Introduction

Have you ever been in a situation where you and your sibling are fighting over a hamburger, and suddenly you realize there is no point in arguing with your hot-headed sibling? So, what do you do? Do you let go of your share of the hamburger, no, obviously not. What do you do then? You will negotiate with them. You might offer something in exchange for the hamburger. Or maybe come to terms and agree on a valid exchangeable value for it. 

This is an example of Negotiation. Now, for anyone wondering what negotiation is. Here is a simple definition for negotiation, it is a form of discussion where two or more parties discuss the terms and conditions of a particular situation and come to an agreement.

But wait, now what do we mean by business negotiations? Okay, let me elucidate that for you.

Business negotiation is a process by which two parties can be employee and employer, or supplier and dealer, etc., basically two parties that are involved in a business come to terms of a business deal. 

This blog aims to provide you with informational insights and strategies to negotiate a successful business deal.

Keep reading further to know more!

Preparation is Key

Preparation is the key, quite rightly said. Without proper preparation beforehand will only lead to unsuccessful endeavors. Just think about it, without preparation, you can’t pass an exam, or without prior prep, you cannot perform for an event. Hence, being prepared for all kinds of adversities is very VERY crucial.

But what kind of preparation would you need for a business negotiation? Let’s dive right into that part of the blog.

Your preparation begins with researching. A thorough research on the topic or subject of your negotiations. Research, read and curate the other party’s needs and goals. You should be very well aware of their pain points. Along with their goals, you should also be aware of the goals and limits set by your organization as well. 

Let’s take a glance at some tips and tricks to research and prepare before going for the actual negotiation.

First things first, you would have to prepare a good argument. And here, we are not talking about the kind of argument you have when you are angry and frustrated. Rather, here, we are talking about having a powerful stand for your concerns. You should sound convincing to the other party because that is what leads to a successful negotiation. 

The second thing that you should be prepared with before your negotiation is to actively listen. Active listening will help you to understand the opposite party’s concerns, needs, priorities, etc. and this also means that you should not daydream or zone out and then put forth your point, this not only negatively impacts your public image but can also lead to an unsuccessful deal or negotiation.      

The next step in your journey of preparation would be to be open and willing to compromise. Your willingness to comprise would determine the success of your negotiation. Being flexible to adjust and find a different solution if something does not go your way will help you to build trust and relationships. 

And that sets the ground for our next step. So the next step would be to aim at either building a relationship or improving the already existing relationship. This can be achieved by simply executing the aforementioned steps in your meeting with the other party. Finding a common ground for you to build empathy towards the other party or engaging in small talk before you actually get into the depths of meetings, schedules, deadlines etc. will help you to build a rapport. Good negotiations come from good relationships and that should be something you are supposed to be targeting. 

Effective Communication

Communication is a critical aspect not only in a business setup but also in our day-to-day life. Let us know the very basics. What does the term ‘communication’ mean? 

The dictionary definition of communication says that any form of sharing or exchanging information, feelings, and ideas is termed as communication. 

Now let us delve deeper into communication, its benefits in business negotiations. 

Communication is not always only about sharing what you feel like, rather it has more to it than seems on the surface. A healthy way of communicating is achieved only when you express your ideas and are willing and patient enough to hear to what the other party has got to say. The use of a collaborative language, one that not only sounds professional but is also equally assertive, is a necessary requirement. Clearly addressing the opposite party’s concerns and leading to agreements leads to a satisfactory result, and in this case,  a successful negotiation.  

Now, think about it, what do we do when we really are engaged in a conversation about subjects that we are actually interested in, that makes our eyes shine a little brighter? We often tend to mirror the opposite person’s body language. The point that I am trying to illustrate here is that, along with a verbal style of communication, where you use an assertive tone, professional language, and convincing diction, you will also have to pay special attention to the non-verbal cues of communication. Mirroring the gestures of the people sitting opposite to you, shows or hints that you are actively engaged in the conversation. Using elaborate hand gestures to demonstrate concepts also works pretty well in the business industry. Giving positive feedback by nodding in agreement is also a non-verbal cue that helps create a positive image of you in the minds of your counterparts. 

So, this was all about how you can use communication to effectively negotiate in a business and maybe crack a deal or two. 

Handling Objections and Counteroffers

Objections and counteroffers are something that we cannot overcome very easily and have become a part and parcel of negotiations. However, we can always try to deal with it in different ways, right? 

If you are someone from a sales team, you might want to know and learn how to handle objections. Handling objections and counter offers has now become an important aspect of sales teams. It will lead to a better closure of deals and negotiations while also taking your concerns into consideration. You shouldn’t always be listening and addressing only the concerns of your counterparts. Rather you should balance everything out. Figuring out how to deal with objections is a great task in itself, pus the weight of your brand’s or company’s reputation wouldn’t put you at ease. Hence, learning and mastering successful objection handling is crucial for sales teams.

Now the very important question arises, how do we anticipate and address these objections? Okay, let us understand this part with an example. When we were in school, no matter primary, prep, or high school. When we used to ask our teachers any questions, have you given a thought to it, how did they know the answers to all these questions? Let’s take a closer look at it. The answer is simple. The teachers used to do their homework and were always prepared to answer these queries. But how did they know, what the students might ask? Because they themselves come up with the possible queries that the students might have after taking the lesson.

Now, now, I can understand that you are wondering what’s the point of this example. So give me a moment to clarify it. This example shows exactly what you are supposed to do. 

You will have to be prepared in advance to address these objections. If you are wondering how? Then follow the steps given below for a more comprehensive guide to handling objections.

1. You should be well researched and very well aware about your audience. If you understand the pain points, priorities or say needs of your target audience, your problem is already half solved. Then you can offer them exactly what they need. This in turn makes them want to engage with your business and buy more of your products. After all of this, you should also actively create buyer personas. Hold on, we get that you are not highly aware of the term. Let us understand it together. So, a buyer persona is a profile of a fictional person who does not really exist, but embodies all the characteristics and features of the audience you are targeting. Essentially, all the team representatives should have a buyer persona profile to demonstrate and elucidate messages, services, content catering to your targeted audiences’s needs. This is just the first step to getting started for a successful journey ahead. Read further to gather more such insightful information, curated just for you!
2. The next step is to truly understand your own message. Understanding and summarising in mind what you can offer, how much you can offer and what are your needs and priorities will effectively help you to elucidate the same for your audiences. 
3. The third step is to brainstorm all the possible questions, queries, objections arising from your message. This can be done with your team, as they can help you to create a list of all the possible objections, as every individual from your team would have a different perspective, it would greatly benefit you. 

In this way, by just simply following a few steps you need to change your game of negotiations in business and successfully crack more deals.

Conclusion

This blog was all about the different strategies you could utilise to negotiate a successful business. For taking a quick glance and understanding the key takeaways from this blog keep reading below. 

Business negotiation is a process where two or more parties, such as employees and employers, or suppliers and dealers, come to terms on a business deal. This blog aims to provide informational insights and strategies for negotiating a successful business deal. Preparation is key, as without proper preparation, unsuccessful endeavors can occur.

To prepare for a business negotiation, one should conduct thorough research on the topic or subject, research the other party’s needs and goals, and be aware of their pain points and organizational goals. Some tips and tricks to research and prepare before going for the actual negotiation include having a good argument, actively listening, being open and willing to compromise, and aiming to build or improve existing relationships.

A good argument involves having a powerful stand for your concerns, which is crucial for a successful negotiation. Active listening helps understand the opposite party’s concerns, needs, and priorities, while being flexible to adjust and find a different solution if something does not go your way can help build trust and relationships.

The next step in the journey of preparation is to aim at building or improving existing relationships by finding common ground, building empathy towards the other party, and engaging in small talk before getting into the depths of meetings, schedules, and deadlines. Good negotiations come from good relationships, and this should be something you are supposed to be targeting.