Negotiation Tips For Business Owners.
Negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution. It is important to note that in business, negotiation skills are important in both informal day-to-day interactions and formal transactions such as negotiating conditions of sale, lease, service delivery, and other legal contracts.
Good negotiations contribute significantly to business success. Below are few negotiation tips for your business.
Negotiation Tips For Business Owners
Be Prepared :
- Certainly, you should research the business and individuals you are meeting; their social media profiles, website etc.
- Review the offer provided by the other party. Evaluate it and determine if it is worth a negotiation.
- Have your negotiation plan ready – including offerings and pricing from competitors of the party you are negotiating with.
Optics is very important
- It is important to share information about yourself.
- Seating arrangement is important – choose the optimal chair.
- Tell stories.
- Offer a hot drink.
- Listen for both verbal and non-verbal language.
- Carefully watch the other party’s body language. If possible, delegate someone on your team to watch the other team closely.
- Be punctual – it is a huge sign of respect.
- Be professional and courteous.
- Also, don’t be aggressive in speech.
- Respect Diversity and Inclusion differences – culture, religion, language, communication styles, etc.
- For example, a man should be careful before extending a handshake to a Hijabite . Chinese use meetings for information gathering and expect decisions to be made off-line.
Ask probing question
- Try to gain an understanding about what is important to the other side, what limitations they may have, and where they may have flexibility.
- Refrain from talking too much.
Be ready to walk away
- Be ready to walk away if key terms of the deal aren’t to your liking.
- Always have the following before the negotiation.
- ZOPA – Zone of possible agreement.
- BATNA – Best Alternative to a Negotiated agreement.It means “What would you do if you weren’t able to agree a deal with your negotiation counter party?”
Think outside the box
- The deal/solutions may not always 2 or 3 dimensional as you think. There may be more solutions than initially proposed.
- Avoid ‘split the difference’ tactic.
Time is the enemy of many deals
- Understand when time is on your side and when time could be your real enemy.
- Rule-of-thumb: The longer a deal takes, the more likely something will occur to derail it.
Thank you for reading. Should in case you have any question, please don’t hesitate to ask in the comment section and also share this with friends and loved ones.