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- On December 15, 2016
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In our last blog post, we began a discussion about how to successfully negotiate a business deal. We continue this topic now with four more actionable expert strategies you can take right now to make sure you are securing the best deal for your company.
Who is the Decision Maker?
Make sure the person you are negotiating with, is in a position to make a deal, or at least in a role that will help move the negotiation forward. If you are negotiating with a large company, you may be meet with many people at different levels before ultimately interacting with the person or group who will make the ultimate decision.
What Does Each Side Need – Stay Away from Mentioning Pricing Too Early:
The most important part of a negotiation is to understand everyone’s needs – your business’ needs as well as your potential client or vendor. It is advisable that you not offer an ultimatum but state your position clearly. “…think of this as your opening salvo of what you’d like as part of the deal. It also signals what you have to offer.” This can be tricky – ascertaining the needs of your potential buyer may not be evident in the beginning. It s recommended not to mention pricing, timing or commitment right away – stress this is a negotiation only and the point is to talk and get each other’s needs out on the table. If you shoot out the pricing before understanding what the other party is willing to do, you might undercut your business. For instance, what if they were willing to pay more? What if they want much less? If you are forced into mentioning budget or price, give yourself some wiggle room so there more room for negotiation. It is advisable to practice your responses and for different scenarios.
Every business person at some point may have to give into a concession. According to Smallbiztrends, you can “…make sure that when you give a concession (give something of value) that you get a concession (receive something of value) in return.
Put Agreements in Writing:
It is advisable that the important points made in each negotiation meeting be documented and shared with the potential client or buyer within 24-hours. “If it is going to take a while to get approvals or draw up a contract, at least send an email outlining the main points within 24 hours,” according to Smallbiztrends. A timely memo or contract written up shortly after a meeting, will help ensure you are not leaving too much room for the other side to renegotiate or experience buyer’s remorse.
We hope you found these recommendations helpful. Many business owners who are seeking funding to purchase another business are looking to lenders like National Business Helpers who can provide faster access to small business capital on very competitive terms.