Businesses come to agreements all of the time, however when you actually sit down at a table to come up with an agreement with the other party it can often seem daunting. Sometimes you have a basic contract as a starting point, but at other times you can start with nothing and it’s up to both parties to work out a mutually beneficial contract. Here are a few tips that should help you ensure a more successful experience with any business negotiation you have to enter into.
Know Your Objectives
You should have a clear understanding of what exactly what you want and need from the meeting in advance, this is kind of like knowing where you are planning to drive to before getting into the car. Write down your wants and terms so that you will be able to look at your notes and not forget in the confusion of talking things through with the other party.
Generally speaking most agreements have several parts to the equation. If you can separate them out and hash each section out one by one, you’ll achieve more and will generally have much better results than if you try to do all of it at once. This will help both parties avoid overwhelm and the meeting will also be more organized.
Understand Industry Standards
When you go into any business negotiations, there are normally going to be some industry standards to consider. You don’t want to deviate from them much, because otherwise someone is getting the short end of the stick. You want negotiations to be win-win and fair for everyone involved.
Start with an Agreement
If you can both first come to the table where you both agree on something instead of disagree, you can get a lot of the process out of the way. Then, work on the parts you can concede on, and finally tackle the problems that you’re both being having issues on. It’s amazing how well this works.
The best way to start off in control is to have the meeting in a place that you set and even own. Set the time, set the schedule and even arrange for the food and drink if needed. This makes you the host and gives you a little bit of a power position from which to work from.
Set Your Priorities
Before the meeting, determine your priorities and know what you’ll accept and not accept. Set an agenda for the meeting in advance and send it to the other party, so that everyone is on the same page so to speak.
Be Willing to Concede
Know in advance where you’re willing to concede, because that way you won’t have to be caught off guard when you are asked to give a little to get something you want.
Be Willing to Walk Away
In the rare event that the other party is not in a conciliatory mood and is not being fair in your opinion, or is in any way not professional or businesslike, be willing to walk away.
Finally, leave emotions at the door before you even start, there is no place for emotions at the negotiation table. If you leave them at the door, and focus only on the issues at hand and not the people part, you’ll do a lot better at coming to a great agreement that is mutually beneficial.