About to Make a Business Deal? Follow These Negotiation Tactics
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
To be a business negotiator it is extremely important to understand the significance of attaining a win-win situation. When both the deal makers are happy with the agreement, the chances of a long-term and thriving business partnership are higher. But concrete strategies for generating a win-win negotiation contract often seem elusive.
It is a proven fact that successful entrepreneurs are accomplished negotiators and outstanding listeners. To make a business deal happen you should start negotiating like an expert and concentrate on three key areas: outcome, groundwork and verified strategies.
Six Powerful Negotiation Tactics
You have to be absolutely clear about what you want and prepare accordingly by gaining required knowledge. Once you are ready you can then execute the negotiation devices. Here are six established modus operandi that will transform the way you do business -
1. Make multiple offers simultaneously – If you place only one proposal at a time, chances are that you will find out very little if your counterpart turns it down. Contrarily, if you present several offers, each equally valuable to you, and if the other side refuses all of them, ask him/her which one he/she likes best. The predilection for a particular offer would be a strong clue on where to find value-creating, win-win trades and create common gain. Besides, in making numerous offers at the same time, you indicate your cooperative nature, and your will to appreciate your counterpart’s inclinations and desires. So, the next time you make a business proposition, think of making four that are equally valuable to you.
2. It is always wise to ask for more than you are expecting to obtain. This will result in surprising outcomes for you. One of the most significant qualities of an excellent negotiator is the nerve to ask for the unattainable.
3. It is imprudent to say yes to the very first offer. Even if it is so that the deal is absolutely what you aspired for, take a contemplative view into the details. Emotions, opinions and feelings are often found to water down business deals. Do concentrate solely on the facts.
4. Try and keep away from argumentative negotiations. Business should be done with those we feel akin to and at the end of the day, can trust. While making a deal first verify the position of your counterpart and then produce accurate insights to reinforce your deal. If you find you are disagreeing from the word go, chances are that you will end up crawling out of the room tending to your wounds.
5. A prudent way of initiating a deal is to appear reluctant. The less keen you look, the better your position will be in the end. Often, an initial “I’m sorry, you’ll have to do better than that,” is extremely effectual.
6. Do look for a post-settlement settlement. Imagine you’ve clinched a deal and are quite happy with it, but still feel that you could have attained more worth out of it. According to common convention, you should refrain from talking about the deal with your counterpart and move ahead, lest you ruin the agreement.
By contrast, it is better to ask the other one if it would be better to take a second look into it to see if it can be improved. Go ahead and make clear to your matching partner that both of you can reject the modified deal if it doesn’t perk up both of your end results. This can create new resources of value to be shared between you. It can also engender a win-win deal if it was not the case before. Hammering out the first agreement may establish the faith needed to search the prospects of a better business deal.