Categories: Marketing

Negotiation Skills for Entrepreneurs

In many negotiation situations, one party is trying to “sell” something to the other, without overviewing how they are also adding value to the party’s overall services. To combat this, I make an effort to offer ideas or suggestions for the individual, group, company, etc. that I am trying to sell a service to; which will create additional streams of revenue based on internal solutions. These solutions will likely increase the party’s ROI long after the initial engagement is completed.

Surprisingly, another important negotiation tactic is inquiring from the other person what their opinion is on the value of my presented solution. After that, I can more easily explain to them why their perceived value is appropriate, or less than what it is in actuality. In doing this, I usually give them an approximated quantitative figure, that may or may not be what the final result is. This pre-frames them for what price they will need to pay, as well as what they can realistically expect to get back as a concrete return on their investment.

Something vitally important to business negotiations is ensuring that your solution being presented is based on logic. Being able to qualify your quantitatively is a good way to measure this.

Whether your perceived ROI is tangible or perceived, it’s important to ensure that the party you are negotiating with is aware of the realistic value of your solution. I have found that it is never a good idea to email a proposal to a hopeful client; this can be the kiss of death. It’s important for a proposal to be fully explained in a face-to-face format, so that your thought process can be fully integrated with the client’s.

Giving examples of experiences of how to get faster results, thinking of their business in terms of a partnership, working with them in areas other than the initial plan and having them be a part of crafting solutions will all add real value to enabling a successful negotiation between two engaging parties.

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Ryan

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