Management May 5, 2015 Last updated September 18th, 2018 2,301 Reads share

How Critical is Negotiation for Your Day to Day Business Activities?

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Many people think that the best negotiators are naturally hostile and aggressive. This is not usually the case. Aggression and emotion have little place in negotiation. It is essential to remain calm and focused when trying to close deals. Your opponent has to perceive you as being calm and detailed-oriented, but also experienced and well-informed. It is essential in everyday life to negotiate. In fact, we’re talking about a skill used daily by everyone. It is not viable to say “yes” to everything in your personal or professional life and every agreement made, whether “yes” or “no” is part of a negotiation.

There are several important factors to remember when negotiating. All of them are critical to your day to day business activities.

The outcome

You cannot enter a negotiation with any hope of success if you do not know what you expect to get out of it. Equally, you must be aware of what the worst acceptable offer is. This will allow you to negotiate properly and leave the meeting with something that is helpful to you. As a business individual, you must have a goal in mind, or at least an aspiration when walking into a negotiation.

If possible, be SMART and set up smart goals – namely goals that are specific, attainable, relevant, measurable and time-dependant. The clearer you can spell out your goals, the higher chances to have to reach them.

Know your enemy!

You will be in a far stronger position and far more likely to have a successful meeting if you know your opponent. If it is possible to find out about past negotiations and techniques, then this can be very helpful when building an approach to the current meeting. You will need to remain prepared for anything but knowing your opponent will help.

Know yourself

It is essential to remember that you’re doing this negotiation because you know the subject and understand the needs of the business. Know your goal and your own values. Remind yourself of these and stick to them in the meeting. You should never feel intimidated by your opponent, and provided that you know the ins and outs of your subjects, chances are you will land the finest deal. Focus and dedication will ensure you can handle any negotiation and rise to the top of your profession.

Listening is important

It is often very easy to talk at a fast pace order to make sure you have said everything you want to say. It can also be a common issue to talk too much in a meeting because you are enthusiastic and knowledgeable about a subject. However, good negotiators do more than talk. The most important part of any negotiation is listening to the demands of the other party. Listening will allow you to figure a way to give them what they want whilst retaining a satisfactory outcome for you.

Listening to the other party also allows them to feel appreciated and express their views. This also gives you the opportunity to gather information on them as a person. This information may be useful during the negotiation process.

Emotions

A business negotiation or a meeting to discuss performance and review wages can be very personal. However, it is essential to avoid getting emotionally involved. Emotions will cloud your judgment and may well cause you to accept an offer that is not in keeping with your requirements. In more severe cases, emotions can cause you to shout and this will not only hinder the current negotiation but future negotiations will be tainted by this.

Should you find an opponent is making your hackles rise you will need to take a deep breath and speak slowly. This will help you to stay calm and fight your corner. You should never be afraid of being disliked as long as you are always professional. If your opponent attempts an unethical approach or you can simply not avoid the emotion of the moment, it is better to walk away and either re-negotiate another day or look elsewhere for a better deal.

Think about the future

Negotiation is much like everything else in life, the more you do it the better you get at it.  It will never be possible to predict every outcome or obtain the exact result you want every time, but it will be possible to obtain a successful outcome providing you follow the simple examples we mentioned above. And if that’s still not enough, check out these original negotiation guidelines too:

  1. Assess your needs and wants – Before walking in a negotiation, you might want to determine your needs and wants first. What it is that you want to achieve from that meeting you plan to attend? Make an attempt to look at your expectations from more than one angle if you want to categorize the root cause, levels of implication and potential solutions.
  1. The great importance of compromise – Believe it or not, in a business negotiation compromise matters a lot. There shouldn’t be a “winners take all” situation, but a rather “win-win solution” between all the parties involved. To be able to attain your goals and engage other parties successfully, you have to set up pain points and wished goals. A lot of managers and business leaders focus too much on cutting costs and very little on balancing resources to drive results.
  1. Have a game plan – It is important to have a well-established plan when walking into a business negotiation. Stick to your guns no matter what, and never agree to a deal that doesn’t bring any benefits to your business. It’s natural to make concessions, but that doesn’t mean you have to give all up just to close a deal. What’s the point in closing a deal if that deal is completely useless for your company?

Negotiations are important in the business environment because this is the only way you can ensure that your company can succeed. With a bit of luck, a lot of knowledge, proper negotiation training and preparation, closing a solid deal can bring a lot of benefits to your company’s bottom line.

Images: “Group of People Brainstorming about Negotiation Concept/Shutterstock.com

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Davis Miller

Davis Miller

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