Negotiations are pretty terrifying, especially if you are still new to handling them. One mistake can mess up the entire deal, so you should be careful with what you say to the other party. Scary, right? As much as you want to avoid negotiations, they are completely necessary if you want to expand your business and get as many investors as you need. There is no escape!
The good thing is, everybody starts out not really knowing what to do. Successful negotiators have practiced a lot to hone their skills. They know how important closing a deal is for their business so they took time studying how to win business negotiations. Practice makes perfect, they say. But do you know what to practice to do the job well?
Here are some of the tricks you need to keep in mind if you want to handle a business negotiation effectively:
Listen first before talking.
This skill is a must-have for any negotiations as it is one of the smartest ways to win. You need to understand:
Some of the best negotiators tend to refrain from talking too much, because listening is one of the greatest tools that you can use for your business. You need to be polite. Don't interrupt someone that does the talking. If you want to ask something, write it down first then wait for the perfect opportunity to talk it out. Remember that you need to pay a lot of attention to understand what the topic is all about, because more often than not, you’ll be needing that information later on.
You need to gain confidence before walking into a negotiation. It is not appropriate to walk into a battle without preparations, such as:
Aside from that, there are also a few questions you need to answer.
What should you do to win the negotiation?
What can you offer to the other party for you to win them?
What if they asked you this, how will you deal with it?
Practice answering hypothetical questions and scenarios before going into the negotiation so that you won't be shocked if something unforeseen comes up. You can't always prepare for everything, and not everything will go your way, but preparing yourself can give you a general idea of how to react to objections and challenges.
Right attitude is important.
If the negotiation is really important to you and you want to win it, then you must have the proper attitude. Some people like to talk and deal with someone who has a positive mindset towards business and life. You should try and negotiate with a smile, as well as use your humor (but use it well). It will be easier for the other party to loosen up if you can lift the atmosphere positively.
A few things you need to remember about your attitude:
Don't be impatient.
If you are in a hurry to finish the negotiation, you might lose thousands in just a second.
People that are always in a rush tend to lose thousands of dollars while negotiating. If the other party realizes that you are impatient about closing the deal, they will take advantage of it and will make you sign a contract that does not give you 100% of how much you can gain with them. But if they see that you are patient enough to understand everything, they will be very careful and will do anything to make you agree with them.
Whoever has an understanding of the negotiation has the advantage. So take your time and learn everything you need to know. But don't take too long because you might lose the deal!
Don't be afraid to ask questions
It’s okay to ask questions. The other party will gladly explain their answers to you so you can understand what they want to negotiate with you. But your questions should not be off-topic, as you should not waste any time with nonsense you don't even need.
It is also good to show hesitation while bargaining. If the price is too high or there is something you don't want from the contract, ask the necessary questions to let the other party know so they can adjust.
“Whenever you want to achieve something, keep your eyes open, concentrate and make sure you know exactly what it is you want. No one can hit their target with their eyes closed.”
― Paulo Coelho, The Devil and Miss Prym
One last thing you need during negotiations is FOCUS. Stay focused on how to get the deal done and solve problems that only involve the negotiation. Don't let yourself get side-tracked, because that’s the first step to losing! With all these tricks in mind, you’re well on your way to your first successful business negotiation.