7 Steps to Succeed in Your Business Negotiations

Negotiations are crucial in every business. Whether you’re running a company or seeking funding for your startup, the ability to reach agreements is essential for success.

Many people feel uncomfortable during negotiations and conflict. As a result, they default to remaining silent, agreeing to unfavorable terms, or responding aggressively. With the right negotiation mindset and skills, we can improve our responses to these situations, resulting in increased confidence and more agreeable outcomes. ?

Learn to master the art of business negotiations with these seven tips:

1. Prepare

In every negotiation, there are many elements that you cannot control or predict. For example, you don’t know how your counterpart will show up, their mental state, or how they will react to what you say. You constantly need to adapt and be agile on a negotiation table, and the first step is to go in prepared.

There are three levels of preparation to consider:

1. Prepare yourself: Most people don’t realize that in every negotiation, you need to deal with yourself first. Work on developing self-awareness to assess your physical, mental and emotional state. The ability to remain calm in stressful situations is a superpower that very few master.
2. Prepare for the situation: Analyze the market, the subject of discussion and think of possible outcomes and viewpoints that may come up.
3. Prepare for your counterpart(s): Research who they are, who they know, and what they value.

2. Know your needs

Many people start a negotiation without thinking about what they truly need. This is dangerous because your ego can take over and ruin the deal and relationship. Knowing your needs makes it easier to define your non-negotiables and ideal outcomes. Now that you have defined your negotiation playing field, be prepared to walk away if your non-negotiables aren’t being respected.

3. Build a bond

Before diving headfirst into the negotiation, start by building a bond. Reach out to your counterpart(s), show genuine interest in the people at the table, and try to have a conversation about anything but the conflict situation. Building rapport will help establish trust that will serve you in the negotiation.

4. Negotiate the negotiation

This crucial step is often overlooked, which results in wasting time and creating unnecessary stress. Before starting a negotiation, ensure everybody is clear on its purpose, timing, location, participants, and deadline. Many deals that can be finalized within weeks go on for several months or even years because these steps hadn’t been agreed upon in the beginning.

5. Listen

When we talk, we repeat what we already know. But when we listen, we gain new information. We negotiate to discover if we can turn a disagreement into an agreement. The only way to reach an agreement is to understand what your counterpart needs and is willing to agree on. Listening allows you to discover what that really is. Create a space for your counterpart to open up and share information with you. Ask good questions and be attentive to absolutely everything and everyone. Actively listen to what is being said and how it is being said. Be genuinely curious and willing to understand what truly matters to everyone involved. This might seem simple, but it takes focus, empathy and well-developed listening skills.

6. Have a win-win mindset

You might think a win-win outcome means cutting the pie in half, making concessions, or accepting things you don’t want – but that is a win-lose. A true win-win mindset means aiming to reach an agreement that satisfies the needs of all parties, where everyone feels respected and heard. When we walk away satisfied with what we said, how we said it and what we agreed upon, it creates a sense of commitment towards implementing the terms of the final agreement.

Often, people work hard to reach an agreement, only to see that it is not being implemented. Take our world leaders’ peace or climate talks – they are the perfect example of how an agreement without action is worthless.

Remember that in every conversation, your reputation is at stake. You don’t want to be known as the negotiator who always tries to have the last word or the last dollar. Think long-term and let your counterpart leave the table with a smile, wanting to negotiate with you again in the future.

7. Aim to become a better negotiator

Negotiation is a complex art and science. It is not about negotiating better; it is all about becoming a better negotiator. That means, wherever you are, whomever you’re negotiating with, you do it while respecting your values. This takes experience and expertise. It takes humility to realize that we can improve ourselves and acknowledge that we are never done learning.

I am passionate about helping people become better negotiators. I truly believe that we make the world a better place when we resolve conflict through negotiation. We build stronger relationships. We stand up for what we believe in. With the right balance of empathy and assertiveness, we reach mutually beneficial agreements.

Imagine a world where people had strong negotiation skills: empathy, listening, a true win-win mindset, confidence and respect. We would have fewer conflicts and less stress. We owe it to ourselves and everyone around us to become better negotiators, and thus better people – who resolve conflict peacefully.

* This article was originally published in Aspire Magazine