Negotiating is not for the faint of heart in the world of business. It is a vital part of your success as a professional though. You must understand key elements to be aware of, strategies against them, and the ability to adapt when they change.
Think of negotiations as a journey you are taking with someone to reach the desired destination where value and an understanding meet.
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Here are my Top 5 Ways to Handle Negotiations
1. Set the anchor.
By you setting the bar of what things should cost relative to their value gives an upper hand in the negotiation. This is why to set the anchor high. Your counterpart will have to adapt to your measurement of value, and price.
2. Have a walk away option.
You must always have backup plans in case an agreement cannot be reached in the negotiation. This will make you less desperate, and more powerful to your counterpart. If they can't give you what you want someone else can.
3. Understand all parties interests.
Negotiations can be complex. It isn't always only two people involved. You must understand everyone that has an influence on the counterparties perspective. So you target the needs, and doubts of all of those individuals to make a deal be as comprehensive as possible.
4. Find areas of value that vary between parties.
Value can come in many forms. Knowledge, capital, tools, relationships, media attention, and status are just to name a few. You must find what the other party has that you don't, and vice versa. It will be much easier to reach an agreement with strategic value propositions. Say you have connections to drive up the other parties business, and they have tools as well as knowledge to help yours. This creates a win-win dynamic.
5. No deal is better than a bad deal.
Agreeing to a deal that you don't even come out feeling fair about is a bad decision. It will plague into the relationship with the other party. Causing it to be short term, and potentially worse vengeful. By not taking the deal you will stop that from happening. There is plenty of deals in the sea you might say, so don't get hung up on not closing one.
Conclusion: Set the tone, be aware of all variables, and don't put yourself in a regrettable agreement. This will set your negotiations up for success for everyone involved. Embrace the boardroom.
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