Being a good negotiator may come naturally to many entrepreneurs. After all, if you’re unable to negotiate deals that are both beneficial for you and your clients, you’ll struggle to maintain your business. To grow your business and stay afloat in this competitive world, you need to have a solid understanding of the art of negotiation. Plus how you can use it to benefit both your business and your clients’ business.
Great negotiators have existed in many areas of life. Think of people such as Nelson Mandela or Ex-FBI negotiator Chris Voss. Both of these people used their ability to negotiate to bring about wide-spread societal change or to save the lives of others.
In this article, we’re going to give you 4 negotiation tactics. Try these next time you’re negotiating a deal with a colleague or client.
#1 Plan Ahead
With any negotiation, you must plan ahead. Your plan needs to detail what it is you want to achieve precisely. Such as how the negotiation is going to help your business and how you’re going to contribute to the partnership.
You also need to set out your bottom line. For example, if you’re looking to improve your marketing but only want to pay an agency no more than $500 per month. First, you must include this maximum price in your plan. You also want to assess the person you’ll be negotiating with. Assess their business to see how they operate and the likelihood that you’d make a good partnership.
Having a game plan is going to make the negotiation 10x easier, and save you a lot of time, as you’ll have a clear set of rules to stick to.
#2 Think Twice As Much As You Listen — Listen Twice As Much As You Talk
During the negotiations, let the other person do the majority of the talking — only opting to ask insightful questions that will help to inform your decision.
By letting the other person talk, you won’t feel the need to give away too much information too soon — especially during the early stages of the negotiation.
#3 Aim For A Win-Win Scenario
A win-win scenario is the best outcome for both parties — you both gain something beneficial from the partnership. Only winning when someone else is losing (a win-lose scenario) is an ancient business model. If you’re going to make a deal with somebody, you must aim to work with them in parallel so you can both achieve your goals.
You should most definitely avoid a lose-lose scenario — the idea that if you’re not going to gain anything from the relationship, then you’ll ensure the other party also doesn’t. This is also known as ‘cutting off your nose to spite your face.’ This can leave a bitter after-taste for both you and the other party and may affect future relations with them, which could be fruitful.
#4 Arrange Meetings Regularly
This tactic is derived from the ‘Law of proximity,’ which states that others become more attracted — or more comfortable — to people who they meet with often. Arranging regular meetings will enable both you and the other party to bond and grow trust — essential for any business partnership.
When you have made a solid connection with the other party and gained their trust, it’ll be much easier for you to reach a suitable deal that benefits both parties.
Negotiation Skills Are Essential
Being a good negotiator is key to becoming a successful entrepreneur. Using some of the tips in this article will help you to better prepare for your next set of negotiations, which will ultimately help to grow your business. Remember, when you’re negotiating, always keep in mind what you’ll be offering the other party in return — as win-lose negotiations will never work out in the long-term.
If you want to learn more about how you can improve your life as an entrepreneur, check out some of the latest posts on our blog.
Written by Lewis James