Negotiation is a fundamental part of the early-stage growth experience. Unfortunately, many executives and/or business owners fall victim to mistakes that make their negotiations incredibility ineffective. Here are three tips to avoid getting the short end of the deal or losing it all together.
1. Don’t be Greedy
Greed is the biggest and most fierce of the negotiation killers. If one party pushes for too much or is too aggressive, the relationships between those involved goes south very quickly. Yes, it’s natural for people to pump the value of their product or position in a negotiation. But know this — it takes a special skill to recognize your own greedy behavior and stop it before it derails the task at hand.
2. Understand the Type of Negotiation You’re Participating In
There are two types of negotiations that can happen in the business’ life cycle. The first can be identified as asset negotiation, which is usually the wheeling and dealing of a one-time transaction. Take the sale of an asset like a piece of equipment for example. The seller wants to get the best deal possible usually with or without a positive personal relationship with the buyer. After all, once the deal is done, the relationship (whatever that may be) will also cease to exist.
The second type of negotiation is a lot different. When both parties involved have to maintain a working relationship long after the negotiation ends, the strategy automatically becomes more complex. In these situations, it’s important to remember that things such as trust, respect and admiration have tremendous value in the negotiation process, and it should be defended at all costs.
3. Don’t Gamble with Things you Can’t Afford to Lose
When you are ready to dial into negotiations, you must always recognize that they can simply walk away. This can be difficult when it comes to strategic relationships, because there’s often significant cost associated with a potential fallout. However, there is often a happy medium. If a relationship is truly central to your success as an organization, you must temper your desire to play hardball or risk losing everything.