Want to know to negotiate business deals? Then you’re in the right place.
Every man or woman is a negotiator in every setting or sphere of life.
You cannot separate negotiation and discussion from your daily life because like it or not, mutual agreement is probably the best and the most peaceful solution to any problem.
Negotiations most of the times lead to both the deciding parties have their say heard and a mutual agreement to facilitate each is reached.
It is meant to be a win-win situation for both.
Negotiation is indispensible from your daily life. You need a raise from your boss or you need to sell your house on a desired price.
Settling of lawsuit after some accident or carrying of diplomatic relations at state or international level- all requires negotiating skills and techniques.
Everyone is a negotiator at some point of the day in fact people do not even know when they are indulged in acts of negotiating.
Negotiation is taught as an art and skill for diplomacy and it is a basic requirement for people who wish to work as foreign diplomatic leader.
Politicians and foreign officers must polish the skills of negotiation to come to solutions that are beneficial for the state.
In cooperate and businesses, you have to be a negotiator to discuss and make deals that are valuable for your business.
Getting a yes for a new deal can be really hard if you do not have smart negotiating skills. Getting what you want and extracting a yes from the other with tact is what negotiation is all about.
Conflict is a part of human life and the day it was decided that all men would be created with different mentality and abilities, conflict was born.
To counter conflicts, negotiation was born as a skill.
Everyone wants to participate in decisions that have direct or indirect affect on them because nobody likes to be dictated.
As people living in this era we have been indoctrinated with the principles of freedom of expression and democracy so much that dictatorship at any level or of any sort is unacceptable.
In all sorts of decision making, whether in governments, businesses or family, negotiation is the major tool. Even in courts, negotiation is used to reach a settlement before trial.
Negotiation, thus, is something we see and do every day but to master the skill and get a yes in your favor is not always easy.
There are some standard strategies that most of the times lead to people being dissatisfied or unhappy with the decision that is made.
However by adopting by better skills and techniques you can use negotiation in your benefit and get your way with tact.
You can save yourself from the dilemma of making too many concessions or compromises in order to reach your conclusion.
In order to reach an agreement that is wise and efficient, good negotiating skills are required.
One also must keep in due regard the relationship with the parties involved in negotiation.
Being to hard or rigid can lead to poor relations and being to soft or flexible will lead to giving up your stance or ideas and prove harmful for your business.
This is why in order to make negotiation a win-win for all, certain strategies and techniques of persuasion must be mastered or at least known before your step your foot in a negotiating arena.
This is where you could lose all or where you get all in your benefit.
To reach agreements two common methods are used in businesses and other spheres of life; positional bargaining and principled negotiation.
Positional bargaining involves bargaining from separate positions to reach a common position and it includes bartering over a price and extreme levels of stubbornness at times.
Mostly it is the cause of bad relationships after efforts of negotiation also.
4 Principles of Negotiation
On the other hand principled negotiation involves a much better form of negotiation with four crucial steps that can help you reach agreements in your benefit or getting a deal in your terms.
There are four principles, which are included in this, which if used effectively can solve any type of conflict and help you reach a conclusion in your benefit also.
These four principles are explained ahead.
If these principles are observed at every stage of the negotiation process and these strategies are kept in use at all times a very peaceful, interactive and beneficial process of negotiation can be assured.
Basically it involves the analysis of the problem and scrutiny of the situation along with the proper study of other party’s interests and perceptions.
Then lastly, creating a response and making a deal through negotiation is done by the mutual agreement of both the parties.
1. Alienate People and Their Problems
First and foremost, in order to reach a yes and deal in your own favor separates yourself from the problem or issue in question.
Many at times, you tend to get so involved that you begin to take the decision making process personal or to your heart.
All responses are then viewed as personal attacks and tend to injure your egos.
This is a major reason that worsens or damages your relations with the other party because with such a mentality, your feelings and actions in response tend to get sore altogether.
The best way to win an argument is by thinking rationally, calmly and without getting offensive.
By keeping your cool and not taking anything about the entire issue personal, you can be able to think rationally and clearly.
All the differences found between the parties, conflicts in interpretations etc all require both the parties to be decent enough to be understood.
Trusting the other and putting yourself in their place can make you reach some of the best decisions ever which are fruitful for both.
Blaming and calling each other the cause of the problem is never the solution especially in business sector this becomes rude and informal, hampering the ties with the other party.
While dealing with problems and negotiating a deal being understanding or at least acting it can get you loads of benefits.
One other thing that must be completely alienated and kept away from the negotiating table during a business deal is emotions.
Do not get to emotional with the problem or deal.
People are often very reactive and get angry when they feel that their interests are under threat.
Dealing with emotions and keeping them away can help you gain not just a lot of respect during negotiation but also help you to the right solution and decision.
When a deal gets emotional and a war of emotions, relationships become weaker than ever.
Even if the other party appears to be emotional and reactive, it is best to not respond in the same manner but use the emotions in your benefits.
Make gestures or use apologies to calm the other party because you as a learned negotiator must know that getting emotional during a deal and disagreement can be harmful for the final decision and long term relationship.
One reason that creates problems amongst people during business negotiation is communication.
The job of the negotiator is to not only speak his deal out and requirements but listen to other party actively.
In this way you get the insights of other party and also stay away from any misunderstanding.
If you do not communicate your problems and your deal properly or you are not heard right then there is a high chance a proper decision won’t be derived.
Same is the case when you are the one not hearing right.
Many people tend to ignore what the other party has to say and focuses on what they themselves have to say but the best of all negotiator is the one who listens first, understands the other and then decides what he has to say accordingly.
In this way, you satisfy the other and do not even make any compensations or compromise to your requirements.
The speakers during these business meetings and negotiation must also keep in mind that courtesy is the best away to get things your way and being rude, offensive, playing the blame game will not get you anywhere.
Whereas it will turn everything sore on the table. So the best way to get things done is to keep it all cool.
Do not view the other party as adversary but a partner in negotiation where both you and he want to reach a common ground or a yes.
SEE ALSO: How To Build a Better Business Relationship: 12 Essential Insights
2. Define and Focus On The Interests
The second principle of negotiation is to define your interests and the other party’s interests to come up with a solution that satisfies both.
However, in order to get things done your way or in your favor you have to be a little selfish and strive for your interests.
Promote your interests and make them the centre of your priority however never be rigid with them.
Always welcome new proposals and new opportunities.
Keep your options open because in businesses while making a deal, you never know the other party hastily makes a proposal which is better for you in the long run.
Just keep you ears open to communication and your words agreeable to new situations.
This is how you can make negotiating table the ground for getting things done in your interest that is superior to all other things.
Just like in international relations, diplomacy is carried out over the principle that the national interests are supreme to all other interests it is somewhat similar during negotiation in business setting.
While making a deal, you must pay entire focus on your own interests and your company’s interests.
Do not compromise on that however, you must also hear out or at least get to know the interests of the other party in order to come to a common ground.
For things to work in your way, hearing out the interests of the other party is very important.
The best negotiator is the one who focuses on his own interests, hears out the other and is open to new proposals or changes but never compromises his own position.
3. Create Options
In order to make negotiations successful, the third principle is to create alternatives.
At times, alternatives are not necessary and parties make a deal before that.
However when there is a conflict of interest (1), which requires negotiating, keeping open to new options or alternatives is the best way for both the parties.
Getting rigid and stuck to your demand will get you to deadlock for the other party wont bend at your terms completely.
You need to give up a little and demonstrate flexibility in negotiating in order to get your way.
During a negotiating process, it is not necessary that everything you need in a deal will be inculcated in it. This is hardly ever the case.
You need to create such options that facilitate the needs of both the parties and set a deal that is beneficial for you.
Create options and alternatives to reach common ends and use tact to get things in your direction.
While creating options you can opt for the craziest and most bizarre options in order to create an informal atmosphere and bring everyone to ease.
Use critical thinking in order to create your options and alternatives, which obviously are aligned or supportive to your basic interest.
Make use of beneficial offers and alternatives rather than threats because that will only get you to lose the trust of the other party.
You need other businesses and successful dealing relationships to keep your own business working.
Hampering relations in such a way by using elements of threats during negotiating deals can be very bad for your business and its future prospects.
4. Make Use of Objective Criterion
Make use of legitimate and practical criteria to negotiate and indulge in successful decisions that are directed to your interests.
Stubbornness and rigidness must be avoided in order because they won’t help you get a yes to your deal.
You need to explore the senses of the other party and attract them towards your perspective making it appear beneficial for both when in real; it might be only in your benefit.
Strategies to Negotiate in your Benefit
Before any business agreement, negotiation is compulsory and a norm. You sit down at the table with other parties or business heads to reach an agreement or make a deal.
The parties sit together with the common aim to make a contract but what are the details of the contract depends upon the negotiation.
In order to make sure that you get a yes and negotiate in your benefit some simple and tried strategies of negotiation will make a pro at this skill.
Interestingly, many people have the craziest negotiation tips such as providing other parties with caffeinated drinks and make decisions with them in drug induced state.
This and many other such tactics are too devious in nature and you need to trust yourself or respect yourself enough to not try them out.
These devious negotiating strategies are not just harmful and pure evil but they can also backfire.
Here is a list of strategies that can be used on the negotiating table to help you get a yes to your new business venture or deal in your benefit.
1. Deal With Negotiation in Parts
Many at times negotiations disintegrate because the parties are too rigid and adopt “all or nothing” approach which leads to unsuccessful negotiations.
Whenever on the negotiating table, the first strategy to make use of is to deal in parts or sections.
Instead of battling over one big war, deal as small disagreements and reach a solution collectively. In this way you make progress ahead.
2. The Fair and Square Approach
This strategy makes use of claims that whatever your stance is only fair according to the industry standards and it relieves you from justifications and time to negotiate over them.
On the other hand, it is the other party who has to convince you to make an exception by offering concessions.
You can get your way with the strategy that simply involves you to ask for what’s fair.
3. The Four Principles That Lead to Yes
Earlier as mentioned, the four principles of successful negotiating are great ways to get a yes and go ahead on the negotiating table.
These include separating from the problem and emotions, investigate the real interest and focus on your own interests, create new options or alternatives and stick to objective through principles of fairness.
SEE ALSO: What Is Teal Management: How To Manage Organizations?
4. Take Control
This strategy involves you taking the control of every aspect of negotiation, which includes the locations, timing and pace.
Control the entire agenda which gives you confidence and upper hand in the decision making process. When you are in control, you decide the topics to be touched upon.
5. The “Offer-Concession” Tactic
In order to make your negotiation process successful always make sure that at the end the other side has a feeling that they have made a good deal.
Meet people halfway because it works for both in businesses.
Never start negotiations by revealing your basic interest or bottom line and once you give the other party the benefit of the doubt that they have achieved a good deal, you could get the real deal done on the side.
6. Question Rather Than Ask
If in case the other party is not willing to negotiate and making a hard line on certain points then ask why.
Probe in and ask question because that is the only way to keep the communication going. Rigidity only leads to arguments and disagreements, which are very difficult to solve.
Question the reason behind the No and do not just demand like the other party. Get the answer and then say what you go to offer.
7. Find Points Of Conformity And End On An Encouraging Note.
The best way to go with this strategy is to use stuff like “You’re right about that,” or “I agree”.
These terms promote a collaborative tone, which is essential to keep the other party satisfied. Sometimes many business meetings are spread over a session of meetings.
Try to end each with a positive and encouraging way which leaves a good impression on the other party and they are more than willing to reach an agreement with you.
8. Do Your Research
Research and information will never let you down.
The party with the most information will always be the better party and will have more leverage.
More leverage means more bargaining chips because you know what they do not know and even they know that!
So do your research right and in such way that you leave them impressed.
Negotiation can also be directed to your way by impressing the other party who become willing and interesting in landing themselves into a deal with you.
Sometimes, even some small personal information about the other party may increase collaboration between the meetings.
In a business meeting it is essential in order to succeed you know all the important details about the other company because that is what will give you an edge during the negotiations.
9. Deal With Ultimatums
Sometimes, it is okay to deal with ultimatums (2) for the greater good. Or for the progress of your business.
If the other party is the only vendor or option left for your business and tries to obtain the benefit of it through an ultimatum “take it and go” policy then it is sometimes okay to accept it.
Just make sure you do no lose your business integrity completely.
10. Facts Over Feelings
In successful negotiations emotions and feelings have no involvement in fact they are kept far away from it.
Emotions can become unpleasant and may harm the negotiating process. Better than that is to use facts and figures to make a point instead of bad behavior or anger.
Also during negotiation avoid personal behavior which makes it appear like you are working solely for the purpose of getting a deal out of the other party.
Which in fact is true but you do not have to make it necessary by using terms such as “I believe” or “I think” etc. Make use of “us” or “we” which gives a collective feeling that all are involved in the decision making process.
Now with these strategies in a business setting, negotiating can become somewhat easier and the success of getting a yes from the other party becomes quite high.
You just need to play the cards right, use these strategies and keep your cool. The rest will just unfold itself on the table which surely will be a win-win.
Conclusion
I hope this article about to negotiate business deals was able to help you to introduce you to effective strategies of negotiation.
It can be one of the most important skills that can set the foundation for the rest of your professional career.
Remember that you use the skill of negotiation every day in your personal and professional life; it would make sense to become a master of it.
The next step is to master these skills and expand on your knowledge.
Expose yourself in difficult situations that will force you to negotiate things you want. Before you know it, you’ll be an expert!
