The Art of Negotiating

When starting and running your own business, in any industry, one key skill that the modern day owner needs to master is the art of negotiating. Our blog today aims to highlight how you can improve your negotiation skills and secure the right deal for you and your business.

1. Do your research – understand your objectives and realise what the other person wants from the deal. For instance, if you conduct some research about a potential supplier, you can ascertain how valuable your custom is to them.

2. Select what is negotiable – it is best to decide prior to negotiating, exactly what you are willing to compromise on and what you aren’t. For example, delivery dates and price maybe 2 items that you are willing to negotiate on. Always remain realistic as if you are not prepared to compromise then negotiations will not last long!

3. Plan your strategy – set clear goals and decide on the point where you will walk away from the deal. Devise methods to defend the weaker parts of your argument and try to negate the other parties’ main strength.

4. Choose the right time and place – try to select a time and place that you feel comfortable with and not under pressure to close the deal. For example, you may consider a neutral venue or even your own business premises, to help you feel in control.

5. Communicate your requirements – start negotiations by making clear your requirements and try to get the other party to reveal their starting point. By doing this, you will have the basis for compromising and achieving the deal that is right for you.

6. Ask questions and listen to the answers – this will help you understand what the other party wants and also highlight any areas that they may be willing to compromise on.

7. Avoid making unnecessary concessions – try to avoid appearing too eager to do a deal. While the temptation may be to accept the first offer you receive, always appear calm and carefully evaluate your every move.

8. Be mindful of negotiating tactics – people will always approach negotiations tactically and you should be aware of this. For example, if the other party constantly refers to deadlines, they might be playing games. Do not feel rushed or backed into a corner, instead each time a point is agreed, clarify and write it down.

9. Draw up the contract – when all the points have been negotiated and a deal has been agreed, it is best practice to get a written contract drawn up and signed by both parties.

By following some of the guidelines mentioned above, you should feel much more confident about negotiating the right deal for your business. It is worth remembering that negotiations are a two way process and you rarely get 100% of your requirements. However, by being flexible and keeping sight of the bigger picture, you should find success. To find out how Eazi-Apps can help you get started in business, contact us today.