Steps
- Do your work before initiating the deal. Prior research and due diligence is always invaluable during any negotiation process. It will show the vendor that you have a true picture of their company; this can be used to strengthen your bargaining position. A good purchaser will attempt to discover any weaknesses in a company so this can be exploited; on the other side a good vendor will attempt to highlight the company s strengths, and make sure the company is ready for the deal.
- Set goals from the very start so both sides are fully aware of what they want to get out of the negotiation process. Having a clear plan for both sides should prevent either side from taking the lead during the negotiation process. Both parties should keep to their objectives: a good negotiator will always win the more important issues and let the other party to win the minor ones.
- Understand basic psychology. A common tactic is for the purchaser to try and understand the aspirations of the vendor. Most people become emotionally attached to their business and could have personal friends within the staff. Understanding this is a very important tool for a successful negotiator. A good tactic used by the vendor would be to highlight how well his particular sector is growing year and year and how well the economy is doing and how well the purchaser will fair in the future.
Tips
- To be a good negotiator you have to have clear goals and good communication skills.
- Have integrity. Personal Integrity is knowing what you know.
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