6 Negotiation Tips For Closing A Successful Business Deal
Business owners and investors need a little push to sign on the dotted line on an agreement document. So, how do you get them to do it? This is where your negotiation skills come into play. You have a small window of opportunity to convince investors to look your way. You don’t have time to build a long-standing impression with them, so you need to make these few minutes count.
Negotiation is all about using the right words at the right time and ensuring you’re convincing enough. It takes great skill to know how to negotiate with different business people and potential investors. Unless you have these skills in the bag, you may have a hard time closing deals. Likewise, you’ll struggle to successfully run your business if you can’t make the right partnerships and close profitable deals. So, to help you facilitate your business, here are some tips you need to know to be an expert negotiator:
Strike a deal they can’t refuse
If you wish to deploy this skill, you need to do some research. When a party is coming to visit you, find out all that you can about their background and interests. This information can become your bargaining chip. Negotiation is all about providing solutions that benefit both parties. Suppose you have some information or expertise the other party is looking for. You can use this to your advantage. If the other party is willing to work with you but still hesitant about signing, this is when you put forward your demand and give them what they want. Ensure your offering is irresistible.
Knowing the opposing side’s strengths and weaknesses helps in creating such offers that are difficult to refuse. If you’re intelligent, that’s good. But if you feel that you lack in some areas, consider enrolling in a distance learning program to hone your negotiation skills, intuition, and boardroom talk. An online MBA no GMAT required will enhance your business acumen, that too, without the trouble of having to go to campus all over again. Plus, you’ll polish other business-related skills and eventually become a better entrepreneur.
Know how to bargain
If you are buying, you need to know how to make an offer. You can’t put the exact amount right away. You need to have a reference point and build your way from there. Suppose you’re looking for real estate. In that case, when you’re buying a property, after observing the selling price, put your demands forward. It would help if you always started small, even though you know a seller will never agree. But you’re not looking for an agreement; you want to build your way to a reasonable price. When you have your reference point, it is now to and fro from there. Eventually, you will hit a price mark that you may find suitable, and so will the seller. The trick is to save some money while the other makes some.
Investors and other potential partners usually take time to consider your deal. That is fine. However, they need to know how long the offer is on the table. This is because you want to push people to make a decision fast. If you leave them for an indefinite period, you will miss the opportunity to work on other prospects. You will also be holding out for a deal that may not happen, which is a waste of time and money. Usually, businesses consider your timeline and offer you a counter deal. This gives you an advantage. You can then take this opportunity to flip the table on them and push them to make a decision right there and then. Deadlines also give you a chance to start looking at other deals. If you feel like you’re not going anywhere with the first one, you can switch to another sooner than later.
Repeat the information
When you’re listening to a business deal, you should repeat what you hear. That doesn’t mean you start parroting what the other party is saying because that can easily be interpreted as mockery. Instead, you want to ensure you catch all the crucial elements of the deal. So you can either question their statements or even repeat what they’re saying in your head. This shows you’re paying attention and gives you ample time to think while in the middle of the deal. Unless all components of what you’re about to sign makes sense, refrain from signing on the dotted line. After all, business deals are a risk. You want to ensure you evaluate what is at stake thoroughly.
Be mindful about your body language
There are many ways to communicate. One of them is through active body language. How you present yourself to the other parties will inform them how seriously they should take you. Your facial expressions are social cues for them to pick. If you don’t like an offer they’re making, show it before you decline verbally. If you want what they’re offering, also make it known. This silent communication of picking up body language and social cues makes for effective dealing. If you’re stoic, the other party will read the deal without thinking of making any amendments. It also helps if you rearrange your expressions when it is your turn to talk. If you use hand movements, it helps emphasize points. If you think in an office environment, no one notices these details, that is not true. Businesses and people take into account how you carry yourself to make an impression of yourself. This impression is crucial if you want to close good deals.
Know how to cross an impasse
Sometimes cutting a deal isn’t straightforward. You may hit an impasse. This could be when the other party is not budging, and neither are you. At times like this, you should know how to suggest alternatives. These alternatives take into consideration what the other party is demanding and how you can uphold that demand.
Suppose the business you’re collaborating with wants a higher share in profits in a joint venture. You can help them get that if they manage to push out more products than your company for the next quarter. This way, not only are you hearing their demands, but you’re also giving yourself the time to decide how to restructure percentages. The same goes for if an employee wants a raise. On reasonable grounds, you want to see if the employee should get a raise. You can give them a timeline. If in 4 months they show improvement, they should get a raise. If not, they have this four-month period to look elsewhere while you also search for a replacement. So, no matter what the deal is, have a primary goal and an alternative to help you out.
The art of negotiations is all about using your skills and knowledge at the right time. Making business deals is a part of the process of running one successfully. However, you want the correct value to look your way. It would help if you researched with whom you’ll be working to have the upper hand. When naming your price, ensure you build a gradual build-up to the price point you want. You need to set deadlines so that businesses know that you’re serious about deals, and you can’t let them walk over you without an answer. When in the middle of a negotiation, try and modify your body language. If you take all these factors into account, you should have no trouble closing stellar deals that add value to your business.