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4 Key Negotiation Tips for Small Business Owners

Being a solid negotiator is a trait most successful small business owners possess. In many instances, coming to an agreement or making a deal with someone can literally be the difference between making substantial income and struggling to get by financially. 1800Accountant offers the following negotiation tips to give you the best chance of scoring a deal with others:

1. Be well-versed on the negotiation topic at-hand.
Doing in-depth reading and research is a cornerstone of being a successful negotiator. It’s imperative to read up on the issue at-hand that you’re negotiating on. This could be a manufacturer you are looking at having produce items for you or a business partner who you think would greatly complement your skills to enhance your entrepreneurial enterprise. You should obviously know your own business inside-and-out, but the same goes for the company or individual you plan to negotiate with. Research this entity or person, and come to meetings armed with as much information as you can find out. This will significantly increase your chances of striking a deal.
2. Write down your goals.
Before you dial your smartphone or stroll into a meeting room to negotiate any type of deal, it’s important to have your specific goals down on paper. How would a deal with someone benefit you personally? How would it benefit you professionally? Even more importantly, how would it benefit your small business and the revenue it generates? These goals will play a major role in how you proceed with a meeting that involves negotiating.
3. Know your options on coming to a compromise.
Because setting up an agreed-upon arrangement with someone should be both mutually beneficial and satisfying, you should have a good handle on how much you would be willing to compromise with someone else. Write down all of the possible outcomes there could be in establishing a deal. Which outcome(s) are most desirable to you? Which outcomes would require the most amount of compromise on your part and on the part of the other person? Weigh your options on what you’d be willing to give up to make an agreement. Never forget that negotiations involve two or more parties, so remember that those whom you’re negotiating with also have a stake in the issue at-hand.
4. Recognize when you just can’t make a deal.
We all hate giving up, but sometimes a deal simply isn’t meant to be in the small business negotiation world. As one of the many small business owners across this great nation of ours, you should work on recognizing when you just won’t be able to strike a deal with someone. Perhaps an angel investor can’t give you the startup capital you’re seeking. Maybe a potential employee you are interviewing is just not qualified for a certain job. Never force an issue if there is no way at all to make a compromise. Thank the person you’re communicating with, and then move on to any other potential deals in the hopper. Remember that negotiating is a skill you can develop over time, so learn from your missteps to be better at it down the road.
This article was originally published by 1800Accountant
Published: July 3, 2014

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1800Accountant is a national accounting firm that assists small and new businesses in all 50 states, Canada, Australia and the UK. Our mission is to provide small businesses with affordable accounting and tax preparation services. Our experienced team of over 100 in house tax professionals is ready to start working for your business today. Call for a free consultation.

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