Sealing the Business DealNegotiating a significant deal can be a nerve-wracking experience for many business owners. When engaging in this action, it’s helpful to remember that the art of negotiation and selling are very similar to one another. So, when you are negotiating, you should also be selling the benefits of your business in a subtle manner.
There is power in knowledgeBefore negotiations begin, business owners should research the other party as much as possible. The more you understand about the other side’s business, the better. Becoming familiar with and understanding the other party’s perspective means you may be able to be more aggressive in some areas and less aggressive in others. A little background research can help you determine what aspects of the deal will be the most relevant to the other side.
Corporate legal professionals advise you to be always trading and up-selling, never giving anything away for free. If you are presenting and proposing deals, listening and responding is a critical component. Looking and listening with your eyes and other senses can identify when the other party in unnerved or uncomfortable. Or, maybe you’ll notice you’ve hit a raw nerve. Negotiation is a trade-off, and there doesn’t have to be a loser. However, seasoned negotiators should never give anything away. Always be looking for the give and take. For instance, if the other party can’t pay more, can they pay faster? Good negotiators generally end up in an advantageous maneuvering position by trading things that they didn’t think could be traded.
Finding the right figureGetting the right figure on the deal is a mark of success in any negotiation. Consequently, it is vital for you, your associates, and your attorneys to determine what this is in advance of the talks. It may be advisable to begin at a point way beyond where you hope to finish. It’s usually easier to negotiate from a higher figure to a lower one than the other way around. Even if a high number seems outrageous to the other side, you will still have an advantage by putting that figure into their heads.
Stop selling once an agreement is made and close the dealNegotiations typically involve a back and forth process of figures and proposals. This is where negotiators often test one another. Approaching the negotiation with modesty and humbleness is much preferable to arrogance if the aim is to keep the relationship alive and the talks continuing. Having other partners or lawyers in the background with whom you can confer is also a useful tactic if you need to buy some time. When a negotiation has reached the point where all has been said and agreed upon, the deal needs to be closed. Strong negotiators ask for the business. However, once there’s a “Yes,” it’s advisable for negotiators to stop selling before anyone gets cold feet and backs out. At this point, stop selling and change the subject. If you’re approaching a negotiation situation, make sure you have information, support, and comprehensive strategy needed to achieve your aim. If you need counsel on this, an experienced business lawyer can help you to seal the deal.