Since business is extremely competitive nowadays, business owners need to master the art of negotiation. Successful negotiations can mean healthier relationships with suppliers and buyers and put you into a winning situation. Adam Veron highlights some of the most effective way of improving your negotiation skills and how to prepare for success:
Know What You Want
Before you enter into a negotiation situation, you should first establish what you want to achieve. Even though price negotiations invariably top the list, there are plenty more other factors that can affect the success of your business unless you sit down and arrive at an amicable agreement with suppliers or customers. It is important not to go to the negotiation table unprepared as then it will be easier for others to make you agree to things of which you have no idea how they will impact your business.
Verify If a Negotiating Situation Exists, Recommends Adam Veron
You can only benefit from a negotiation if there are things that can be reworked to your advantage. If you are certain that you are in a position of strength that cannot be improved on, you should stay away from the negotiation table.
Be Well Informed
Once you are sure that you have a chance of benefiting by entering into a negotiation, you should go about gathering information about what the opposite party is offering and use it to improve your offer. Too many negotiations become fruitless because one or both the parties have not bothered to check what the other side is suggesting or even clarify what exactly they want. According to Adam Veron, negotiations can be more successful if you spend time and effort to listen, clarify, and verify what the other party is saying.
Have a Viable Alternative
Not all negotiations may be as successful as you intend. This makes it important for you to have an alternative agreement with another party that will enable you to walk away from the negotiating table. When the opposite party knows that you have the power to end the negotiations, they will be more careful about coming to a mutually-beneficial agreement. In a worst-case scenario, even if the negotiation ultimately fails, you still have a viable alternative to fall back on.
Prepare the Negotiation Setting
For a better chance of success, you need to be in command of the situation. Therefore, when preparing for the negotiation, you should decide who will take part from your side and also find out who will be representing the opposite party because you don’t want to negotiate with people who do not have the power to decide. You should also make it clear to the opposite party regarding what it is that you are negotiating so that you do not arrive at the negotiations without a clear agenda.
Even as you prepare the right way for successful negotiation, the principal difference will be made by getting your attitude right. You should aim to be business-like, alert, and tough and meet the opposite party on equal terms. Be relaxed and never give the impression that you are desperate.