What do you do if your business deals require effective negotiation skills?

1 Know your goals and priorities

Before you enter any negotiation, you need to have a clear idea of what you want to achieve and what you are willing to compromise on. This will help you set realistic expectations, avoid getting sidetracked by irrelevant issues, and focus on the most important outcomes. You should also research the other party's goals and priorities, so you can understand their perspective and find common ground.

2 Build rapport and trust

Negotiation is not only about logic and numbers, but also about emotions and relationships. You need to establish a positive connection with the other party, show respect and empathy, and demonstrate your credibility and integrity. You can do this by using active listening, asking open-ended questions, acknowledging their concerns, and sharing relevant information. Building rapport and trust will make the other party more receptive to your proposals and more willing to cooperate.

3 Use effective communication techniques

Communication is the key to successful negotiation. You need to convey your message clearly, concisely, and confidently, using verbal and non-verbal cues. You also need to pay attention to the other party's signals, such as their tone, body language, and facial expressions. You can use effective communication techniques, such as framing, mirroring, summarizing, and reframing, to reinforce your points, clarify misunderstandings, and address objections.

4 Be flexible and creative

Negotiation is not a zero-sum game, where one party wins and the other loses. It is a collaborative process, where both parties can benefit from finding mutually acceptable solutions. You need to be flexible and creative, and avoid getting stuck on your initial position or proposal. You can explore different options, trade-offs, and alternatives, and look for ways to create value for both sides. You can also use techniques such as anchoring, splitting the difference, and bundling, to adjust your offers and counteroffers.

5 Know when to close and when to walk away

The final stage of negotiation is closing the deal. You need to know when to stop negotiating and when to seal the agreement. You can use trial closes, such as asking for feedback, opinions, or preferences, to test the other party's readiness and willingness to commit. You can also use positive reinforcement, such as highlighting the benefits, incentives, and urgency, to motivate them to sign. However, you also need to know when to walk away from a deal that is not in your best interest or that violates your principles. You can use your BATNA (best alternative to a negotiated agreement) as a benchmark to evaluate the deal and decide whether to accept, reject, or renegotiate it.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?