Make Your Negotiations More Successful Rather Painful By These Tricks

As a small business owner, you frequently have to negotiate, and your skills in this area can directly affect your business results. You need to negotiate with suppliers, service providers, employees, and customers. You started your business because you're great at what you do, not because you enjoy negotiation, but whether you like it or not, this is part of running your own business. 

There always room for improvement in business, and no matter how skilled you are, sometimes an opponent can outshine your strategies. Negotiations are tricky, challenging, and even a bit mischievous. You will have to deal with all kinds of people, so rather than make negotiations painful, here some tips to make them most successful.

Research beforehand

Often, the outcome of a negotiation will favor the party who was better prepared when they entered the room. Research the other party, and find out as much as you can. What is their situation, what do they want, and what do they need? What prices have they given other people before? Who are their competitors, and what kind of deals do they offer? The more you know, the better prepared you will be in the negotiation. Know your numbers too, and be ready to ask questions. Try as much as you can to be specific and never beat around the bush.

Have clear objectives

Make sure you know just what you hope to achieve in the negotiation. Before you ever get started, you should have a clear plan. It is best to think this over objectively, before you get involved in the negotiation, where you may get confusing information and pressure to make a decision quickly. Outline your desired outcomes, and rank your goals in order of how important they are.

Know what you can give up

Chances are that you won't get everything on your desired outcome list. Usually a negotiation involves some give and take by both parties. Before you get started, think about what you are willing to give on, and what a firm bottom line is for you. If this deal doesn't work for you at more than $1.50 per widget, then know this beforehand. Concessions can have many benefits, but don't be the only one to make them.

Have an alternative

You should never put yourself in a situation where you absolutely need a deal. This sense of desperation can put you at a major disadvantage. If the other party knows that you need to make this happen, they may force you into making a bad deal. You should always have a "plan B" in mind. What will you do if this deal doesn't go through? This puts your negotiation on a more even footing.

Don't be intimidated

You may be very experienced, or you may have just started your business last month. When you're dealing with organizations much larger than your business, it's easy to feel overwhelmed or intimidated. Be assertive, logical, and professional during the negotiation. Refer to the facts from your research when you can. Remember that they want to make this deal, too.

Go for a win-win

A negotiation shouldn't be something where the other party has to lose in order for you to win. That may make you feel victorious right now, but it doesn't lead to a good business relationship in the future. It's best to aim for a deal where both parties can be happy with the outcome.

If it's not happening, walk away

If the other party is unwilling to give you enough of a deal to satisfy the firm bottom line objectives that you decided on beforehand, then be willing to walk away. It is better to go with your "plan B" than to feel forced into a disadvantageous deal.

Making your negotiations less painful and more productive can happen as long as you're prepared to deal with any type of negotiator. Keep your cool, never lose your temper, and learn to control your body language. Many business people are nervous when bargaining with important associates. Anxiety is bad for business, so try to relax. You can always walk away if you can't reach a mutual understanding. Whatever happens, stay professional!