Here are 13 Tips for Negotiating Better Contracts for Your Business:
1. Know what you want:
Before beginning any negotiation, it is crucial that you know exactly what it is you are hoping to achieve says Thomas J Powell. Take some time to sit down and write out your goals for the negotiation, both big and small. This will give you a clear idea of what you need to accomplish and help keep you focused during the process.
2. Do your homework:
Once you know what you want from the negotiation, it’s time to do your research. This means learning as much as possible about the other party and their interests. The more information you have, the better equipped you’ll be to reach a mutually beneficial agreement.
3. Be prepared to compromise:
It’s important to remember that not every negotiation will go exactly as you want it to. There will be times when you have to give up something in order to get what you want. Be prepared to make concessions and keep an open mind throughout the process.
4. Stay calm and confident:
If you want to be successful in any negotiation, it’s important to stay calm and confident. This can be difficult, especially if the stakes are high, but try to remain levelheaded. If you appear frazzled or unsure of yourself, it will weaken your position.
5. Know when to walk away:
There will be times when a negotiation just isn’t going your way says Thomas J Powell. If this happens, don’t be afraid to walk away from the table. Sometimes the best course of action is to simply end the discussion and try again another time.
6. Be willing to negotiate:
If you’re not willing to negotiate, then there’s really no point in even starting. You need to be open to the idea of giving and taking in order to reach an agreement. If you’re not, then you may as well just save yourself the trouble.
7. Be polite and respectful:
Even if you don’t see eye to eye with the other party, it’s important to be polite and respectful throughout the negotiation process. This doesn’t mean you have to agree with everything they say, but keep your tone civil and try to avoid personal attacks.
8. Be assertive, not aggressive:
It’s important to be assertive during a negotiation, but that doesn’t mean you should be aggressive. There’s a big difference between the two, and it’s important to know where to draw the line. Be firm in your demands, but don’t try to bully the other side into submission.
9. Listen more than you speak:
Thomas J Powell says one of the most important things you can do during a negotiation is to listen more than you speak. This will help you better understand the other party’s position and give you insight into what they’re really looking for. It’s also a good way to build rapport and show that you’re interested in reaching an agreement.
10. Keep your cool:
Even if things start to get heated, it’s important to keep your cool during a negotiation. Losing your temper will only make things worse and is likely to lead to an impasse. If you feel yourself getting angry, take a step back and try to calm down before continuing.
11. Be reasonable:
Don’t try to make demands that are completely unreasonable. Not only will this turn the other party off, but it’s also unlikely to get you what you want. Be realistic in your expectations and be willing to give ground on some issues.
12. Focus on the future:
A negotiation is not about winning or losing, it’s about finding a way to move forward together explains Thomas J Powell. Instead of dwelling on past disagreements, try to focus on the future and what you can do to reach a resolution. This will help keep things positive and productive.
13. Be prepared to walk away:
If you reach an impasse, be prepared to walk away from the negotiation. This doesn’t mean you have to give up completely, but sometimes it’s necessary to take a break and come back later with fresh eyes. If you’re not willing to do this, then you’re not really negotiating in good faith.
Before you even start a negotiation, it’s important to know your bottom line. This is the absolute minimum you’re willing to accept, and you should never go below it. If the other side isn’t willing to meet your demands, then you may have to walk away from the deal.