Updated: Nov 25, 2021
From getting your first client to getting your first round of venture capital funding to scale your startup, the skill called "negotiation" can never be overlooked.
Top businesses have achieved incredible results and realised great feats due to well-executed business and legal negotiations.
Negotiation simply refers to a discussion between two or more parties ending in a beneficial conclusion for all involved.
Negotiations can make or break you: therefore, it is very necessary to know how to go about this process, and the hurdles you need to overcome so that you can be more effective at it. Here are the hurdles to skillfully overcome:
1. Under preparation
Do not go into a negotiation unprepared. It is not an acceptable practice. It creates the impression of underestimating the other party. Prepare well by studying every detail and make sure you have solid answers for probable questions.
2. Inadequate time
Never negotiate in a hurry especially when you are hard pressed for time. Have time to analyse the terms to prevent you from making any rushed conclusions and purchases. Insufficient time allocation is a big threat to negotiation.
Successful negotiations thrive on mutual understanding. Do your best to consider the interest of the other party and not just yours; attempt to find a good middle ground.
Do not be too rigid. Be a little flexible and compromise positively but not to the extent of losing too much value. This does not mean that accept just any terms. Understand the terms very well to be sure that they do not have any negative future consequences.
5. Being Too Emotional
Do not get too personal in the negotiation process to the point where you use abusive, insulting and hurting words. You should understand that everyone is in business at least to make good profit so be diplomatic and intelligently respond to the parties involved.
6. Lack of Confidence and Last Minute Changes
Dress well for the business occasion; this will enhance your confidence almost instantly. During the meeting, make eye contact with others, wear a simple smile, and keep engaging with others during the discussions. Give attention to details; think through every bit in order not to make last minute changes. Such occurrences may break the trust and confidence the other party might have built with you in the process of negotiations.
7. Hasty Conclusions
Do your best to conclude well with the parties involved; it is good to aim at a win-win situation. This is the best goal for all levels of negotiations. Everyone involved should leave the negotiation table with something.
Remember to implement what you just read in order to see results quickly.