Every business owner should develop negotiation skills. This post shares ten best tips to make sense of business negotiation, including using Doratoon to create an engaging negotiation contract.
Negotiation skill is something every business owner must-have. It does not matter how big or small your enterprise is, you will always come to a stage in your business where you would need to negotiate with clients or vendors.
Your negotiation task may be on salary discussion, purchase or sale of merchandise, real estate transaction, or conflict resolution. Whatever negotiation task you may have, you must be ready to handle it with dexterity and professionalism. In this post, we will look at the ten best tips to make sense for business negotiation.
1. Be the one to Draft the First Agreement
This is a fundamental principle, irrespective of the type of negotiation that you want to make. You should be the one to prepare the first draft of the contract agreement. This allows you to structure the contract and incorporate implementation points that have not been discussed.
With this, you will be at an advantage because the likelihood of the other party discarding and rewriting the contract from scratch is very minimal. The good news is that you can make the contract presentation as engaging as you want to get the buy-in of your partners.
We recommend that you use Doratoon to build your contract presentation. Before going ahead, let us say a little bit about the Doratoon online video editor.
What is Doratoon?
Doratoon is an effective video maker program designed to help businesses create engaging presentations in video formats. With numerous templates and colorful backgrounds to choose from, you can create a fantastic presentation that your audience would love. If you are wondering about how to make animated videos for free, it is very simple.
All you need to do is to opt to make animation online by Doratoon. Within 5 minutes, you can make a highly impactful video that you can share with your partners. You can import your PPT into your preferred Doratoon template to make an impressive video-presentation for your agreement.
2. Listen to Understand Your Partner’s Point of View
Trying to control the conversation during a negotiation project will not get you anywhere. This is an attribute of the worst negotiators. Instead, take the time to listen and understand the point of view and issues that the other party raises.
Ask questions and get a clear idea of key issues they might have with your proposal. Do not spend your time elaborating on the merits of your position. Instead, listen to others and then carefully formulate an apt response that will diffuse any confusion or reluctance to do business with you.
3. Know the Dynamics of the Deal
At the onset of the negotiation, get your facts right. Know the party with the leverage in your negotiation and determine the time constraints that the other part has. Also, get to know other alternatives that they may have and decipher who gets the most out of the contract.
If you are at a disadvantage, you may want to up your game or walk away from the deal.
4. Maintain Courtesy and Professionalism during the Negotiation
No one wants to engage in a business with an abusive or difficult person. Beyond the negotiation, the real business activity will follow and nobody wants to get involved with a rude and aggressive business partner.
Therefore, remain courteous and professional all through the negotiation process. This will help you to establish a good relationship with your potential partner.
5. If it does not pay, walk away
There are numerous business opportunities that you will come across. So, do not get desperate to the point of conceding to all the demands of your partner. If you are not convinced that you are getting a good deal, walk away and do not feel sorry about it.
6. Avoid getting fixated on a current deal and ignore other alternatives
You will always have competitive alternatives when it comes to negotiating a contract. If you are not comfortable with the deal being offered by a party, take a walk and consider other available alternatives.
For instance, if you want to sell your company, do not stick with the first prospect. Explore your options and check other potential bidders before you make your choice.
7. Identify the real decision-maker
Many people are involved in a negotiation process but only one person is often the ultimate decision-maker. You will do well to identify that singular person and focus attention on them.
Do not spend endless time discussing with team members that do not have the authority to agree with you on cogent points. Time is precious and negotiations should not be long drawn. So, get the attention of the ultimate decision-maker and finalize the deal.
8. Do not accept the first offer
Never be too desperate to accept the first offer thrown at you, no matter how attractive it may seem to you. You must always be ready to give a counter offer.
Most negotiators would be willing to go about 5-15% higher or lower than the original offer, depending on who is asking.
9. Do not get stuck on an Issue
It is unlikely that you will agree on all points raised during a negotiation. So, instead of getting hung up on a particular issue, be willing to set it aside and progress with the rest of your discussion.
Somewhere along the line, you may come to a middle point where you agree on pending issues.
10. Do not spend forever finalizing the deal
You must understand that time is a major enemy when it comes to negotiations. You need to understand that the length of time you take in deliberating on a deal, the higher the chance of something coming up to derail the deal.
So, be fast about giving and getting responses and delivering the documents within the specified timeframe. To make your documents more engaging to your partners, you can create animated videos to support your points. You will find seamless steps on how to make animated videos on the Doratoon platform.
These are the ten best tips to make sense for business negotiation. Follow these steps in your next negotiation and improve your chances of getting the deal sealed.