Negotiating Your Way to Great Deals.

Too many people decide to strike a deal with another party without sitting down to properly think about a couple of things.

Negotiation is a discussion aimed at reaching a mutually favourable agreement between two or more parties.

It usually involves the parties reaching a compromise, a middle ground, so that both parties can benefit from the arrangement.

To negotiate properly, there has to be a middle ground, not just a white or black situation. There should be a grey area.

In business, negotiation happens a lot.

Between employees in an organization, and most importantly, between two or more organizations, so as to create beneficial partnerships.

Business negotiations, just like any other negotiation, involves a discussion between two or more parties to either resolve a conflict, and most importantly, to create joint value.

Good negotiations help a business to create joint value with other businesses, build long-term relationships, help the business serve more people, create more partnerships, resolve conflicts, avoid future conflicts, etc.

Negotiation has lots of benefits, but only when it is done well.

Before going into the discussion, preparation is key.

Like the saying goes, ‘failing to prepare is preparing to fail’.

Be well acquainted with the person with whom you will be talking to, know about the personal as well as the business needs of the other party. Ensure that the person you will be speaking with is in the position to make a decision on the issue at hand, to avoid unnecessary bureaucracy.

Be well knowledgeable about the situation on ground.

Know all the nooks and crannies of the matter, answer objections and questions, understand how beneficial it is to both parties, just be as informed as you possibly can about the matter on ground.

Have a plan.

Before going in for the discussion, have a standpoint, and know your compromise level too. You need to have a cogent plan and channel the discussion in that light.

Listen to the other party as intently as possible.

Through what they say and their body movement, you can learn more about their pain points and needs. By listening properly, you get to better understand the direction the negotiation is going and if you should change course. You can also know whether or not the other party is flexible enough to come to a compromise.

The goal of a negotiation is to seek a win-win situation, a compromise. At the end of the discussion, all parties should be catered for. No one should feel cheated.

This is not easy to achieve in some cases, but that should be the goal. Make sure that all parties leave the discussion with a benefit of some sort.