These are the most important business negotiation skills that you should develop:
1. Knowing What You Want
2. Knowing What You Don’t Want
3. Knowing Your Bottom Line
4. Being Able to Get Information About the Other Party’s Needs, Wants, and Capabilities
5. Being Able to Identify Potential Compromises
6. Being Able to Make Compromises
7. Being Able to Make Concessions
8. Being Able to Make Tradeoffs
9. Being Able to Get Agreement on Boundaries
10. Being Able to Identify Options and Select the Right One That Meets Everyone’s Needs
Let us discuss each of these in detail below:
Important Business Negotiation Skills to Have
1. Knowing What You Want
It is very important to know what you want in a negotiation. If you are not clear about it, you may end up giving away more than what you intended. The most important part of knowing what you want is to be able to clearly define it. This means that you should be able to state what you want, and also be able to explain the reasons behind it.
For example, if the other party has asked for a discount on your products and you are unwilling to agree to it, then it will be helpful if you can clearly explain why in a way that the other party can understand.
2. Knowing What You Don’t Want
It is also very important to know what you don’t want from a negotiation. It is easy to give in or give up too much once the other party starts putting pressure or making demands on you. If you know what your limits are and stick to them, then the chances of making a good deal are much higher.
3. Knowing Your Bottom Line
Once you know what your limits are, then you should be able to identify your bottom line. Your bottom line is the maximum amount that you are willing to give up or compromise on from your original position during a negotiation.
4. Being Able to Get Information About the Other Party’s Needs, Wants, and Capabilities
This is one of the most important skills in any business negotiation because knowledge is power. If you know more about the other party’s needs and wants, then negotiating with them becomes easier and there are more chances of achieving a good deal. If possible, try getting as much information about their needs as possible before entering into any negotiations with them.
For example, if they want an exclusive contract with your company for two years for them to get into a new market segment, then it will be better if they approach you with this demand instead of asking for discounts straight away after they have begun doing business with you; then they will likely get better results.
Try getting some background information about their company as well so that even if they ask for something completely unreasonable or unexpected, then at least there will be some scope for negotiations and coming up with an acceptable deal for both sides.
5. Being Able To Identify Potential Compromises
Compromise is one of the most important aspects of any business negotiation. If you are not able to compromise even a little, then there is a good chance that you will end up giving up more than required in the negotiation. Once the other party realizes that they can get away with asking for more concessions from you, then they will do it again and again.
So, try to identify any potential compromises before the negotiations begin so that you can avoid being taken by surprise when the other party begins making demands or putting pressure on you.