Negotiation is an essential aspect of every business deal. Whether it’s managing employees, dealing with suppliers, or contracting with prospective customers, all these functions require an excellent negotiator. The success of a business directly depends on the ability or inability of the owner to negotiate. This article will share negotiation tips to help business people prepare for every transaction, deal, and agreement.
1. Have A Goal
Entrepreneurs won’t get what they want from the other party if they don’t know what they want for themselves. Business owners should have a well-defined goal before stepping their foot in the negotiation room. According to a renowned business consultant, Andrew Napolitano, a negotiator should consider what it will take to satisfy their objectives, interests and needs.
2. Develop A Plan
After determining what they want, entrepreneurs should create a strategy to achieve their business objectives. Before tabling their first offer, a negotiator should consider where they want to start and when to close the deal. They should not be afraid to say “No” when most of their interests don’t get satisfied.
3. Understand Other Party’s Needs and Tactics
There must be two parties for a negotiation to take place. A deal is sealed when both parties feel that some or all of their interests are satisfied. The other party also has concerns and motivations. Therefore, business people should aim to ask open-ended questions to understand their negotiating partner’s needs and expectations.
4. Listen Attentively
The only way to understand the other party’s tactics is to be an empathetic listener. If need be, entrepreneurs should enrol for an online public speaking course to learn listening skills. This way, they will understand what motivates the other party and focus on finding a solution.
5. Treat Your Negotiating Partner as A Friend, Not an Enemy
Businesspeople should be friendly to their negotiating partner. Andrew Napolitano sensitizes that the other party has the power to persuade their colleagues to accept a deal or sink it. Good negotiators don’t scream at the other party. Screaming makes the environment unconducive for successful joint problem-solving.
6. Share Information, Don’t Intimidate
Entrepreneurs should prepare to explain, convince, and justify why the other party should agree to their proposal. They should help the negotiating partner understand a proposal without intimidating them.
7. Practice Patience
Even when they feel annoyed or disadvantaged by the other party’s suggestions, business owners should remain calm. They shouldn’t get impatient and angry if the first offer they get is not what they expected. Treat the unpleasant offer as one of the several others in the negotiating process. Being calm and taking things slow creates momentum, which can lead to an agreement.
8. Think About the Consequence of Not Reaching an Agreement
Examine the positive and negative things that could happen if there is no agreement. Is it better to “walk away” from the negotiating table rather than accept unsatisfying terms? Is the deal too urgent that it has to be made now? These are some questions people should ask themselves when going to a negotiating table.
9. Be Creative and Flexible
People shouldn’t be too rigid. After all, they can’t always get what they want. In negotiations, it’s prudent to have a fallback position. Business owners should be imaginative, persistent and patient to get what they want. If they don’t get all that they want, they should consider other alternatives that satisfy their needs as well as those of the other party.