance with Regulations: Confirm that the contract adheres to federal and state laws, especially for data protection, employment, and taxes.
• Evaluate Dispute Resolution Clauses: Check whether arbitration, mediation, or litigation is mandated and assess the jurisdiction.
• Confirm Intellectual Property (IP) Ownership: IP clauses should clearly state which party retains rights to innovations, processes, or deliverables.
• Understand Indemnity Clauses: These allocate financial responsibility in the event of legal claims or third-party losses​​.

Common Types of Corporate Contracts

Understanding the types of corporate contracts can help tailor your approach when engaging larger clients. Common categories include:

• Service Agreements: Define the scope and quality of services delivered between companies.
• Supply Contracts: Used when a business provides goods on a regular basis to a corporate client.
• Non-Disclosure Agreements (NDAs): Protect sensitive business information during negotiations and partnerships.
• Employment Agreements: Essential for onboarding executives or specialized staff for contract-specific roles.
• Joint Venture or Strategic Alliance Agreements: Outline shared responsibilities, profit distribution, and governance for collaborative projects.
• Franchise Agreements: Allow a business to use an established corporate brand while adhering to operational terms.
• Licensing Agreements: Grant usage rights for intellectual property, such as software, patents, or trademarks​​.

Frequently Asked Questions

1. What are corporate contracts?
   Corporate contracts are legally binding agreements between a business and a corporate entity that outline the terms of services, goods, or partnerships.
2. How can small businesses compete for corporate contracts?
   By obtaining certifications, building a strong proposal, demonstrating value, and sometimes partnering with larger firms, small businesses can gain a foothold.
3. What certifications are helpful when applying for corporate contracts?
   Certifications such as Minority Business Enterprise (MBE), Women-Owned Small Business (WOSB), and ISO standards are often valued by corporate buyers.
4. Are NDAs always required in corporate contracts?
   Not always, but NDAs are commonly used when sensitive information or proprietary methods are disclosed during negotiations.
5. How can I ensure my contract is legally sound?
   Work with a legal professional to review the contract terms, verify compliance, and clarify intellectual property and liability clauses.

If you need help with how to get business contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.