How good are you at negotiation?
The ability to negotiate successfully in today's turbulent business climate can make the difference between success and failure.
Some negotiations are small, like securing the best price on printing your letterhead and business cards. Others are far bigger deals that can make or break your start-up business from the outset. Sometimes you are the buyer; other times the seller. Either way, the skills you need to be a good negotiator are the same.
For some small business owners, it comes naturally. They’re the ones who started negotiating an allowance and extra TV time with their parents at age four. For most of us, however, it comes through effort and experience. Rarely is it something you learned as part of a formal education. Successfully negotiating to achieve your goals requires thought and practice.
Tips on how to get the best deal
1. Connect at a personal level
Human connections are paramount in negotiation. Your attitude and energy going in will set the tone and affect the outcome. It all starts with a mindset. You need to set aside the idea that negotiation is a contest between two parties and realise that you’re working with a person across the table. Keep in mind the language, both verbal and non-verbal. You can use words like long-term to convey a sense of common interest and lasting value and keep your body language relaxed.
2. Now the person who you’re dealing with
Know what the other side wants. Know their needs and motivations. To achieve this, you need to do your research and ask questions. Don’t assume that they are just like us and that their internal logic is the same as yours. If you understand where they are coming from, you will be better prepared to adapt to the dialogue as terms change.
3. Disclose as much information as possible
Open up and share as much information as possible with your client and give them the full scope of your thinking. Details also show credibility. It shows that you’ve done your homework and have thought things through. Anticipate the questions and ensure that the disclosures are in line with your goals.