5 Negotiation Tips for Reaching the Best Business Deal

Want to know negotiation tips for business success? Negotiation is one of those skills that must be applied properly in order for your business to reach an agreement that benefits your business as a whole.

5 Negotiation Tips for Reaching the Best Business Deal

Therefore, in negotiating, it is important to put forward the common goals to be achieved by you and the other party so that the needs of both parties are accommodated and mutually benefit ( win-win solution ). For that, in this article Actively Share will provide some good negotiation tips so that you can reach the best deal that is profitable for your business.

Also read: What is Content Marketing? Why Is It Important For A Business?

Do a Research

In conducting negotiations, you will definitely experience some obstacles that get in the way.

To avoid and minimize the risk of obstacles, it’s a good idea to do some research beforehand on several things, such as who you will negotiate with, what they like, how their business trips, what kind of work culture they want, what topics you should discuss, or avoid, and so on.

By doing your research beforehand and knowing all the information about the person you are trying to negotiate with, it will be easier for you to reach the goal of the negotiation. For example, when you want to negotiate with foreigners who come from western culture.

They usually prefer that you talk directly about your goals without further ado and it’s also important to avoid arriving late for an appointment. Because usually, foreigners really value punctuality and consider being late as a form of disrespect towards other parties.

Convey As Much Relevant Information As Possible

To achieve a common goal ( win-win solution ), both parties must convey relevant information and nothing is covered up. Because providing as much information as possible is one way to make other people believe in you. Not only that, by providing as much information as possible, you can convey your true goals and expectations.

Even so, you do not have to open all your cards by providing your business information which is included in strategic information or confidential information, just provide information that is suitable for the purpose of the negotiation.

Set Negotiation Deadline

Reaching agreement in negotiations may not be easy. Protracted negotiations will of course also take up a lot of time, energy, and thought. Not only that, the protracted negotiation process also incurs costs such as transportation costs and you may lose the opportunity to look for other prospects because you are stuck in a protracted negotiation. That’s why, to avoid stalling the negotiation process, it’s best if you convey a realistic negotiation deadline from the start .

Setting a time limit for negotiations is like a double-edged sword, on the one hand, if you set an aggressive deadline, the negotiation will not go well.

Meanwhile, if you do not convey the time limit you want, the negotiation process can take a long time without any certainty. At the beginning of negotiations, it is important to provide an estimated target for reaching an agreement in these negotiations.

According to Don A. Moore, Professor at the University of California, setting a deadline for negotiations can trigger an agreement and creative thinking from both parties. In addition, you can also create “artificial deadlines” to speed up decision making from the other party. For example, you give a time limit on a special offer that you provide only for the next week. After a week has passed, the other party will not get a special offer from you. This is useful for creating ” scarcity ” so that it will trigger the other party to make decisions more quickly.

Stay Professional

When negotiating, you will sometimes experience differences of opinion and it may be seen that the other party looks down on you. If this is the case, you must remain professional and focused on the common goal to be achieved.

And when the solution you offer is not acceptable to the other party, avoid imposing your will and try not to respond emotionally. Keep trying to find creative solutions that work for both parties.

Make a Contract or Agreement

Another important thing you should do when you have reached an agreement in a lengthy negotiation process is to make a written agreement or contract. Usually, before signing the main agreement, the parties will sign a Memorandum of Understanding (MoU) first as an initial agreement.

Avoid relying too much on word of mouth without written evidence of the agreement you have made. Without a written contract, the results of the negotiations will be in vain and may be detrimental to you in the future, for example if the other party does not fulfill their obligations according to the agreement at the beginning.

In an agreement or contract, the parties can add a penalty or penalty if the agreed work is carried out later than the specified schedule.

For example, you as a client have reached an agreement with the printing company that the printing company will complete its work within 30 days, but it turns out that the work was not completed on time and only finished after 40 days.

If this happens, you have the right to impose a penalty for that party to compensate for the loss you have suffered. It’s different if you don’t make an agreement from the start, when things like this happen, you don’t have a solid basis to ask for compensation from the party who broke the agreement.

To make a contract or agreement that is right and in accordance with business needs, you can ask for help from parties who are experienced in the legal field.

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