Business Negotiation

Without even realizing it you negotiate with your spouse, kids, business partner, contractor and attorney on a daily basis.  It is human nature to try to win every negotiation we are part of regardless of what is at stake. Here are six tips that will help anyone improve their business negotiation.

 

Learn Motivate

“Discover motivation” – In every negotiation there is something that both sides want for their desired outcome. Whatever the case is it is important to discover the motivation of the other party. You can usually find their motivation but doing a little bit of research or simply asking the right questions. The motivation will drive their actions, requests and scenarios. Before you get too deep in your negotiation you should always try to discover their motivation. A distressed homeowner may need to sell to avoid foreclosure or because they are dealing with a divorce.

Walk Thru It

“Have a walk away number” –  Regardless of what your number is or what you are negotiating for you need to know when you will walk away.

Never Cause Risk

“Never make idle threats” – Any blanket statements like these should be at the end of the negotiation and only when you feel things aren’t getting anywhere. Having a walk away number and making threats often go hand in hand.

Commit and Take

“Give to get” – By being flexible and open minded you can get more negotiations to the finish line. If they feel they are being taken advantage of they will most likely try to find an alternative. Even if you have the upper hand you never want to completely steamroll the other side. Not only is this seen as a sign of flexibility but it gives the other party something of value.

Be Positive

“Focus on positives” – If you are looking to buy a property at a discount you need to focus on your ability to close quickly given all the issues with the property. Constantly point out any work that needs to be done, the cost of repairs and the limited pool of potential buyers.