Whether it's about a job offer or a potential business partnership, every professional will find themselves negotiating at some point in their career. The secret to achieving a positive outcome for both parties doesn’t have to be a mystery, however, and the key is often in thorough preparation and knowing some effective negotiation strategies.
To help professionals who are looking to hone their negotiation skills, the members of Young Entrepreneur Council shared important steps to negotiating well.
In business, what's the most important step in any effective negotiation strategy, and why?
1. Understand each party's most important goal
It is critical to have a solid understanding of what is most important to each party involved. At FE International, we help sellers of online businesses find the right buyer, and a key component of our process is helping the seller determine their goals for the sale, making sure these goals are realistic. Negotiations are easier to navigate when you know the value of what you have to offer. —Thomas Smale, FE International
2. Consider your counterparty's perspective
Understanding your counterparty is the most important single step in negotiation. If you understand their perspective, you can effectively control and direct the interaction more effectively. Identify their hot buttons, clearly define your own, understand if a deal is possible, and then close confidently and quickly. —Nic DeAngelo, Saint Investment Group
3. An effective negotiation strategy is to do your research
One of the most important steps happens before the negotiation even begins: doing your research. When you walk into the negotiation, you should already know as much as possible about the other party. What are their values? Where are they from? This information not only helps create a relationship with the other party, but it will also tell you a lot about how they may respond to your negotiating. —Codie Sanchez, Contrarian Thinking
4. Stand firm on your request
While in a negotiation, it's important to be firm in your request and not fold at the first "no." If you believe in what you want and what it's worth, then stand by that decision and don't back down until they can meet you halfway. —Stephanie Wells, Formidable Forms
5. Be aware of your body language
When it comes to negotiating, understand that the terms of any contract or agreement can be modified and that your actions and body language are the most important things to understand. Body language is much more telling than just having a verbal discussion. —Kristin Kimberly Marquet, Marquet Media, LLC
6. Know your top and bottom dollar
All good negotiators know their top and bottom dollar before they ever walk in the room. You can make this strategy work for you because starting at a high but reasonable price shows that you're serious about reaching an agreement. On the flip side, having a bottom dollar in mind means you know when to end the conversation because there's no chance for a fair deal. —John Brackett, Smash Balloon LLC
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- A Guide to Succeeding in Business Negotiations
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- Mastering Online and Offline Negotiation Tactics for Business
- How Can Delta Airlines Differentiate Itself From the Competition? Offer Exceptional Customer Service
- What You Need to Know When Negotiating in China
7. Paraphrase the other party's point of view
Paraphrase their point of view. Don't use their words for it; use yours. Get them to say that one single "yes." Make them feel heard. FBI hostage negotiators use this technique. It is so powerful that it is even used in life-or-death situations. —Tyler Bray, TK Trailer Parts
8. A good negotiation strategy is to be patient
It’s tempting to jump at the first offer or grow tired of negotiating back and forth. But the side with the greatest amount of patience will come out on top. In many cases, we win because the other side isn’t willing to keep renegotiating terms. —Matthew Podolsky, Florida Law Advisers, P.A.
9. Stay professional and courteous
Always keep things professional and courteous. The best way to do that is to maintain a positive and collaborative tone throughout the meeting. That way, even if the negotiation doesn't work out, you'll end up establishing a strong, long-term relationship with the team, and you won't hesitate to do business with them in the future if an opportunity comes up. —Thomas Griffin, OptinMonster
10. Allow time for making informed decisions
Time constraints are poisonous to effective negotiations. If one or both parties feel like they don't have enough time to make an informed decision, it's next to impossible to reach a mutually beneficial agreement. Be sure to set aside as much time as possible for business negotiations to avoid feeling this kind of pressure. —Bryce Welker, CPA Exam Guy
11. Be willing to walk away
I've found that the best negotiations we've had were when I walked away at a certain point and started thinking of Plan B. It's amazing how things move when the person you're negotiating with knows they aren't your only option. —Joel Mathew, Fortress Consulting
RELATED: Mastering Online and Offline Negotiation Tactics for Business
