Negotiation

2. Give Yourself Power

If you begin negotiations feeling you are in a weak position, you will not get what you want.

2.1 Pay attention to timing.

Choosing the right time can make negotiation a lot easier.

For example:

• Ask for a bank loan when your account is in credit - before you get into trouble.
• Negotiate your tenancy when tenants have moved out, and the landlord needs you.

2.2 Create alternatives.

A forced seller always gets a poor deal.

• Avoid over-reliance on one customer, or one supplier.
• Use your bank, or improve your credit control, so you do not go into a negotiation desperate for cash. (See Financing your business and Credit control).

2.3 Establish what points you are negotiating from the outset.

This stops the other side from bringing new factors into the discussion later, especially when you think you have an agreement.

2.4 Keep key information to yourself.

Do not give away your negotiating position until you have completely established the other side's negotiating position.

For example:

• If a buyer asks what price you are offering, say that it depends on all sorts of things, including volume and timing. Then ask questions about what the product will be used for, how large the order might be, and so on.
• Answers like 'We are keen to do a deal' provide the other side with no useful information, sound positive and allow you to go on asking questions yourself.

2.5 Recognise that relationships win the day.

If someone wants to do business with you, getting a fair deal should be easy.

• Use your contacts to get introductions to people you want to do business with.
• Where possible, get to know someone before any serious negotiations start.