Negotiation is among the most dreaded tasks carried out by entrepreneurs at almost all levels. However, similar to public speaking as well as performance reviews, appropriate preparation can provide you with a strong probability of success.
Negotiating is an entrepreneur’s most crucial skill. Before one buys or sells a business, she or he needs to have an adequate negotiation strategy so as to acquire the best end result from the deal.
Actually, the process differs depending on what type of business you intend to sell or buy. Your approach will depend upon many factors, such as if you plan to purchase the legal rights to the name of a pre-existing business, if you would like to acquire the contents of the enterprise or not, or if you would like to only buy a businesses’ assets.
It is advisable to learn more about all the possible pitfalls of the purchase or sale prior to getting the ball rolling and before you make any firm effort to buy or sell a business.
Obviously being armed with a variety of ideas can help to improve your business negotiation. Listed below are five techniques that can improve your negotiation success:
1. Be Comfortable That You Have A Strong Negotiation Position
A strong negotiating position is critical when you find yourself in situations where it is important that you solve the problems to your benefit if at all possible. If there is no clear benefit to you, then do not negotiate. Without a clear benefit obviously available to you, why risk the possibility of losing. Negotiate only when it is in your best interests to do so. Always avoid negotiations when doing so is definitely a disadvantage to you. Don’t negotiate unless there are definite benefits to be earned that absolutely outweigh potential risks.
2. Get Information
As soon as you know you are in a strong negotiating position, you should get information regarding your opponent’s offer and utilize it to strengthen yours. A lot of negotiations come apart just because either one side or the other does not listen, or verify, or take some time to clarify just what the other side is providing or take time to clearly explain what they themselves are providing.
This implies that during any negotiation, you must do a lot of listening, checking and clarifying. And when it becomes your time to restate your case, you will need to be ready to ensure that all of your points are clearly understood by your opponents.
3. Keep Focus On All Of Your Negotiation Goals And Objectives
All of your negotiating goals and objectives will certainly be on the table. These are generally based upon what you’re negotiating for. You have to consider whether or not the negotiation is targeted on short-term or long-term goals. If it is not a one and done negotiation, you should think about the impact of this particular negotiation on likely future ones. Think about some options you could table as well as your bottom line. Are you focusing upon your optimum long-term goals also?
4. Be Sure That You Have A “BATNA”
BATNA simply means Best Alternative To Negotiated Agreement which is the only specific way to succeed in negotiations. By preparing such an agreement before the actual negotiations , you give yourself walk away power. This means that, even though the alternative may not be quite what you want, you will still be ready to accept it, if necessary.
5. Be Prepared Mentally
The right mindset towards negotiations is the major difference between unsuccessful and successful negotiators. Getting yourself into the appropriate state of mind before you begin negotiation is certainly an important part of proper preparation plan.
There is absolutely no guarantee that adequate preparation will always lead to desired results in negotiations. However, chances are that inadequate and very poor preparation will more likely result in failure. Do not take the risk. Pull out all stops to be as properly prepared as possible and you will never regret it.
About The Author:
Sherman Hunter and SDK Hunter Consulting Group staff consultants provide global moneymaking opportunities and proprietary strategies that quickly accelerate business activity. You may familiarize yourself with these unique concepts by visiting the SDK Hunter Consulting Group blog located at: http://sdkhunter.com
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