Negotiation is a crucial skill in business. It is essential in closing deals, creating alliance and forming partnerships. Just like our day-to-day negotiations for things, the business world also requires you to negotiate at every point in time. In order to close important deals for your business, you will need to master the art of negotiating, otherwise no matter the number of deals you close, your profit will be inconsequential.
Successful businessmen are those who honed their negotiation skills over the years and perfected the art of closing deals. In this article, we will delve into some of the tactics that have helped these people negotiate effectively. One of the businessmen whose negotiation tactics are covered in this article include – Grant Kelley. He is an Australian businessman with a background in real estate investment, funds management, private equity, corporate strategy, and sports management. If you wish to draw insight from him and many others, whilst enhancing your skills, then read to the end.
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Prepare Adequately
Like the popular saying goes, “Those who fail to prepare, prepare to fail.” Preparation is the backbone of every successful negotiation. Before entering into negotiations, you should have done adequate research on the person you are negotiating with. Understand their needs and pain points, and know how best your product/service can be of help to them. By adequately preparing, you can anticipate every possible challenge and be ready to navigate through it. By carrying out effective personal research before getting into negotiations, you can confidently negotiate with anybody or business with finesse.
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Build Trust
Instead of being overly salesy, your goal should be to establish trust between yourself and your counterpart. That way regardless of your asking price, they will be ready to match it. All past negotiations that didn’t go your way were not necessarily due to lack of funds, some are due to lack of trust between both parties. People generally feel more comfortable releasing money to someone they can trust, how much more when the money involved is a big figure. By demonstrating respect and empathy, you are creating a positive atmosphere that sets the ball rolling for the success of your negotiation.
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Define Clear Objectives
Before entering any negotiation, it is important that you clearly state the expected outcomes, this might include target prices, duration or the terms and conditions. Understanding what both parties stand to gain from each deal will determine from the onset if your objectives are the same, and it help both parties to seek a solution that will be beneficial to all. Having clear objectives will guide you throughout the negotiation process, ensuring you do not make decisions that will affect your business in the long run.
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Know when to walk away
Last, but not least, you must know when to walk away from any negotiation. This is why having clear objectives is essential. Once it is established that you and your counterparts objectives do not align, there is no need going forward, to avoid issues in the long run. In the same way, even if your objectives align, once it is clear that your counterparts’ demands are unreasonable and overly unfavorable to your business, that is the cue to walk way.
Conclusion
Grant Kelley and all other successful businessmen couldn’t have made it to where they are presently without mastering the art of negotiation. Contrary to what many think, negotiation is not an in-born skill, it must be learnt and actively honed in order to become best at it.