Negotiations are a key in business but can also be tricky. In general, there are three approaches to negotiations. Thinking through your negotiation strategies well before the time to buy or sell is a savvy and prudent move. Here are three easy and effective ways to negotiate like a pro.
Negotiation Tactic #1 | Take It or Just Leave It
In the first negotiating tactic, take it or leave it, the buyer makes an offer and the seller makes a counter-offer, then both sides leave it there. If the deal works fine. If it doesn’t work, that’s fine too.
This approach is usually smart because it allows you to assess if you are comfortable with the offer on the table. Sometimes, a small degree of flexibility can help turn a proposed deal into reality.
Negotiation Tactic #2 | Maybe Consider Splitting the Difference
Splitting the difference is often seen as a goodwill gesture in business negotiations. It demonstrates flexibility and can help to move the process forward; however, it’s important to make sure that both sides feel like they’re getting a good deal.
When considering whether or not to split the difference, it’s important to think about all the factors involved in allowing a deal to fall apart. How much time would it take to find another buyer or business to buy? Is the offer fair to both sides?
As long as the two sides are talking, there’s always a chance that a deal can be reached. But when communication ceases, then the deal is definitely finished—and not in a good way.
Negotiation Tactic #3 | Negotiation from What is Most Important to Each Party
One tactic is to understand what is most important to each party. This can range from allowing a relative to stay with the business to moving the business to a new location. Not all key points are directly linked to money, and it is vital to understand this.
Negotiation Tactic #4 | Bring in a Pro
You know the old saying, “never negotiate your own deal.” And it’s true. When emotions run high when buying or selling a business, you can lose perspective and make mistakes based on your own needs rather than what’s best for the company. That’s where an experienced broker comes in to help you establish a fair price and address all of the intangibles that can go into buying or selling a business. With the right help, you can confidently negotiate the best possible outcome for your company.
Working with others is at the heart of successful negotiation, and that means taking into consideration what the other side wants and what the other side needs. At the end of the day, deals are put together piece by piece, and skill is involved in the process.