Negotiation Skills

Negotiation For Better Business

Negotiation is a process where two or more parties having different needs and aims address a problem to find a solution which is agreeable to all, and helps to avoid future issues and conflicts. Good negotiations contribute much to business success, as they help in building better relationships. It is all about give and take. The aim should be creating a constructive interaction that is beneficial for both parties. A successful negotiation is where you can make compromises that mean little to you, while giving something to the other party that means a lot to them. Your approach should foster kindness in spite of the differences in party interests. A good negotiation satisfies each party so they are willing to do business with each other again. This article explains why negotiation is important, and outlines strategies and methods for negotiating well.

Do’s and Don’ts

The right communication can help boost your negotiation skills. Whether you’re trying to increase your starting salary at a new job or settling a business deal, strong negotiation skills are a must. Here are some approaches that work and few to avoid.

• Prepare –

One of the most successful negotiation strategies is preparation. Investigate about the person with whom you’ll be negotiating.  If possible, find out colleagues who have negotiated with the same person before, to have more knowledge of what you should expect.

• Know Your Bottom Line –

Before going into negotiations, be sure to identify your desired outcome and make an agreement with yourself and others. Setting a bottom line will enable you to know when to jump back from negotiations and when to move forward.

• Use a Friendly Approach –

When it comes to business negotiations, friendliness and affection go a long way, even as you’re aware of the need to be vigilant and not too open. Take time to smile and exchange humor. You may be surprised by how small talks can lead to mutual understanding, which can lead to smoother negotiations and a better outcome for everyone involved.

• Listen to Others –

The most important negotiation strategy is listening which many of us were taught early in our lives, but are still trying to master. When you’re eager to make a business deal, it’s easy to get involved in your talking points. The most effective negotiators follow more of listening and less of talking.

• Consider All Options –

No doubt, it’s important to know your bottom line but it’s equally important to keep a variety of options in mind. If business negotiations are done with a closed mind, you may miss an opportunity, you would not have considered otherwise.

• Don’t Get Caught Up in Emotions –

When it comes to business negotiations, don’t let your emotions carry away your approach. It interferes with our judgment and can also lead to strong errors that hinder or stop negotiations altogether. Stay calm and friendly, even if those you’re negotiating with aren’t.

• Never Underestimate Your Worth –

One of the biggest danger of negotiating, especially for those new to business negotiations, is undervaluing what your organization has to offer the other party. List your accomplishments or your organization’s strengths before going into negotiations, and keep them in mind as you speak for what you want.

• Stay Away From Having a Negative Attitude –

It’s important to remember that negotiating, in business requires compromise. The best negotiation techniques are those that focus on developing a mutually beneficial deal for both parties. One-sided thinking is not likely to end with a successful deal, so make sure you know which things are essential to your position and which points you can allow.

• Don’t Enjoy After a Win –

When your negotiation tactics produce your desired result, act as skillfully as you did throughout your discussions. After all, businesses change quickly. The person  in front whom you bragged yesterday may be the person you’re working with in future.

• Don’t Underestimate Anyone –

Regardless of the number of people or appearance of strength and size on either side, don’t underestimate the power of a firm rival. Financial worth and business size may be dominant, but so are preparation, a great plan, and a positive attitude.

• Compromising –

Both parties leave their earlier results and settle for an outcome that is satisfactory to each participant.

The strategy you choose will depend on who you are negotiating with and the type of relationship you have with them. It will also depend on what you are negotiating, and the time frame and circumstances you are negotiating in.