Negotiation is one of the most inherent parts of doing business. This can be quite simple, like buying inventory or as complex and difficult as negotiating a merger between two companies. In short, a lot of transactions and deals requite negotiations. Ensure that the perspective on the negotiations is right. It is not a friendly meeting at a restaurant. It is a challenge that needs to be won by playing cool while the other parties lose focus. The point is to extract the best deal possible and it needs to be sold hard. It is a tested and tried way that has proven to work better than a softer sell. However, negotiations, like other processes, require a specific skill set that needs to be learned over time, mostly through negotiation training. In the text below, there are several key factors that one needs to have to be able to network and negotiate well. Let’s take a look at the list:
1. Power
Since the beginning of time, power has been the decider of how businesses, countries, and other things operate and today, it is still a determination of rank. While having and holding power is effective when negotiating, it can be quite hindering if not used properly. For example, power can be used to manipulate people. In this state, it is more beneficial not to take part in using power to get what is needed.
Overusing power can result in someone feeling manipulated or threatened, which can result in an environment that is hostile and possibly a deadlock. This is the worst-case situation and to prevent this from occurring, it is wise not to engage in using power to control other’s decisions.
Keep in mind that there is a place and time for using power excessively. Power can influence the negotiation process entirely and can be responsible for making or breaking an agreement. So, use it wisely.
2. Trust
Trust goes a long way in all areas of life. According to the experts from Negotiation Society, when it comes to doing business, trust is one of the most important characteristics to have. Everyone wants to be trusted, however, gaining that trust can be difficult. It is something that is gained over time and it needs to be achieved through accuracy and repetition. Trust needs to be earned. During negotiations, trust foes hand in hand with respect.
If someone can be trusted, they can also learn to respect. If someone can maintain a balance between respect and trust, and create the perfect environment during the meetings, then it will become possible to ensure a better and sustainable agreement. The goal is to end with a mutual agreement that will be beneficial for all parties involved. If maximum trust is achieved, higher success rates can be higher.
3. Understanding Total Value and Mutual Opportunities
There are several opportunities to consider in any negotiation. The more available, the more chances there will be for total value for everyone involved. To achieve full value, all opportunities and possibilities need to be considered. For example, a new car. If there are two cars of the same price, color, and mileage but one has higher safety, which one would someone choose? It makes sense to choose the one with higher safety since the full value is gained from the same price someone would be paying for.
Conclusion
When negotiating, all possibilities must be considered, as well as all the benefits. If these factors are understood, a business negotiation will give the best possible outcomes with all parties benefiting from it.
