Preparing Yourself for a Business Negotiation

While preparing for a business negotiation, you must first understand what the essence of each negotiation procedure is. Negotiating with another person on a business deal is not about being fair, about being just or giving in to your inherent desire to be generous. The negotiation is about getting the best possible deal in the best possible interest of your business. It is your duty and your right to try and maximize the benefit as best as you can.

When you initially start a business relationship with any person, that person will want to maximize his profits as well. Till the time that you can develop some sort of an amicable and long-term relationship, that person is not likely to offer you the best deal that he can. When 2 people negotiate over the business transaction, both want to maximize their profit. Sellers want to maximize the money they can make from sale whereas buyers are worried about losing money and wants to pay as little as possible so that they can make maximum profit on the sale. Between these 2, there is a deal waiting to happen. This is where negotiating comes in.

If you simply accept what the seller offers you because you think it’s fair or right or correct, you could be doing your business a grave injustice. Your lack of initiative will also probably get perceived as weakness and ineptness rather than your sense of fairness and justice. You do not want that to happen right at the beginning of a business relationship with another person. It could mean that other side just keeps pushing for more and more concession which reduces your business benefits.

There is only one simple goal in a negotiation and that is to get the best deal possible. Another thing that needs to be understood about negotiating is that almost every single thing is open to negotiation. Right from the smallest purchase to the biggest transaction, everything is negotiable if you know how to approach it and are not afraid to take the issue of price and a better deal head-on.

The trick is to know how to approach the negotiation, how to ask for what you want, how to juggle getting what you want and giving the other person something in return and when to know that you have got the best deal possible and stopping further negotiation before the deal becomes useless altogether.