Last Updated on September 13, 2024
When you think of business negotiations, you automatically think of tactics. However, this analogy implies that negotiation doesn’t consist of critical analysis and hard work but of sporting talent loaded with gamesmanship and finesse. Once you practice this skill carefully, you will be able to tell the results of the negotiation from the beginning.
The fact that gaming elements are a symbol of the business world and acquisition of transactions is true. However, gamesmanship is not the main factor which leads to a successful negotiation, at least not in this period. You shouldn’t believe that applying some particular tactics or rules will help you achieve successful results. Instead, you should become aware of the fact that there isn’t such thing as the absolute. The strategies that work during one transaction may not be suitable for another one.
Adopt a pragmatic approach when negotiating
Generally speaking, negotiation requires focusing on the pragmatic approach respondent to typical situations of transaction acquisitions: parties that have equal positions and wish to negotiate in an attempt to close a deal with terms that are acceptable to all parties. The main goal in a negotiation is to reach an agreement that benefits all the involved parties, especially you.
Get leverage when negotiating
The idea is to talk your clients into accepting your terms without exposing yourself to the risk of remaining single at that table. This basically means that negotiation requires creative and informative accommodation and compromises. However, it doesn’t mean that you should turn to charity. It’s better to have the superior bargaining position in order to make the other party give up and agree to the things you want. In case the other party doesn’t seem to give up his/her resistance, your skills should pop out and help you deal with the situation.
Be creative and come up with solutions
An effective compromise requires that you do your homework in advance, as well as the critical perspective and analysis related to the deal and to the other party and to the outcome of your meeting. You should never be preoccupied only with achieving your goals, as you’ll end up neglecting the analysis required in order to solve the concerns of your clients. You are advised to bring solutions and suggestions to the problems presented by them.
Be reasonable
Whenever you make a deal you should opt for a pragmatic perspective while also think about the impact of the changes on the final transaction. You will never manage to close a good deal unless you make use of your creativity. Successful negotiations usually take place in reasonable atmospheres, so an aggressive approach is never indicated unless you are obliged to behave like this. If you manage to eliminate the adversarial points or reduce them remarkably, the efforts made during the negotiation will pay off.
Bear in mind that it’s essential to know which terms and circumstances are suited for your approach. You should avoid carrying irrevocably impairing conversations and try not to miss an opportunity only because you haven’t structured your presentation based on the beneficial terms. Sometimes bluffing can help you talk your clients into closing the deal, but you may risk having your credibility seriously affected.
Be imaginative but don’t go over the top
During a negotiation it is essential to be aware of the things that cannot be said or done, especially if the other participants enjoy creating impasses and crises. If you happen to be in this situation, you should know that the other parties act like this either because they consider the things you say valuable or simply because this is how they behave. Sometimes terminating a meeting is a good idea if you notice that getting to a reasonable deal is not possible. Of course, this type of negotiation should be discovered in due time.
Having a pragmatic point of view will help you start an effective negotiation and even close a successful deal. However, the success of a negotiation is based on some other aspects such as anticipation, homework and the ability to discover all the positive and negative factors that the other parties may not be aware of.
Always try to anticipate and characterize the issues that may appear, as well as create your presentation by taking them into account. For instance, if you seize some critical points before that other participants even get the chance to analyze them, you can gain an advantage, as you will look as a well-informed person. You are recommended to organize a meeting with your advisors before every important negotiation, so that they advise you on both its advantages and its potential pitfalls.
