The secret to being a good negotiator is to be able to put yourself in the other’s shoes. People who do not have the capacity for empathy and only look at themselves start immediately to lose points when it comes to gaining advantages in a business.
All negotiations must have a balance between the various parties. In order to achieve a positive balance between giving and receiving, it takes practice and a lot of patience.
However, each negotiation is unique and requires a different approach, which must be evaluated according to the interlocutors and each moment.
To win in business as an entrepreneur there are some fundamental techniques:
1) Preparation
Successful negotiations are built through previous work. It is important to investigate the people involved and their work areas, trying to understand the weaknesses and strengths of each one.
The entrepreneur must start any negotiation on the right foot. It is important to rest well and eat something nutritious. It is also essential to arrive at the meeting on time or even a little earlier so that you can rest assured of the schedule. If all the above points are respected the negotiator will feel positive, enter with an alert mind and a lot of control of the situation.
2) Consider all the details of the initial offer
The initial offer is, in general, the anchor of the negotiations. It is also the moment when the details are exposed, which must be done in a clear and reflected manner.
The basic elements of an offer include the price, the proposed work, which products or services are included, delivery times and whether there are incentives for good results, guarantees, terms and conditions. Obviously, price is a key component in any business, but it is essential to keep in mind all the details, which can be significant in the long run.
3) Leave the ego and emotions at the door
Letting emotions control the situation will be of no use, in fact, it will only harm the negotiation. That is why it is important that they remain as neutral as possible. Whoever is able to forget the ego has more freedom to think objectively and greater flexibility. To achieve the objectives is important to have clarity of mind to think of situations stress and be willing to reach an agreement. Entering a meeting with a conciliatory attitude provides more opportunities to achieve the ideal balance between what is offered and received.
4) Observe the strengths and weaknesses
Self-awareness is essential when starting a negotiation. In addition to looking for the other’s strengths and weaknesses, it is important to be aware of your own weaknesses and strengths at the same time. Taking an honest inventory and asking questions is a good principle. Is the company I lead very small, what growth potential does it have? Can my startup respond better to market needs than a large company? Knowing where on the trading panel the company is at will help determine what the ideal deal will be.
5) Realize that leaving without closing a deal is not a lost opportunity
Entering a negotiation knowing that we are willing to leave without closing a deal will allow us to take a strong position. In general, we tend to convince ourselves that if we can’t get anything out of a deal, we lose everything. Our ego will work as a weakness when it comes to negotiating. It is necessary to be clear that if the deal does not close, we are not missing an opportunity, but opening the door to other hypotheses that may arise. If we force a poor offer, we will become stagnant and we will not be able to move on to find something better.
6) Negotiating in good faith
It doesn’t matter if we are negotiating the terms of a long-term deal or a quick sale, it is normal to be defensive when we start a meeting. We all protect our interests and aim to get the best for ourselves.
However, if we intend to leave the meeting with an intact reputation, we need to practice how to negotiate with compassion and good faith. Listening actively and understanding what the other side is saying and asking is a priority. Perhaps the other party has a different objective or an opposite position, but it is always possible to find common ground that can facilitate business.
In any business, communication skills and other soft skills are very important. Find out why these skills are essential for entrepreneurship and business, as well as for a successful career.
