TKJAIN'S 10 SIMPLE PRINCIPLES FOR ENTREPRENEURS, FOR THEIR SUPPORT, TO ENABLE THEM TO NEGOTIATE BETTER, A SIMPLE GUIDE, A SIMPLE ARTICLE, SIMPLE NOTES, PRACTICAL APPROACH, USEFUL FOR MBA, BBA, B.COM, CA, CS, ICWA AND OTHERS

1. TKJAIN’S SERIES FOR THE FUTURE ENTREPRENEUR
THE ENTREPRENEUR'S GUIDE TO
BUSINESS NEGOTIATION
10 SIMPLE PRINCIPLES OF NEGOTIATION FOR
EVERY ENTREPRENEUR
DR. TRILOK KUMAR JAIN
11/30/2013
The art of negotiation can be best learnt by being close to good negotiators and by practicing it. However, those
who wish to learn, there are some simple guidelines, which can help them. This study material gives those
guidelines. It is necessary for every entrepreneur to learn and practice the art of negotiation in order to survive
and grow. Dr. Trilok Kumar Jain has been teaching, mentoring, guiding, helping, enabling and developing
entrepreneurs. It is his passion to promote entrepreneurship. He organizes workshops, training programmes, and
special sessions on social entrepreneurship, spiritual entrepreneurship and rural entrepreneurship. He has
written many e-books for entrepreneurs which are freely available on the net.
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2. THE ENTREPRENEUR'S GUIDE TO
BUSINESS NEGOTIATION
by : Trilok Kumar Jain
Dean, ISBM, Suresh Gyan Vihar
University, Jaipur, India
jain.tk@gmail.com
Mobile : 9414430763
Author of books on Management
for whom?
Are you an entrepreneur? - this will help you
thow who have become entrepreneurs
those who aspire to be entrepreneurs
those who aspire to train entrepreneurs
THE ENTREPRENEUR'S GUIDE TO BUSINESS NEGOTIATION
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3. thow who aspire to support entrepreneurs
Introduction
Every entrepreneur has to engage in business negotiations. Business negotiations take place
most frequently and it becomes a routine. Every negotiation should end with pleasent feelings
and should generate some strong parners, supporters and friends. Every negotiation should
enable the entrepreneur to emerge stronger. Every negotiation should bring new avenues, new
opportunities and new network. Experience moulds, but I would recommend that every
entrepreneur must learn and practice the art of negotiation. Meet real great negotiators and
learn from them this art. I know one executive, who is truly outstanding in business
negotiations and therefore I send my mentees to him to learn from him and practice this art. I
would like to share with you some principles of negotiation, but truly, the art of negotiation can
be learnt only by face to face discussion and through practice.
tkjain's 10 principles of negotiation for the entrepreneur
1.
Undertake thorough home work before negotiation Entrepreneurs must identify what do they want out of negotiation. This requires
considerable home work. If the negotiation with with workers' union - the entrepreneur
must know about the present status (in terms of working hours, number of workers,
manpower lost, quality, defects, and other issues) and what can they demand from the
union for improvement of the organisation. If the negotiation is with financial
institutions, the entrepreneur must have financial data at tips and must have a
perspective plan for future so that capital investment can be justified. If the negotiation
is with supplier, the entrepreneur must have the comparative data about different raw
materials / machines / inputs and must have a clear idea about minimum standards
that are expected.
2.
Undertake thorough inquiry about other party
before negotiation - the other party has a history - which can be collected
from market sources. This can help the entrepreneur in understanding the preferences,
strengths, weaknesses, ideals, values and goals of the other party. The negotiation will
THE ENTREPRENEUR'S GUIDE TO BUSINESS NEGOTIATION
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4. be effective only if you are fully versed about the history & future targets of the other
party.
3.
Give a pleasent welcome and make the other party
at home - extend a truly warm welcome to the other party. A good environment
will reduce the possibility of tensions and conflicts. Create an environment for
collaboration. Create an environment for joint venture. Let the other party feel that you
really value them and respect them. Let the other party believe that you are sincere in
your approach and you really wish to work with them.
4.
Understand the perspective & offer of the other
party - Listen to the other party and let him make the offer. Dont interrupt in
between. Let the other party share all his ideas and all his perspectives. Let the other
party speak out completely.
5.
Identify what the other party wants as minimum
-
negotiation should start with exchange of expectations. Try to listen first. Listen, listen,
listen - this is the fundamental for negotiation. Probe, and ask so that the other party
speaks out. Take the other party to its minimum levels of expectations. If the other
party says "We want to sell this for Rs 10000" - ask - "is this the minimum prize? " The
other party will not easily speak out their minimum price, and this is the art of
negotiator. Clever negotiator show off that they are very transparent and open up and
force the other party also to open up and get the minimum from the other party.
6.
Identify what will truly help the other party
- there is a
possibility that the other party might not be clear about what the other party wants.
There is also a possibility that communication barriers exist. The other party is not able
to communicate clearly what it wants. There is also a possibility that the other party is
not
7.
Take the Crux (important things) and Leave the
coverings, the emotions, the stories and the
unnecessary part of it - Identify what the other party is saying just for the
sake of speaking - during negotiation, people often speak somethings just for the sake of
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5. speaking. Ignore that and identify the crux. If it is negotiation with trade union - some
union leaders will shout - they have to do it and this is their role. Just be cool and ignore
their shouts and identify what they really want to save their face before their fellow
friends. Identify what the person really wants or what he really want to offer. During a
purchase / sale negotiation, the party may give bombastic data and figures and may
quote ten customers which should make any sense to you. Just dig the basic facts - what
is offer, what is minimum expectation and does it meet your requirement. Dont just get
swayed by their promises - dont every ignore what you are here for (never forget your
own requirements). There is a tendency that emotional presentation may force you to
take a decision which you really didnt want to take before negotiation - so be careful.
8.
Exhaust the other party
- Ask the other party for all the details and
explore him thoroughly. There might be a number of technical details, that you might
miss if you dont ask. There is a principle of management - Caveat Emptor - it means
buyers should be alert and beware. If buyers dont ask for details and later it is found
that the product is not as per buyer's requirement - it is assumed that it is the mistake of
buyer. Therefore it is necessary to explore, ask and inquire about every term and
condition before finalising the negotiation.
9.
Dont show hurry
- my teacher renowned management thinker Prof. M.L.
Mishra used to tell "avoid Hurry Worry and Curry". Any hurry in negotiation will be
fatal. Take time. Dont get emotional, be stress free, be tension free and dont take any
decision under emotional or other pressure. Look at data and try to find out what the
data reveals. Decision should be taken only after evaluating all the options thoroughly.
10.
Evolve a win-win solution -
create a long lasting bondage - negotiation
will generate a lasting solution only if both parties win out of the negotiation. Both the
parties should be able to meet their minimum requirements. Every negotiation should
end with an agreement that will help both the parties and there would be resultant
synergy.
Pl. do read my other articles also - which are freely available on the net : -
Entrepreneurs’ guide in Managing Marketing
Entrepreneurs’ Guide in Managing Finance
Entrepreneurs’ Guide in Managing Human Resources
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6. 21 Principles of Life Management
10 Point Orientation Programme for the Future Entrepreneurs
Beginners Guide to Career Enrichment
Biographies of Great Scholars from Bikaner
Bikaner’s Greatest Role Models of our times
Sujit Lalwani – An Inspirational Leader and Social Entrepreneur
Abhay Jain Granthalaya Bikaner
Harakh Chand Nahata – The Great Social Entrepreneur
11.
I also need your support - I also need your network - I also need your patronage - I also need
you.
THE ENTREPRENEUR'S GUIDE TO BUSINESS NEGOTIATION
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7. 21 Principles of Life Management
10 Point Orientation Programme for the Future Entrepreneurs
Beginners Guide to Career Enrichment
Biographies of Great Scholars from Bikaner
Bikaner’s Greatest Role Models of our times
Sujit Lalwani – An Inspirational Leader and Social Entrepreneur
Abhay Jain Granthalaya Bikaner
Harakh Chand Nahata – The Great Social Entrepreneur
11.
I also need your support - I also need your network - I also need your patronage - I also need
you.
THE ENTREPRENEUR'S GUIDE TO BUSINESS NEGOTIATION
6