7 Must-Know Tips for Small Business Negotiation

7 Must-Know Tips for Small Business Negotiation

To grow your business, you need to understand how to get what you want. The key to successful business negotiations is understanding that it’s a two-way street: You often have to give a little to reach your goal. Here are seven tips to help you make the best deal possible, every time.

01. Do Your HomeworkBefore you walk into any discussion, find out all you can about the other company. What are the company’s goals for the coming year and how might you help it get there? Where are its weak spots and strong points? Such insights will help you understand where the other party is coming from and how you might find some middle ground.

02. Prioritize Your Needs

Some issues rank higher than others. Make a list of what matters most to you and your small business. Keep your eye on those points and don’t get caught up in those that aren’t as important.

03. Go for the Win-WinIn a successful negotiation, both parties give a little and get a little. Think collaboration, not confrontation, and you will both end up with a deal that works for your respective businesses. Cultivating respectful, lucrative relationships will lead to loyal long-term working relationships.

04. Lean InCommunicate in a warm, friendly and open way throughout the entire interaction to convey your willingness to collaborate. Use the right body language: Sit at the edge of your chair, lean forward and mirror the other side’s actions from time to time. Show you’re paying attention by using the other person’s name, nodding your head and dropping phrases like “I see” and “Okay.”

05. Stick to BusinessDon’t take anything personally. If the other side says something offensive, it could be unintentional or you might be misreading the situation. Take a deep breath, check your ego at the door and focus on your goals.

06. Don’t Be Afraid to Ask WhyIf the other side is taking a hard line on something, open up the discussion by asking, “Why?” You may find that there is a compromise they haven’t considered.

07. Be Prepared to Walk Away If you can see you’re simply getting nowhere, continuing to debate will only frustrate you both. Stay cordial, but firm. Say something like, “I understand that’s your position and mine is counter to that. I hope in the future, should anything change, you’ll call me again.”

Before your next negotiation,

write down your key objectives

so you’ll have them at the top

of your mind going in.

Advice InspirationActionRemember, negotiation is a

discussion aimed at reaching

an agreement. Always keep

that in mind.

“You must never try to make all

the money that’s in a deal. Let

the other fellow make some

money too, because if you have

a reputation for always making

all the money, you won’t have

many deals.”

— J. Paul Getty

Staples Small Business Hub.

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