In any business, you are going to have to negotiate at some point, and the better you are at this crucial skill the better off your business will be. Negotiation is the process of bringing two parties together, and doing that successfully requires skill, experience, strategy, and effective communication. Juggling those qualities while keeping the interests of both parties in mind truly is an art form.
But it doesn’t have to be a zero-sum game. You have to understand the other party’s interests and goals and be able to find common ground. More often than not, the two parties have competing objectives, and there will have to be compromise. If you can manage conflicts and differences in a constructive way, you’ll be well on track to come to a mutually beneficial agreement.
The Negotiation Has Already Begun
Negotiating for your business starts early on, when you need to acquire financing or negotiate a commercial property lease. These are just two things that can impact the success of your business for a long time to come. In fact, if you own a business and haven’t run into a negotiation, I’d say that only means you’ve missed the opportunity to do so. The other party isn’t necessarily going to tell you there is room to negotiate, so you should always ask. It certainly doesn’t hurt.
One thing I always recommend when looking for a favorable outcome is to put yourself in their shoes but don’t assume too much. They want to come to an agreement just like you do, so even if their product or service is in high demand, they may still be willing to give up a little ground to make a deal now. They need customers too. They want happy clients, repeat business, and positive word of mouth. When both parties walk away happy, that presents a genuine value above and beyond the agreement at hand.
Knowledge Is Power
If you have no negotiating skills at all, or the very thought of negotiating fills you with anxiety, then just do your research and arm yourself with information. No matter the transaction, someone somewhere has already navigated it successfully. Even if they didn’t, you can learn from their mistakes. If you’re trying to find out what a fair price is or what sort of rates you qualify for, you can find that out pretty easily. If you are investing in real estate, you should be able to find out the history of the property and what it sold for or rented for in the past. Arm yourself with the knowledge you need to negotiate successfully, and you’ll be less anxious and better prepared to reach a favorable agreement.
Know the Needs, the Wants, and Know the Difference
The most successful agreement is a mutually beneficial resolution that meets the needs of everyone involved. But now it’s time to distinguish between your needs and wants, and those of the other party. Now, people can want just about anything, but what they need is what makes or breaks a deal. The wants are the areas you can negotiate more aggressively on. To tell the difference takes an experienced negotiator.
A negotiation is a bridge between two shores, and you wouldn’t build a bridge without an engineer. If the task of entering negotiations still seems daunting, consider acting through an experienced agent or consultant. Someone that’s been through hundreds of negotiations can act as a sherpa of sorts to properly equip you to summit the mountain top.
Pappas Commercial Properties has handled all kinds of business transactions for over fifteen years in and around Fayetteville. I am a Certified Commercial Investment Member (CCIM) which enables me to represent your interests in commercial and investment real estate, and we also handle property management, leases, and sales. No matter the deal, we’ve been there, done that, and will work tirelessly to ensure the best outcome for our clients. Shoot me an email today at firstname.lastname@example.org and set up a time we can chat. It would be my pleasure to help you get started to attain your goals in 2023 and beyond.
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