Negotiation is often necessary when you are handling a business. The first and foremost thing to keep in mind while handling a negotiation is that the other person involved has equal right as you to express his opinion on the deal being offered. Even when you have strong facts and reasons to back your negotiation, the other person can disagree due to his personal interests. You should understand that the deal should meet his needs if he is to accept it. Even if the reasons laid down by the other party makes no sense, it is a poor approach to fight with them and to keep insisting you are right. The better approach is to let his express his views and listen to his arguments. This will help in making a better offer such hat both parties find agreeable without much compromises. The objective of the negotiation is to see that both sides win. It is better to adapt a few changes in such situations than giving up the entire deal.
Negotiation in Business
We already discussed the importance of negotiating skills as an interpersonal skill. Negotiation skills form the base to all successful and long lasting business relationships. A successful negotiation is when everyone involved in the deal comes out happy. A failed negotiation can end up with parties being resentful, dissatisfied and angry. Dissatisfied and failed negotiation attempts can be very harmful for the long term business plans. The importance of negotiation is extremely high in a business environment than in a personal environment.
The process of negotiation can be separated into three stages:
Preparation Stage – The preparation stage is where you thoroughly research the deal to find the best available offers in the market, the profit involved and your own strengths and weaknesses. This will help you determine what kind of offers you should be looking at and set your boundaries and the areas where you can bargain and where you can make adjustments. Negotiations require mental and physical preparation as it is an intensive process where you require strong persuasive powers which are achieved through strong words and body language.
Opening Stage – This is the starting stage of a negotiation. First, start by greeting others in the negotiation and offering them your respect as a practice of courtesy. Use small talk to break the ice. Share common interests and try understanding the other parties involved. Build a positive first impression. The principle of give and get applies here as everyone present are there for their interests and they will consider your interests if you consider theirs. Always be respectful and open to negotiation. Listen to the deals offered, compare it with your expectations out of the deal and describe your strengths and express what you are expecting from the deal. It is natural to agree to slight changes and agree to small conditions but do not end up with a deal that violates all your expectations. Also often adjustments have to be made because the interests of other people also have to be satisfied.
Closing Stage – The closing stage is where you and the other parties involved agrees to a deal. When closing a negotiation, reinstate the interest you have to the deal. Also summarize what advantages you can bring to the table and your strengths. To seal the deal, make the most of your presentation kills and personal skills. Once you are sure that everybody agrees to your proposition and ready to sign the deal, thank them for their time and presence. Make sure everyone leaves with a positive impression about you in their minds.