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In business, the time will eventually come where you need to deploy your negotiation skills. Clients, partner businesses, and even employees will throw you into situations that require you to look for win-win outcomes. You want to ensure that everyone who can get a positive result does. It won’t always be easy. But even tipping the needle a few percentage points in that direction can help to improve your business tremendously.
Negotiation is a skill like anything else in business. Get it right, and you can supercharge the success of your enterprise and really get things done.
Be Prepared To Walk Away
If the opposing party knows that you’re not willing to walk, they’ll take advantage. Ultimately, they know that you’re always going to have to capitulate to their demands no matter what they say. That’s not a position you want to find yourself in.
Before going into any negotiation, be prepared for a no-deal outcome. Only then can you adequately protect your interests. If walking away isn’t an option, it is not a negotiation at all – it’s begging.
You never quite know what you’re going to get out of a negotiation. As https://thedvsgroup.com/ points out, the amount of money you make in a business transaction can vary wildly, depending on who is at the table on the day. Ideally, you’d like to field your best people and tell them to aim high.
Wherever you go into a negotiation, you want to feel out how far people are prepared to go in meeting your needs. Sometimes they’ll bend over backward to please you – in which case, you can charge a much higher premium. Other times, they’re only marginally willing to go in your direction. Even so, aiming high gives you the best chance of a positive outcome.
Do Background Research
Before going into a negotiation situation, you want to do as much background reading as you can. For instance, if an employee is asking for a raise, you want to know the going market rate for their work. The more that you can find out about their chances elsewhere, the more powerful you make your position. Ultimately, if you know you can get somebody else to do the same work for a lower price, you can use this information during the meeting.
The same goes for pretty much anything. If a client demands too much from you, find out what your rivals offer for a similar price. Or if VCs are asking for high rates of interest, find out what rates other lenders offer.
Avoid Rushing A Deal
Businesses rarely thrash out major deals in a single afternoon. Usually, it takes several rounds of negotiation as the parties involved try to figure out the ramifications. Some contracts are straightforward – such as the salary you’ll pay a worker. But others are much more complicated, especially in the mergers and acquisitions field. Take your time, and don’t be afraid to use your silence to pressure the opposing party. Appearing to “go cold” can have profoundly positive benefits says https://hbr.org/.