Negotiation Tactics for Business Transactions
Negotiation is a critical aspect of business transactions. Your negotiation tactics can make a break a business deal. There are a few tactics that one needs to consider to bring about a successful negotiation outcome. Each negotiator has his or her own style. Some people take on a more collaborative style whereas some people will take the more aggressive, adversarial road. No matter the style, there are a few things that must be consistent.
Rating Your Priorities
Before the negotiation session, the negotiator should determine the priorities they want to accomplish through the negotiation. After determining the priorities, he or she should rank the priorities and place them in order of importance. This list is used to guide the conversation, concessions made in the negotiation and will also determine the sticking points. Without this list, a negotiator can get quite disorganized and lose track of the priorities.
Know Your Deal Requirements
Another important aspect of a negotiation is for the negotiator to determine their requirements. In other words, the negotiator needs to determine what the deal terms must include. If the transaction does not include certain terms and then they have to decide whether they are willing to walk away from the table. This is to say that without certain terms, the transaction is no longer worthwhile. For example, a deal requirement may be that the deal is worth X amount of dollars. Should the dollar amount fall below the goal or the requirement, the negotiator will determine that they are better off if they walk away from the deal. Setting deal requirements can steer the negotiation process and it also ensures that the negotiator comes out of a deal with those important terms.
Determine What Information and When to Divulge It
Negotiation requires strategy. Strategy is determined by evaluating personal communication styles, the matter of which is being negotiated, or the dollar amount at stake. Strategy can also include deciding what information to divulge doing a negotiation session. Similarly, the negotiator can decide when to divulge specific information. All of these tactics make a difference in the outcome of the negotiation. For example, a negotiator will not reveal his or her weakest point until and unless it appears that the negotiation will end in an impasse.This manner of negotiating can aid in steering the conversation and help a negotiator gain the most favorable outcome.
Fort Lauderdale Business Law Attorney
Brendan Sweeney is a knowledgeable Fort Lauderdale business lawyer with years of experience advising professionals in the business field by assisting with negotiating transactions and contracts. Sweeney Law is here to guide you with skill and determination. Contact us now for a consultation.