NFIB

Negotiating Success
04/ 02/ 2002


At the most basic level, all business is negotiation! In today's workshop, Edith Helmich explains the keys to successful negotiation strategies. The transaction of one asset for another is involved in the most fundamental sale, employment agreement, or exchange of service. As the sophistication level of negotiation increases, however, the successful entrepreneur keeps three basic rules in mind:

(1) Preparation

Select the location for the meeting. Your office is a power location. A restaurant is a friendly, neutral environment. The golf course allows time for discussion in an informal, relaxed setting. Location matters.

Invite a limited number of participants to the negotiation and confirm that they have decision-making authority. Choose carefully.

Before the meeting, know precisely what your company needs, what your company can afford, and whether there are alternative sources for supplying the product or service needed.

Have a definite offer in hand. Facts and figures should be readily accessible. Consider handing out copies of supportive documents or proposals.

Have acceptable concessions, trade-offs, and compromises ready, but hold them back until they are needed.

Predetermine a 'bottom line' and be ready to end the meeting if the line is crossed.

(2) Presentation

Role play important parts of the negotiation until you are comfortable with your presentation. Find a colleague who will simulate uncomfortable situations or unexpected questions.

Never, never get angry or argumentative.

Avoid talking too much. Listen carefully, paraphrase, and make your responses focus on the issues. Don't digress.

Redirect the conversation when the topics stray. Practice several tactful ways to focus the discussion on the purpose of the meeting.

Avoid a competitor environment by stressing the mutual benefits of a good agreement.

Take written notes during the meeting.

(3) Closure

At the end of the meeting, restate the areas of agreement with participants. Continue discussion until everyone confirms each item.

Be prepared to make a final verbal offer, but ask for (or offer to provide) a contact to be prepared for both signatures.

Check the final written agreement against your notes taken during the negotiation meeting. Delay signing any contract that does not include or accurately reflect the provisions that were negotiated.
Have an attorney check the final contract before signing.

If no agreement is reached, try to end the meeting with an option to re-open negotiations. Often one or both parties will be willing to reconsider their offer.

Always leave an unsuccessful negotiation on a friendly note. The future may hold another negotiation that will end in a mutually beneficial agreement.

Remember that not all negotiations are successful. If agreement cannot be reached, you will find another person or company to fill the need. Display confidence and pride in your company. A firm handshake and a smile should be your final statement.

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