Key elements for a successful negotiation in business is to know what you want before negotiating and aim for a Win/Win negotiation. When you give and take; that which satisfies both business parties interests, you will build a lasting relationship and a fruitful outcome with the help of negotiations.
What is Negotiation?
A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. In a negotiation, each party tries to persuade the other to agree with his or her point of view. By negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise.
Be Prepared to Negotiate
The first step to a successful negotiation is to be prepared. Have a plan. Decide on your desired outcome before you negotiate and set your boundaries. It is easy to define your best case scenario, but what is the minimum you are willing to accept?
Read More : Basic Breakdown on How to Negotiate Better?
Find out, what you can about who you are negotiating with. Understanding their situation can give you the leverage you need to negotiate a favorable deal. Remember you have more than just money to offer. Other things that can be desirable to offer in your negotiations can include,
- Level of service
- Payment schedule
- Contacts and introductions
- Partnerships with third parties
- Contract lengths and durations
- Expertise and knowledge sharing
Principled Negotiation
Negotiations are usually seen to be confrontational, because each party is trying to get the best deal they can. However, negotiations can be positive. You are building a relationship and perhaps the start of a great partnership. Try to find a solution that works for everyone. Follow the four steps to principled negotiation,
- Separate the people from the problem – Make the discussion about what is being negotiated, not who is doing the negotiating.
- Focus on interests, not positions – Both sides want something. Focus on the goals rather than on how you want to accomplish those goals.
- Invent options for mutual gain – Do not approach the negotiations with the goal of getting what you want. Make the goal something that benefits both sides.
- Use objective criteria – Base the negotiations on market values or traditional practices rather than on what you think things are worth.
Negotiation is about compromise not setting up barriers that need defending, if you do not want to compromise then don’t bother negotiating, tell the other party you have no interest in doing business with them.
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