- January 18, 2016
- Posted by: Jack Hudson
- Category: Business strategies
Many companies fail to take off and achieve their goals for a simple reason: they have learned one of the most important skills that every entrepreneur must master namely “Negotiate”.
Here I would like to share some simple tips that will help you become a good negotiator, and grow your business. But what is meant to negotiate? Conceptually negotiation is understood as the process by which two parties agree on the individual advantages both in commercial and in the interpersonal or private.
When we start a business, start a negotiation that will continue throughout the duration of the business, negotiate with suppliers, negotiate with customers, we negotiate with the banks, we negotiate with our partners, with trade associations, etc. etc.. We negotiate thousands of things every day, and that is why we must learn this skill that can literally transform our business.
- Always be vigilant. Once you realize that the whole business revolves around the negotiation, you should always be careful and make sure you get (during negotiations) always the most benefit for our company. When you are on the phone, when you are with a client, when it presents a quote or when you have a budget, you should always negotiate. This attitude needs to come into your mind and in your way of being.
- Before you decide, please consult. During negotiations often they face problems of which you are not aware, so before making a decision on issues that you do not know well, consult with experts. For example, a tax issue should be discussed with an accountant. A production problem with an engineer and a problem of “working conditions” with a specialist in the field of human resources. This does not mean that you have to work with all these people, but we need to develop a network of useful contacts that can help you to view the best alternatives during a negotiation.
- Establish a pleasant climate. If the weather is friendly negotiate becomes pleasant. Lunch, breakfast, coffee is opportunities that facilitate a business meeting. It ‘not advisable to make a difficult decision in a stressful condition (offices, workplaces, etc.). For some reason there are big businessmen that their decisions to take on a relaxing golf course …
- Always apply the win-win principle. When you research the advantages for your business, this does not necessarily mean that the other party has to lose. In fact, the best negotiations are those in which both parties perceive a high level of satisfaction and fair. According to this principle, in fact, one of the parties can agree to a lose-win situation if you want to keep the relationship and only if this is more valuable than financial gain.
- Learn to listen. A good negotiator is a good “listener”. A negotiation requires that we analyze in detail the arguments of your counterpart. The listener is opportunity for discussion and demands in its favor.
- Be moderate. Moderation is the virtue of large enterprises. Do not rush, listen before speaking, do not get angry and do not despair, they always give good results. And necessary to maintain control even when the other party causes. If you learn how to maintain self control will be an advantage in the way of business.
- Never give everything immediately. A poor entrepreneur is one that offers all the benefits right away without the other party so requests. In negotiating we proceed step by step, and will be receiving. Gradually increase both the supply and the limits previously discussed. Avoid situations “all or nothing” because it does not leave a way out and in some cases may cut you off.
- Work on interpersonal relationships. Then we speak to prepare the field, since it is much easier to negotiate with someone with whom you have certain empathy rather than with a stranger. Managing relationships is actually one of the most important skills in this process. Be careful, cheerful, fun and create a pleasant atmosphere will facilitate the process.
- Be true to your values and principles. This should be a key priority. Whenever you perceive a threat moral, ethical or commercial, gently and simply explained to the other party that is not in your intentions to continue the negotiations.
- Be sure to close the deal with a compromise. The negotiation is based on the words, but formal agreements must be made with the signing of a document, a quote or any physical element that commits the parties to the agreement.
Remember, learning to negotiate is a skill that becomes a great help especially for small businesses. Learning how to properly use the techniques of negotiation often makes the difference between a small income and a large profit.