Negotiation is possibly the most important skill any business person should master. It may appear to be something of a mysterious black art but it is in fact an activity everyone takes part in every day. This skill is particularly important to the small business owner who may be relying on a certain outcome for the success of their company.
Negotiating successfully will assist in building client and supplier relationships. If handled properly the other party will be happy to return to the table in the future to negotiate further. A negotiation should be viewed as an opportunity to expand your network and partner with other businesses for mutually agreeable benefits.
- Top goals
Before any negotiation you need to know what outcome will make you happy. You should take time to evaluate your company and analyze short and long term goals. These goals must be realistic. Rank these goals into their order of importance and decide which parts are essential and which are just desirable. Without a list of goals you won’t be able to land a good deal. Think in the best interest of your enterprise and prioritize. It’s a sure way of guaranteeing that your company can thrive.
Research provides you with knowledge which gives you power in a negotiation. If you have looked into similar deals and are aware of the figures to back these up then you will be able to use the same arguments to establish your case. Not only will these show the other party that you know your facts, it will also provide you with confidence in your negotiation.
- It’s impossible to have everything
You must know what is essential to you and your company and what you can afford to give up or delay on. This way you will know what you are really negotiating for and which aspects can be let go off in the spirit of compromise.
- Be able to walk away
It doesn’t matter how desperate you are for a deal to work out, there has to be a point where it is simply not worth it. You need to know what the lowest offer is that you are willing to accept and then have the courage to walk away. You should remain polite at all times and have confidence that you can get a deal somewhere else.
- Your opponent’s history
Studying your opponent, their past performance and outcomes are important endeavors you have to consider. If possible, find out some more personal information as well. This will put you in the stronger position. You will be able to enter the negotiation knowing that your offer comes from the same angle as previous offers they have accepted. This is definitely more likely to result in a successful negotiation.
- Potential outcomes
Think through as many scenarios as possible and make a note of the outcomes in each of these scenarios. Then try to establish what solution might make both of you happy. Practicing this will assist with your sideways thinking in meetings and you may well discover common ground or an agreeable midway point.
- Assessing available resources
It is always useful to evaluate your company’s position and what resources are available. Before a negotiation, look at these resources and how they might assist you in obtaining what you want from the negotiation. You may well find that the other party could do with additional exposure and your marketing could be a in a good position to secure this. Not only will this technique provide a greater chance of a successful negotiation it may also gain you a customer. This will place you in the stronger position at the start of the negotiation.
These 7 negotiation tips are infallible, and they will always work in the business environment. Cracking a business deal is not something impossible to do, provided that you know everything there is to know about your company and about your opponent’s company too. The more information you know, the highest chances to have to benefit from a successful business venture.
By Davis Miller and TheGapPartnership.com!