6 Tips for Negotiating in a Crisis Research all your options and ask peers about their experiences before heading into a negotiation.

By Alexandra Carter

Opinions expressed by Entrepreneur contributors are their own.

10'000 Hours | Getty Images

After shuttering storefronts and scaring away consumers, the crisis has left many entrepreneurs faced with a series of pressing negotiations: with a landlord, consumer credit agency or a mortgage holder. How can you negotiate your way through this crisis so your business comes out strong?

1. Realize that your options are greater than you think

Many landlords, mortgage holders, credit agencies and others learned from the 2008 recession that refusing to negotiate with entrepreneurs led to empty homes and storefronts, or years in court. It's in their interest, and yours, to negotiate — especially since coronavirus closures mean that court dockets will be backed up for years to come.

2. Define the problem you want to solve

Instead of panicking, ask yourself the right questions: Do you want to sign up any clients at any cost or hone in on a smaller, more long-term customer base who you know can afford your products? Are you working to pivot your business and lower rent while you get back on your feet? Get your consumer debt payments down to a certain monthly payment? Once you know the problem you're trying to solve, you can approach the rest of your negotiation from a place of clarity and confidence.

3. Then consider your needs and theirs

Needs are what drive every negotiation. Write down yours first: both your tangible needs (30 percent rent reduction for three months or a monthly payment of X) as well as your intangible needs (financial security, peace, the emotional relief of getting it over with).

Related: How to Position Your Startup to Weather the Storm

Think about their needs, too: For example, landlords need to show their own lenders strong occupancy numbers throughout the life of a loan and consistent cash flow, and these two things could prompt landlords and lenders to ease up on tenants for a short period of time as the market adjusts. Credit lenders, too, might need to show consistent payments coming in.

4. Compare notes with others

Many entrepreneurs have turned online to network with others in the same position. One small business owner, Deborah Engel of the coworking space Work and Play in Maplewood, NJ, started a Facebook group where thousands of people from across the country people trade tips: how to negotiate for credit relief, rent reductions, lease extensions and more. For example, you might find that people negotiating with landlords have come up with innovative solutions like a stair-step increase over time or balloon payment on the end. And you'll find out what other business owners have needed to show in order to get those accommodations.

5. Ask open-ended questions

When the moment comes to negotiate face-to-face (of course, most likely via Zoom), make sure you ask open questions. People who ask open questions get more from negotiations than those who don't. Don't ask questions that only require a yes or no answer, like "Can you give me a rent abatement?" Instead, ask questions that start with "What" or "How," like:

"What can we do to make sure you still have cash flowing in the door and help me stay in business so we can partner for the long term?"

"What would you need me to show to feel comfortable with a payment plan?"

"What else have you worked out with other tenants?"

Related: 5 Creativity Exercises to Keep You Sharp While Working From Home

6. Use the "I/we ask"

When you do make your requests, frame it as an "I/we ask." In other words: "Here's what I am requesting, and here's how we both benefit from it." When you have taken the time to ask the other person what they need and show them how what you're proposing will satisfy it, you're on your way to a much better outcome that will help you steer your small business to success.

Try these tips for your next negotiation, and chances are you'll find that even the most hard-nosed person can be surprisingly accommodating. Better yet, you'll find that a problem that seemed hopeless actually has multiple solutions. The overwhelming challenges of the crisis make it easy to give up and give in. But now more than ever, it's up to us to protect ourselves and our businesses. One of the most effective ways you can do so is to ask, and ask for more.

Alexandra Carter

Author of ASK FOR MORE: Ten Questions to Negotiate Anything

Alexandra Carter is director of the Mediation Clinic at Columbia Law School, where she is also an award-winning professor, and a world-renowned negotiation trainer for the United Nations. Carter is the author of Ask for More: Ten Questions to Negotiate Anything (Simon & Schuster; May 5, 2020).

Editor's Pick

Related Topics

Growing a Business

The Definition of Value Is Changing — Here's What Entrepreneurs Need to Know to Survive the Shifting Global Trends

Value has taken on a different meaning in today's world. Here's what entrepreneurs need to know in order to capitalize on these changes.

Starting a Business

Its First Year, This Startup Struggled to Get 75 Clients. Five Years Later, They Have 18,000. Here's How They Did It.

Financial planning startup Facet knew they were targeting a huge untapped market. But getting clients wasn't as easy as they hoped.

Business News

Taylor Swift Reportedly Pays All Restaurant-Goers' Checks to Clear Out Restaurant For Her and NFL Star Travis Kelce

The star was spotted at Arrowhead Stadium for the Kansas City Chiefs game Sunday night alongside Kelce's mother.


The Key to Developing More Informed and Inclusive DEI Marketing Strategies

Discussing the complexities of identity and expertise in DEI marketing and how to avoid the potential cultural and legal pitfalls.


What Does It Mean to Be An 'Authentic Leader,' Anyway? Here's What You Need to Know.

Authenticity may be an overused term, but more than ever, people expect leaders to share something real about themselves. Here's how to make the leap.