Basic Principles of Business Negotiations

Basic principles of business negotiations

Most of us negotiate every day without realizing it. However if I´d mention the word "negotiation" some people would surely get nervous. They imagine themselves in a position when they are hussled and pressured to make a deal with someone who is an expert negotiator, but most of the time negotiation is simply working with someone else to find a solution that benefits both parties equally. Whether you're negotiating with a little kid about bedtime or your biggest customer, the principles are the same.

The first principle is always be polite, honest and considerate. Skilled bargainers do not ever behave badly. If you come to the other party and begin negatively they will look for a reason to tell you ‘no.' But if you are professional and personable, they will feel guilty to say ‘no.'

Be honest, because nobody wants to bargain when you're not bargaining in good faith. It takes too much time, too many resources, too much energy.

Don't initiate a negotiation during a difficult time for the other party. Timing is very important. Just as a child knows not to ask for a treat in the middle of a quarrel between mom and dad.

You also need to take time to prepare before approaching a negotiation, bes tis to start with assessing your own goals.

Next principle, or a rule is to find out all you can about the other party. If you will be negotiating with a business, read everything on its Web site, find and use other information sources, basically anything that can help you know them better (ask to have any marketing literature,...). This should help you get an idea of who you are dealing with.

Another, very important principle is going into negotiations knowing what alternatives you have. A term used for this concept is BATNA (best alternative to a negotiated agreement).

Your BATNA is the option you will take if no agreement can be reached. If you are negotiating an employment contract, for instance, your BATNA might be an offer from another practice. Knowing your BATNA before the negotiation protects you from accepting a poor offer and puts you in a stronger negotiating position.

Skilled negotiators always