Connect with us

Entrepreneurs

10 Negotiation Skills Every Entrepreneur Must Have

Published

on

negotiation skills for entrepreneurs
Image Credit: Unsplash

We all want to get as much as we can in every deal or transaction. We cannot help considering our self-interests every time we negotiate a deal. This is not selfishness but how we have been created and conditioned by nature. However, to become a great negotiator, you’ll have to put your needs and wants aside and start looking at things objectively. The last thing you want to happen is to blow up the deal just because you couldn’t stop thinking of serving yourself.

Similar to running a business, negotiating is not the easiest thing on the planet. You need to know what you are giving so that you can take what you want. Successful negotiators understand how to strike this balance to build and grow their business. What separates successful negotiators from unsuccessful ones?

Successful negotiators take their time to develop the essential skills that will give them an edge over other negotiators. It takes time and practice to master negotiation skills because every deal will be unique, and you’ll need to use the right approach every time. 

Today, we are going to discuss the top ten negotiation skills that every entrepreneur must have to master this game. Let’s get started:

1. Planning skills

All successful negotiations are the results of planning and preparation. This means that you should do your research properly and know the other party. Knowing the nature of their business and talking to others who have worked closely with them will help you know their strengths and weaknesses.

You can’t offer something to people who you don’t know. After doing your research and knowing the parties involved, you should get adequate rest and show up for the meeting on time. When you do this, you’ll be confident and happy and they will respond in a great way.

2. Understand the opening offer

In most cases, the opening offer anchors the negotiations. It’s the place which holds most of the important details. Therefore, you need to look at it carefully. Some of the elements of an offer include the work being proposed, the goods or services to be used, time of delivery, warranties, incentives, terms and conditions and most importantly, the price.

If you are the person who is going to initiate the opening offer, you’ll have the opportunity to set the stage for negotiations. Keep in mind that the other party doesn’t know what you want. Therefore, you need to be bold and state what you want clearly. If you are on the other side, you should be analyzing how close you are to the proposed offer.

Also, have a clear bottom line. What will you accept? Look at the details closely and understand what you are signing up for.

3. Emotional control

While you should be confident because you’ve done adequate research, you should leave your ego at home. Lack of emotional control is one of the best ways to fail terribly. When negotiating, you should be as neutral as you can. When you control your thoughts and emotions, you’ll be able to think clearly and objectively during tough times and make informed decisions.

Similar to other aspects of life, you have to think clearly when negotiations become stressful. Instead of being rigid, you should be willing to find a common ground. By doing this, you’ll strike a balance between not giving much away and getting what you want. Leaving your ego at home will put your emotions in check help you figure out the way forward.

“The most difficult thing in any negotiation, almost, is making sure that you strip it of the emotion and deal with the facts. And there was a considerable challenge to that here and understandably so.” – Howard Baker

4. Play the game well

Before entering into high-stakes negotiations, it’s important to run through all the possible scenarios with a loved one or colleague. You’ll end up feeling less anxious and you’ll discover several objections to the offer that you had not considered or discover a side of the deal that could benefit you and the other party.

If you don’t have someone to help you out, you should play all the scenarios in your mind. This will help you feel less attached to your expectations. Yes, it’s important to care, but don’t care too much as this may result in a lack of emotional control in case you fail to get what you wanted. Remember, stay neutral and keep your emotions in check. Keep practicing regularly and you’ll master this skill.

5. Strategic thinking

To begin negotiations successfully, you need to think strategically and exercise self-awareness. You need to understand not only your strengths and weaknesses but also the other party’s strong points and weaknesses. Doing this will help you avoid being exploited.

If your company is an infant, how big can it grow in five to ten years? Will you have the ability to respond to your customers needs? What can you offer that the other party can’t? What can the other side offer that you can’t? Knowing clearly where you stand will help you make informed decisions.

6. Be ready to walk away

When you get into a negotiation with the mindset that you can walk away if things don’t happen as you envisioned, you’ll be in a position of power. That’s why it’s important to stay neutral the entire time. You can’t be bullied if you can get up and leave.

When you tell yourself that this deal is everything to you, you’ll find it difficult to control your emotions. And this will weaken your position. Your success or failure in negotiating will be determined by your mindset.

Remember, you are going to hold hundreds of negotiations. If one doesn’t go through, you are keeping your space open to get better opportunities in the future. Don’t force a deal that doesn’t sit right with you. Listen to your intuition. It’s the best and most accurate guide you have. You can never ignore your intuition and succeed.

“To win a negotiation you have to show you’re willing to walk away. And the best way to show you’re willing to walk away is to walk away.” – Michael Weston

7. Ask good questions

You can gain useful information by simply asking good questions. All successful negotiators ask questions. Do not be afraid to ask because no one knows everything. Asking questions is a sign of intelligence. However, you need to formulate your questions properly to hit the jackpot.

Avoid asking yes or no questions because they won’t help you get crucial information. Instead of asking, “It’s a great idea, right?”, you can ask, “Can you share the challenges you’ve been facing this year?”

8. Listen attentively

We all like to hear the sound of voices and have someone listen to us without interrupting. All successful negotiators are effective listeners. They don’t think of what they are going to say next when the other party is talking.

They listen to the arguments presented carefully and then paraphrase what they heard to ensure they’ve understood each other. You cannot acquire valuable information if you dominate the conversation most of the time.

9. Prepare and present several offers simultaneously

Instead of making only one offer, consider presenting more than two offers at once. If the other party rejects all offers, ask him or her to tell you which one he liked most and why. Then go to work and improve that offer. 

You can also brainstorm with the other party to reach a conclusion that pleases both of you. This strategy not only reduces the odds of a failed negotiation but also promotes creative solutions.

10. Respect culture

Most of the things we do in the US are unacceptable in other cultures across the world. The other party might avoid associating with you because of your behavior. Therefore, it’s important to know who you are negotiating with and their cultural background. People like the Chinese, Japanese and Indians respect their culture because it controls all aspects of their lives. Learn how to greet the elderly, serve your food and when to start speaking to name a few.

Always negotiate with the person in charge of making decisions to avoid wasting time. Also, keep your conversation light and funny to avoid destroying your reputation. When you master these ten essential skills, you’ll be one of the best negotiators in the world.

What do you think is one of the most important skills to becoming a great negotiator? Share your thoughts with us below!

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Entrepreneurs

Why Entrepreneurial Innovation Matters More Than Ever

Innovation and disruption are a key part of thought leadership online. But most online business owners today are blinded by tactics

Published

on

Image Credit: Unsplash

Innovation is a topic often discussed in software applications, app development, and the world of tech. However; you don’t hear it as much in the online business space, particularly among service providers. But innovation is the lifeblood of market leadership.  (more…)

Continue Reading

Entrepreneurs

How to Lose a Team in 10 Days: Are You a True Leader?

The dichotomy between good leadership and poor leadership is that you are either showing up for your people or expecting your people to show up for you.

Published

on

Image Credit: Unsplash

“If you don’t like working here, I’m not going to force any of you to stay. Put in your transfer or resignation papers and I will sign them today and you can go work someplace else.” (more…)

Continue Reading

Entrepreneurs

How You Can Start Networking in Style in 2023

By investing your time and effort in networking, you will gain more business through the relationships you make

Published

on

Image Credit: Unsplash

Are you completely new to networking?

Then this article is a great place to start. Networking isn’t hard on paper…you go along to online and in-person meetings, make new connections and build relationships, and those relationships lead to more work so you can grow your business! The challenge is that in reality, it isn’t quite so straightforward, as our emotions get involved and make things much tougher.

It’s incredibly common for nerves to creep in and to feel overwhelmed and apprehensive when it comes to networking – even when it isn’t new to you. But how can you become more successful at it, feel less self-conscious, and make networking work for you and your business?

Here’s a few tips to help you embrace every business networking opportunity you get, so you can grow your business and achieve your goals.

Rock up with confidence

If you want to keep those nerves at bay and ooze confidence at networking get-togethers, you’ll need to downplay it rather than seeing it as a big occasion. Try not to put pressure on yourself and see it as a casual meet-up with a bunch of people with similar goals to you. To help you relax in the run-up to the event, be sure to set achievable goals and expectations before you go.

Keep your chin up and your goals in mind – positivity is key. One easy goal for your first networking meeting is very simply to speak to one other person and see where the conversation goes. Introduce yourself and your business, but take the time to listen to their story, too. It’ll only take a few minutes and will be over before you know it, so it’s nothing to fear. You may even enjoy it and want to speak to a few more people, too!

“You can close more business in two months by becoming interested in other people than you can in two years by trying to get people interested in you.” – Dale Carnegie

Where to go networking

If you’ve never been networking before, it might not be very easy to find a group – but only because there’s so much choice and you don’t know where to start your search! Groups come in different sizes and styles, so it’s important to find one that suits you and your business. Informal, formal, big, small… the choice is yours.

For your first meeting, start small to ease yourself in – a big group could prove too daunting, and stop you from feeling comfortable enough to get involved. After all, you want to make a strong first impression!

If you’re wondering which group to opt for in the long-term, give a few a go! Get a feel for them, speak to as many people as you can, and see which one suits! You’ll know when a group feels right for you, and you can see where those all-important relationships are most likely to be built. If a group doesn’t feel like the right for you, give a different one a go.

Get more leads and referrals

This will happen for you, as long as you put the effort into building those relationships. If you take the time to get to know people, and then check in with them and support them, they’ll see you as a trustworthy and reliable contact who they can call on. And when they feel that way, those leads and referrals you’re looking for will come a-knocking.

Once you’ve made relationships with people who you trust, and they’ve had a positive experience working with you, you can even ask for referrals! But don’t rush this, as you don’t want to inadvertently push people away or try and force the relationship along too quickly.

When you do get an opportunity to work with someone you’ve met at a networking group, go above and beyond to offer more value than they’re expecting, as then, they’ll be much more likely recommend you and introduce you to more of their contacts!

Grow your business

By investing your time and effort in networking, you will gain more business through the relationships you make, and you will be able to grow your business.

We know that it’s not easy, going networking for the very first time. And that’s why we want to give you all the advice and tools that you need so you can walk in with confidence and make the most of the opportunity.

2023 is just around the corner, and you have the chance to make it the year you make networking work for your business. And the benefits could be incredibly amazing for your business, just like they have been for ours, and many business owners we have worked with over the years.

Continue Reading

Entrepreneurs

5 Keys to Building a Valuable Business

There are so many reasons to start a business. The freedom, the flexibility, and the control may be appealing.

Published

on

Image Credit: Unsplash

There are so many reasons to start a business. The freedom, the flexibility, and the control may be appealing. Or the chance to make money doing something you truly love and the ability to be your own boss and set your own hours.  (more…)

Continue Reading

Trending