How to Negotiate in Business

“Today in business you don’t get what you ask for – you get what you negotiate.”  For some people, negotiating is second nature but for the rest of us it may not be.  It’s essential to carefully study and learn negotiating strategies and tactics so that you don’t end up on the losing end of a business deal.  Everybody always wants to know: “What’s in it for me?”  And if you want to indeed find out what’s in it for you, you need to become a master negotiator.  So how do to that?

First off, learn to recognize and see both sides of the deal or maybe it might be better to say, the argument.  Know what you want and what they want.  You always need to know what it is that you specifically want out of a negotiation.  Determine what your position is right off the bat.  Don’t wait for the other side to do so first.  Your position shouldn’t be influenced by theirs.  Write down a wish list of things you want before you start negotiating – think about what you’re willing to compromise on and what you’re not.  You don’t want to be coerced into accepting terms that don’t meet your desired goals.  Be very specific in terms of dollars, percentages and timetables. 

While you might be eager to go after what you want, don’t forget to be patient.  “Lack of patience can make you look like an amateur and kill a deal.”  Don’t let the other side see you sweat.  Don’t make known how important your timetable is to making a deal.  If they see you want to make it right away, they might not be willing to concede on certain issues – in essence, lack of patience puts the other side at an advantage.  Bottom line: Never accept a first offer.

Know when it’s time to walk away from the table.  Know your limits and don’t let the other side push you beyond them.  Ask yourself what’s the minimum amount you’re willing to accept.  It’s not an auction.  Don’t let yourself get swept up in the frenzy and outbid yourself due to over-excitement.

With all this said, you will always have to make concessions in a negotiation, if for no other reason than to make the other party feel that they’ve gotten something out of it too.  Decide in advance what’s really important to you and what you’re willing to compromise on and what you’re not.  Don’t price yourself out of a good deal.  Ask yourself what your limits and “deal killers” are.

Additionally, you have to be willing to add value to those at the other side of the negotiating table or they won’t agree to your terms.  Don’t expect anyone to give you anything for free.  Look for common ground.  Show the other side how giving you what you want (and sometimes that’s some not all) will add value to the deal and be beneficial to them as well.  Look at how the negotiation can bring positives to both sides of the table.  Seek win-win opportunities.  Everyone at the table has different needs and wants so ask how so ask how the negotiation can be advantageous to both sides.  Always give a little.  Remember what’s important to the other side as well.  

Never undercut your value.  “If you are willing to take a hit to your bottom line in exchange for nothing, your credibility goes to zero, now and in the future.”  If you do it once, it becomes expected and you might look weak to the opposition – they might be able to pull one over on you.  Don’t let that happen!

Stick to your guns!  If you’ve offered a good proposal and you know it, stand by it!  “Don’t let fear, condescension from your counterparts, or chiding language make you back off from your position.”  Put the ball in the other side’s court.  Ask them to show you what they think is wrong with the deal you’ve put forth.  Engage them.  Make them think.  Go on the offensive; don’t play defense.  Don’t back down.  Remember, you must always be willing to walk away no matter how painful.

Lastly and most importantly, document the deal on the spot!  Now that you’ve gotten what you wanted or at least the most important parts of it, set it in stone.  Get it on paper ASAP!  The other side’s memory could vanish quickly if you give them a day or so to mull it over.  While you don’t want to look overambitious or let the other side see you sweat, make it known that the deal has to go through right away and that there’s a statute of limitations on how long you’re willing to wait to put the deal in place.

While negotiating can seem daunting if you haven’t done it much or aren’t really a pro at it, follow my advice above and you’ll see you’re a lot stronger than you originally thought and might just walk away from the table a winner!

Here are some articles you might want to check out on how to negotiate in business:

“How to Negotiate: Using Business Communication and Interpersonal Skills to Get What You Want”: http://www.briantracy.com/blog/business-success/how-to-negotiate-using-business-communication-and-interpersonal-skills/

“10 Ways to Negotiate Better”: http://www.startupnation.com/business-articles/9579/1/how-to-negotiate-10-ways.htm

“7 Essential Business Negotiation Tactics”: http://www.csoonline.com/article/595564/7-essential-business-negotiation-tactics

“The Art of Negotiating”: http://www.entrepreneur.com/article/203168

Until next time…