Effective Negotiations for Entrepreneurs
I recently heard an excellent presentation on Effective Negotiations which has inspired me to share some of the concepts that I learned and a few of my own that I have encountered over the past few years as a young entrepreneur.
Seek the WIN-WIN
- Always try to negotiate on a level that each party can walk away feeling confident and happy about the deal
- Don’t throw around ridiculous numbers that completely undermine the ability for someone to make a profit – we all need to make money, not just one person.
- This isn’t a zero-sum game, so always strive for the best possible situation for yourself and the person that you’re negotiating with – that’s the balance you’re looking for.
Know the DETAILS
- You better be prepared when you set off to negotiate with a vendor or client
- Make sure you know the ins and outs of the business and what goes for what
- If you get caught with your pants down not knowing what you’re talking about, kiss any advantage that you once had goodbye
Be prepared to WALK
- Never be afraid to turn your back and simply walk away if the negotiations have reached a dead end
- In fact, in many cases you will call bluffs by walking away only to receive a “Ok..ok… hold on one moment… we can work this out…”
- Walking away shows that you aren’t in the business of getting screwed over.
Negotiating is more of an art than anything else. If you keep your goals and expectations clear while always thinking about creating a win-win situation, then great things can happen.
