It is easy to undermine your own negotiations. You may make mistakes in your strategy. You may lack experience. As a result, you may not realize what is happening until it is too late.
It is difficult to identify potential issues and lessen their impact on a business deal. Yet it is the key to negotiating an agreement that benefits your company.
Build a better relationship
The idea is not to defeat your opponent at the negotiating table. An “us versus them” approach puts you at odds rather than working together toward a deal.
As an entrepreneur, you focus on yourself, your company and your interests, but in negotiations, you must consider other parties. What do they want? How can you make an offer that benefits all sides?
Your goal is to answer these questions. By making them part of your negotiating strategy, you become partners. As a result, you are working toward the same goals.
Build a better you
Sometimes, you may become your own biggest obstacle to a successful deal. Recognizing your shortcomings is an important part of any negotiation. Do you rely on intuition and emotion rather than facts? Do you negotiate on your own rather than enlisting the help of others? These approaches may serve you well in other parts of your business, yet not so much in negotiating.
Some entrepreneurs have too much confidence in their own abilities. While you have many skills, deal-making may not be one of them. Negotiating a deal is complex and comes with major consequences for your business. This is where having a backup plan comes in. You never know when something might go wrong.
Build a better future
Entrepreneurs like to get things done. This can work against you if you accept a bad compromise. The characteristics that make you successful can work against you. You may “know” you are doing the right thing, but you may be wrong. Take time to review your options.