The business deals you make or don’t make can drastically change the course of your company, so it is important that you enter negotiations well prepared.
Research:
Have a well thought out, flexible strategy and plan that you can use to negotiate effectively. Make sure you research thoroughly and have points in your head that you can use to support your proposal and strengthen the appeal of your side of the deal.
Build a good relationship:
Taking the time before any official negotiation has begun is a great way to generate positive relations and get to know the other party better and understand how they work. As well as making negotiations more comfortable, this can also help you assess whether engaging in a deal with them is the right move as you can identify whether their values, work ethic, and goals align well for business interactions with you.
Prepare for tricky circumstances:
Most business negotiations don’t go as smoothly as people hope, and often involve a lot of back and forth between parties. Take the time to brainstorm any potential disagreements that may arise and think about ways to diffuse them, or the best alternatives for both parties.
Be professional:
If negotiations get heated or the other party isn’t cooperating, it can be easy to become rude or angry. This usually isn’t helpful and can put your company’s reputation on the line and damage your chances of striking a deal with others. Throughout the interaction, remember to keep things professional and courteous in order to uphold your business’ reputation and to increase your chances of working with the other party in the future.
Make an agreement draft:
You or your lawyer can prepare a draft copy of the proposed agreement to bring to the negotiations. If your side has the first version of the agreement, you are able to frame and structure the deal more on your terms The other party may not think about making extensive changes to the document and are more likely to accept points if they’ve already been established as statements rather than questions during the discussion.
Ask the right questions:
Don’t be afraid to ask questions and get informed about the best agreements you can come to. Depending on the type of deal being made, you can ask questions about pricing, benefits for both parties, any other offers available, competitors, documents etc.
Need business advice and accounting, call the team at LT to discover how we can help your small business. Our offices are on King Street, Newcastle.
Call (02) 4926 2300 or Contact us.