Business negotiations are all about contradictions. You need to be flexible, yet firm in your approach. You need to share the relevant information, yet stay cautious that the other party does not take control of the conversation.
There’s plenty to plan and comprehend before the big meeting. However, how you look at things is the most important aspect. We would suggest aiming for an outcome that benefits both parties. This will help you plan for the negotiation effectively.
The negotiation tactics mentioned below will help you prepare for your next meeting.
Do Your Homework
Before beginning business negotiations, always research well. You must come to the table knowing as much as you can about the firm you’re dealing with.
Understand the main concepts and terms they’re expected to use, so you’re not intimidated or confused by the jargon. Moreover, if you’re not able to understand something, it’s okay to seek clarification.
Understand their offerings, competitors, and industry. It’ll help you assess their strong and weak points and aid you in predicting what’s negotiable.
Don’t Be Dominated
Business negotiations are about gaining control of the situation. Talking numbers and making valuable suggestions can be an effective way to do that. Initially gaining control of the conversation sets up the tone for the rest of the business talk.
Certain negotiators start with an extreme number. It’s either extremely high or low. They hope that the other side will be anchored by it.
It can be a threatening strategy that might not work for you. However, even if it’s not something you want to do, you must be aware if someone attempts to anchor you.
Don’t be afraid to speak up if you don’t agree with the proposed numbers. It will signal the other party that they can’t take advantage of you using the anchoring technique.
Know Where You Can Compromise
As a small business owner, you may want the deal more than the other party. It would help if you accept this. Don’t become prey to your pride.
Decide what you want from the negotiation to make it worth it and consider agreeing on everything else. You can approach this smartly.
Recognize opportunities to take control of the discussion and communicate your points confidently.
Have a Plan B
Before stepping into a business negotiation, you need to know the obvious – what to do if the negotiation fails.
Find the answer to this question and see if you’d be able to live with the outcome.
This exercise will allow you to determine how well you need to negotiate. If you’re not in a solid position, you need to take a different approach to get suitable outcomes where both parties win. This is only possible if you have a Plan B.
A backup plan lets you keep going if negotiations reach an impasse. Moreover, nothing comes as a surprise and you are prepared for contingencies.
Once you’ve come up with an alternate plan, make sure you keep it to yourself. If the opposing party knows too much about your other plans, they’ll try to push you and get the better of you.
Negotiations can be complicated, which is why many people fail at them. If you own a business, you certainly can’t avoid it. But don’t be overawed by it. You’ll eventually find a negotiating technique that suits your personality and skills.
As long as you know your strengths and appreciate the other person, you should be good to go. After some time, negotiating will become a habit and you will start becoming better at it.