In an OWN IT Live Chat with Guest Host Michael Bush, we covered all the points you need to know before heading into your next business negotiation. Here’s a recap that’ll help you achieve better outcomes the next time you’re at the negotiating table. You can read the original post at the following link. https://www.ownit.com/communities/ownit/posts/686320

1. Business
Negotiations
101
OWN IT
The Network Dedicated to
Small Business Success

2. What *You* Need to Know Before Your Next
Negotiation
In an OWN IT Live Chat with Guest Host
Michael Bush, we covered all the points you
need to know before heading into your next
business negotiation. Here’s a recap that’ll
help you achieve better outcomes the next
time you’re at the negotiating table.

3. What is a Negotiation?

4. Webster defines negotiation as a discussion
aimed at reaching an agreement. While we
don't disagree, Michael put a slightly
different spin on it. He narrowed that down
to a "situation where there are two people
or businesses that both have something to
gain from one another."
What is a Negotiation?

5. There are trade-offs involved while working to reach
that point of agreement. Michael considers a
negotiation to be a success if both sides are able to
clearly state what they need and get most of their
needs met.
A negotiation is when both sides have something to
gain, and if they move from their current position they
could gain even more.
What is a Negotiation?

6. Are you a good match?

7. Are you a good match?
Before even sitting down to a
discussion, an important element
of working with a partner and
r e a c h i n g a n a g r e e m e n t i s
understanding whether your values
are in alignment.

8. Are you a good match?
For example: if you're working with someone
whose business is built on maintaining the
lowest cost, cheapest product or most
inexpensive service, they're going to maintain
that in a negotiation. If your business is focused
on the best quality product, or the highest-end
service, you're facing a fundamental mismatch
in business principles.

9. Are you a good match?
If your values and goals are
n o t w e l l - a l i g n e d , t h e
l i k e l i h o o d i s t h a t t h e
c o n v e r s a t i o n w i l l b e
unsuccessful.

10. Let's Start at Square One

11. Let's Start at Square One
So you're ready for this business
conversation, or negotiation, and
there's a good chance you know what
you want but you're unsure of how to
get there. You're not alone! We've got a
few basic steps to help you get started.

12. Start with an icebreaker.
Before heading into your meeting, be sure
you've done a bit of research on the other
person's industry and business. If they own an
orchard, try mentioning the recent rainfall or ask
how shipping prices are affecting destinations
for their harvest. Ask something you wouldn't
know by just Googling their business. Basically,
find common ground.

13. Start with an icebreaker.
Use how they respond to your questions as a
way to gauge their interest and their mood.
Are they just trying to move on to the next
item, or are they taking the time to answer
and responding with questions of their own?

14. Don't Get Hung Up On Price

15. Don't Get Hung Up On Price
Don't be so focused on price, instead keep your
profit in mind, which is the cash you'll walk away
with after your costs are subtracted from the
price you're charging. As the owner of your
business, it's absolutely necessary that you
understand each of your costs and expenses.

16. Don't Get Hung Up On Price
If you're in a situation where someone is
pushing you down on price, it's important
to consider how much you can push your
cost down. You want to maintain this ratio
– if your price goes down, your cost must
also go down (to maintain your profit).

17. Don't Get Hung Up On Price
And don't be afraid to leave a deal if it's
not profitable! If this idea of quickly
calculating your costs seems daunting,
make a nice cup of tea and curl up with
your accounting books this weekend until
you truly understand your expenses.

18. Always shoot for the best possible
outcome for a high profit when
starting a negotiation, and keep in
mind the lowest price you can
offer while still making a profit.

19. If Things Start to Turn Sour
If a negotiation conversation turns
negative or derisive, understand that
what's really happening is someone's
needs aren't being met. As the skillful
negotiator, it's up to you to figure out
what those missing needs are.

20. If Things Start to Turn Sour
Clarity and honesty can be your best
friends in these situations. In other words,
just ask what the other person wants!
"What is it that is important to you in this
partnership?"

21. If Things Start to Turn Sour
If the opposing party's goals remain unclear, listen to what
they're *really* saying. There may be a lot of concentration
on price, but there's something underlying.
It could be speed, where they need your product or service
faster. Maybe they need more flexible payment terms or
they have a risk that needs to be reduced. It could be that
they need a different design in the product or a higher level
of performance.

22. If Things Start to Turn Sour
Even if the other party tells you *only*
price matters, the skillful negotiator
knows that there may be more to the
issue. Understanding your customer is
the most important part of these
conversations.

23. Tricks Are For Kids
You've probably heard accounts of "master
negotiators" who have games they play and tricks
they use to get their way. Those rare birds who never
leave a meeting with less than they came for. The
truth is, tricks are for kids. Leave the games for the
Monopoly board. No one's telling you to show all
your cards right away, but honesty is the best policy
here.

24. Tricks Are For Kids
The only thing that's worth concealing are the
elements of your cost structure. You don't
want to turn that over. Do not give someone
the ability to decide what they *are* paying
for and what they aren't. Your product or
service is not up for line item debates!

25. Always steer the conversation towards value
proposition. What can you offer that will increase the
value and importance of your product or service?
Discuss things like speed, customization, size,
shipping terms, features, color and design.
You need to figure out what will make *their* business
successful.

26. FIND MORE INFORMATION on OWN IT
• Visit OWNIT.com for the full post on
negotiations including additional information
and links.
• Check out the rest of our helpful series.
• Join the Network Dedicated to Small
Business Success.
• Connect with thousands of small business
owners like you with our free app.

27. https://www.ownit.com/communities/ownit/posts/686320
Get more information for your small business on OWN IT.

28. OWN IT is a trusted network of small business owners and
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