Just discovered a great article Kiss of Death – Contract Provisions Entrepreneurs Should Avoid at All Costs about dealing with Big Companies from InfoChackie.
Big companies can be extremely tempting to deal with. They’ve got lots of money, they validate your business idea and you know it sounds great to brag about signing a deal with company X.
However as Uncle Saul says beware. Big companies are often run by all kinds of internal politics and have bureaucracy’s you couldn’t imagine. I have personally seen many small companies die because they either were desperate to sign a deal with a Big company or actually did and then got screwed.
That said, if you manage it right. Keep the control on your side and know when to cut your losses there are lots of opportunities for the smart entrepreneur. Uncle Saul describes in detail the contract negotiation part, which really is the single most critical part of dealing with these kinds of companies.