If you're a seasoned negotiator, you may already be familiar with the importance of thorough preparation. Negotiation is a subtle art, and it requires careful thought and setup to be successful. While you can't foresee all the contingencies that may arise during negotiations, conducting methodical research beforehand uncovers many aspects you can address in your preparations.
Without proper preparation, a negotiation is liable to take undesirable turns. Anticipating your counterparty's motivations can aid you in foreseeing where the discussion may lead. If you rely solely on your ability to improvise, your negotiation outcome may not be favorable.
Complying with the following key concepts when preparing for your next negotiation increases your probability of success. Putting in the effort ahead of time yields positive results, whereas failing to prepare is likely to contribute to negative results.
When negotiating terms, understanding the normative industry standards is critical to help ensure you don't agree to a raw deal. It's also a useful reference point for resolving conflict. When you know what's normal, you can use it as a point of argument. Why should you accept anything below the general standard?
Having a BATNA, or best alternative to a negotiated agreement, gives you power in options. Without a plan B, your counterparty has the power to lower the standard without any repercussions.
If you have a solid alternative in place, you can always walk away when your counterparty's offer falls below your predetermined standard. Never enter into a negotiation without having alternatives, and don't be afraid to walk away from a bad deal. Doing so can help you avoid negative impacts to your bottom line and reputation.
Knowing as much as possible about the person or persons with whom you're negotiating is highly advantageous. People vary greatly in their approach to negotiating. While one strategy may work wonders with a particular party, it may have the exact opposite effect on another.
Be prepared to negotiate with more than one person. Moreover, be ready to negotiate with someone other than your primary contact. The task of negotiating is often delegated and may even be a last-minute decision.
When preparing a contract proposal, pay close attention to its overall appearance and feel. While the content of the contract proposal is arguably the most important aspect, people tend to notice presentation quality. This is especially true for highly conscientious, detail-oriented professionals.
Consider details, such as font, formatting, and layout. Seek advice from an objective third party about how the document looks. When you're satisfied with the result, convert JPG to PDF online to create a document that preserves the correct formatting when opened on other computers.
Preparing for a negotiation is possibly the most important part of the overall process. Know your bottom line beforehand to avoid being taken advantage of during the discussion. Prepare alternatives and walk-away points, familiarize yourself with industry standards, and thoroughly study your counterparty.
To learn more about negotiation strategies and other business-related topics, consider joining your local chamber of commerce.
This Hot Deal is promoted by Vandalia Butler Chamber of Commerce.