Top negotiation tips to improve your bottom line

If you were to pick the brain of anyone who’s been a biz ownership for a while, they’d talk your ear off with now-I-knows and wish-I-knew-thens. 

One aspect of running a small-to-medium business that requires skill and experience (and sometimes, the benefit of hindsight) is the art of negotiation. We feel you, you need time and experience with client relationships to develop that beauty of hindsight – so, listen in. We’ve got some handy tips for you to implement from today.

You are in negotiations every day—with clients, vendors, partners, or even members of your own team. Here, negotiation isn’t a sinister or adversarial word; it’s more like a business dance—a means of manoeuvring towards your short—and long-term goals in a mutually beneficial way.

Successful negotiation skills can make or break financial growth, so here are our top tips for improving your bottom line. 

Know thyself

It goes without saying (but we’re saying it anyway!) that good negotiation isn’t confined to the negotiation itself. Putting yourself in the best possible position to be able to negotiate is paramount. 

Knowing what’s unique about your product or service and even more importantly – how to capture that uniqueness in words, is the first step in a successful negotiation. You may know your offering like the back of your hand, but this is one situation where talking the talk is just as vital as walking the walk. 

In this case, knowing thyself involves having succinct talking points on hand that encompass your brand, your mission and vision, your product(s) and/or service(s), and even lived examples of client or customer satisfaction. 

Chances are not all of this information will come up in negotiations, but having it all at the ready will help you to feel cool, calm and confident. 

Know what you want

Still in the pre-negotiation stage here. There’s little point going into a negotiation without a clear end goal in mind. Articulating that goal to yourself is important. Ask yourself “what do I want to achieve here?”, “what is the best case scenario?” and “what does an acceptable compromise look like?”. 

The answers to these questions will allow you to steer the negotiation towards your desired objective, while preparing you for potential surprises along the way. 

For example, you could be meeting a new supplier for a particular product you stock. Going in with a maximum and minimum that you’re willing to pay, while knowing the kind of relationship you like to have with suppliers, will allow you to negotiate with authority and ease. 

The power of rapport

American businessman (and former hostage negotiator!) Chris Voss said that “the language of negotiation is primarily a language of conversation and rapport.”

In a business negotiation, agreeing to costs and terms are the typical desired outcomes . But there’s another negotiation going on at the same time – the human connection between parties. 

Think back to your work relationships over time – which were the most memorable? Chances are they were with those whose company you enjoyed. 

The same goes for negotiations. People are far more likely to agree with you if you’re able to meet them on a human level. This involves active listening, showing empathy, finding common ground (sometimes about subjects completely removed from business), and keeping your body language open and warm. 

Look beyond the negotiation

In many cases, a successful negotiation is one that paves the way for future negotiations. Long-term relationships lead to security and predictability, and can allow for cash flow projection.

Over time, negotiations with longer-term parties can become easier and more fluid. A shorthand can evolve. This saves time and alleviates stress and can foster a company reputation of trust and reliability. 

Know when to stand your ground…or even walk away

Compromise is one thing. Giving into an outcome that will hurt you in the long run is another. Again, this is why setting clear objectives and contingency plans is so important. 

If the other party draws a line in the sand that sits outside the constraints of acceptable compromise, it’s best to politely decline and step away from the negotiation. 

This can serve you in several ways. You show conviction. You stay true to your personal standards. You also give the other party the opportunity to reconsider their position (and if you really need to, reconsider your own).

Strive for balance

As with most pursuits, success lies in the balance of things. Asserting your position doesn’t mean being pushy. Knowing what you want doesn’t mean being rigid. Building rapport doesn’t mean acting unprofessional. 

The more practised you are at negotiating, the more you’ll strike that balance. You’ll also learn that what works with one party may not work with another. 

As business is conducted between people, it can’t be separated from the human condition. We are all flawed, and negotiations are rarely perfect. Showing empathy to both yourself and the other party will ultimately help you succeed in the conference room, and thus, improve your bottom line.