The art of negotiation

Successful negotiators understand how to negotiate so that both parties feel like they are winning.

Preparation is the key. Knowing what to concede, when to compromise, and how to handle negotiations are all useful tools.

Here is a summary of tips that will help any business owner succeed at the negotiating table:

-Have some ground rules about the negotiation process before beginning. This is particularly important if there is a cultural or linguistic barrier.

-Do the homework and know the point at which the deal would not financially benefit the business.

-Decide ahead of the negotiation what is important to the business and what it can afford to give up.

-Establish the validity of the offer by making small concessions. This suggests that there is little room to manoeuvre.

-Build trust and communication with a give and take process. When another negotiator looks for a concession, ask for something of equal or greater value. Think about what the business agrees to.

-Stay on track and be focused throughout the negotiation, don’t let the business unwittingly give away more than planned.