Every business owner eventually faces a situation where they have to negotiate with another party. Regardless of the reasons behind the negotiation, you’ll want to be as well as prepared as possible beforehand, as even a little bit of preparedness can lead to much better outcomes for your business. Here are a few tips for small business negotiations.
- Realize It’s a Process
Avoid entering any negotiation process with the end result as your main focus. Being too invested in the final outcome of negotiation will close you off to new ideas and unexpected compromises that could be beneficial to your business. Simply take the process one issue at a time. Once that specific issue has been resolved, move on to the next one. This allows the result of the negotiations to form organically through discussion, which will create more mutually beneficial outcomes.
- Start with an Offer
While paying too much attention to the end result of a negotiation can be harmful once the process has begun, it’s still a good idea to bring an opening offer to the table before you start going back and forth with ideas. With any luck, the other party will take the deal. If not, you can then begin to focus on a smaller issue and build from there. You have nothing to lose by putting together what you believe to be a beneficial deal for your business to present before things get started.
- Know When to Let Go
Think about the concessions that the other party in your negotiation may ask you to make. Which of these points are you willing to sacrifice in order to keep the negotiation moving forward and build some goodwill with the other party for future use? What you’re comfortable with giving up in a negotiation can be just as powerful as what you want to gain.
- Research Past Deals
Knowing details about the deals that the other party has made in the past can benefit your business during your negotiations. You can glean useful insights into what the other party may be expecting of you, especially if these deals have been made with businesses similar to yours or even your direct competitors. This will help you save valuable time and resources as you prepare for your negotiations.
These are just a few of the many ways you can set your business up for success during negotiations. By knowing about past deals, crafting an attractive opening offer, focusing on the issue at hand instead of the final result, and being prepared to let go of certain things, your next negotiation will be more likely to create a mutual solution between your business and the other party.
About: Antonio Padula is a classically trained pianist and vocal instructor. After 15 years touring with several prestigious symphonies, he settled down in 2008 to establish his own music studio in Kirkland, Quebec. Antonio Padula is widely recognized as a compassionate teacher who has launched students in opera, orchestral, and choral careers all around North America.