Negotiation is one the most important and vital aspects of any business. If you are a businessperson who runs a business, you automatically become a negotiator. Business often involves two or more persons and when two or more persons are involved, negotiation automatically comes into play – there is no way you can escape it.
Negotiation is the process of bargaining that takes place before an agreement. If the negotiation is successful, it results in a contract between both the parties. A successful negotiation results in a profitable partnership and a lasting business relationship between the parties.
Negotiation is one of the inherent facets of a business – it is something universal. No person takes the opposite party’s conditions or prices for granted – it always involves a bit of give and take. If you are the purchaser and the seller quotes a price, you will negotiate for a lower price, and if you are the seller you would try to negotiate for a higher price. Every transaction involves a little amount of negotiation – no matter how big or how small the deal. When you’re in business, negotiating for the best possible deal would become the highest priority. Negotiation is a game and a means, but not the end.
Since negotiation involves two parties, it goes without saying that one negotiating party is strong while the other is weak, and so one party has the upper hand. In any negotiation, the party which would like to have the deal desperately would be willing to compromise and give up the most. Negotiation is like a card game – you have play the game by keeping your cards close to your chest.
Here are a few tips to teach you how to win a business negotiation:
1) Determine before hand what you expect from the negotiation. Prepare a list and write down all those things that you would like to achieve and expect from the negotiations. It is very important to know what the other party wants and what you want.
2) Patience is an extremely important quality that gets you results. Negotiate with confidence and bide your time – your patience may unnerve the other person or party and they may jump at your offer.
3) Listening carefully is very important. If you do not do so, there are chances that you would miss out on an important point or two.
4) Remember that negotiations take up a lot of time, but the most important time is at the beginning of the negotiation. Establish your credibility – show that you are confident, precise, clear and establish your demands and conditions at the very beginning. If you do not do that, you are likely to get side-tracked and would lose time and momentum.
5) You should always be reasonable in what you ask for. Make a list of points or questions that you foresee that they would be asking and be well prepared. Be absolutely realistic when you are identifying the points you are going to deal with. Be open to compromise and be flexible.
6) Know everything about the people you would be negotiating with, and try to find out as much possible about them.
7) There is one thing that you should ultimately remember – you are not going for a deal just for the sake of making a deal. If you do that, the chances are the deal may not last very long.
The article tells us of the various aspects of business negotiations and the difficulties involved therein. Negotiations start and also take place before the actual conduct of the face-to-face meeting. The author tells us that even though the representatives are well prepared, and the situational factors have been manipulated in one’s favour, things can still go wrong at the negotiation table. And, if these preliminaries are not managed properly, it is unlikely to have a settlement.