For entrepreneurs, the art of the deal is an extremely important one. If you want to make an impressive amount of money, you have to know how to get a great business deal. If you’re looking for capital, you need to know how to impress. If you’re looking for a lucrative business partnership, you need to know how to negotiate. Heck, even if you’re not your own boss, you’re still gonna need to negotiate a bigger salary at some point!
If you struggle to get a good deal for yourself, then you could find that you’ll struggle in the world of business. So we’re going to take a quick look at some essential tips for making sure you get amazing business deals time and time again.
Be more personable
When the other party knows more about you, they’re more likely to reciprocate. A good deal can be achieved if the other party likes and trusts you. Sure, you can get a good deal if you don’t know that much about each other. You can take the “keep it strictly business” route. But revealing more about yourself can really help people see things from your perspective. And this is precisely what you want when you’re negotiating!
Look at inspiring examples
There are loads of businesspeople you could look up to as an example of how to negotiate. Some of the most successful and wealthy people in the world got to where they are today because they know how to negotiate. You’ve got the likes of Warren Buffett, about whom there are several influential books. You’ve got Nate Holzapfel, who made his name in sales and communication. There’s also this bestselling book called The Art of the Deal written about a certain someone whose name you may be familiar with...
Remember your priorities
You have to go in with a clear idea of what your priorities are. And not only what they are, but in what order. List your goals and your issues and rank them in order of importance. This gives you a clear idea of what you want when it’s time to get down to business. You’ll be surprised how many things can simply slip from your memory in the heat of the moment! This isn’t information you should hide from the other party, either. Remember that sharing information can be crucial to success, here. When both parties know what their goals are, the negotiations can go forward with minimal disruption.
Have a target price - and a limit
So what price are you looking to get, here? You need to decide on your target price and what many entrepreneurs call your reservation price. Your target price is the desired value - most of the time, this will be a big figure that covers all of your costs and more. Your reservation price is the price at which you will not go any lower. It’s the minimum you need to walk away with. Often, people will go into a negotiation with a clear idea of one but not the other. Big mistake! Make sure you have the right data and realistic expectations.