Negotiating a business deal can be a very difficult task and one that is easily mishandled. There can be a wide variety of consequences to a mishandled negotiation, ranging from missing out on a new market to having a partnership go down the drain instead of continuing to flourish. No matter what the potential losses of a failed negotiation could be, it is in the interest of any negotiator to have a firm grasp on how to negotiate successfully to come out of the process with as much benefit as possible for as little cost as possible. If you are looking for tips on avoiding making negotiation mistakes that could cost you dearly, look no further than the next negotiation best practices.
Listen and Understand the other Party
One of the most significant failings of a negotiator is to be so busy talking about the benefits of their business, product, or other relevant factors, as to mainly ignoring the point of view of the party they are negotiating with. By not understanding the other party’s perspective, you can miss out on significant aspects of the negotiation process that can derail even the most well-constructed arguments entirely. Try to make sure that you take the time to see things from the other party’s perspective and give them the chance to talk about their position.
Stay Professional and Respectful
You never know where business negotiations may take you. You may end up wanting to do further business with them in the future, or the agreement may involve working with a representative of the other party for some time. Either way, if you put forward an abrasive personality during negotiations, nobody is going to want to work with you in the future, which can torpedo future business deals before they even get started.
Be Willing to Walk Away
Sometimes the best deal is the one that is not taken. If negotiations aren’t going in the direction you or your company want them to go, you need to be willing to walk away from the discussion. Getting too drawn into a deal to the point that you ‘need’ to make it work often results in your company getting stuck in a bad agreement that you’ll eventually wish that you hadn’t agreed to.
Willy Bringold, Financial Professional at BIO-GROW
Willy Bringold holds an accounting degree, and over fifty years of experience in the financial industry.