How to succeed in a business negotiation

You want to make a successful business negotiation ? You are in the right place. To carry out any commercial transaction, thehe negotiation will be an absolute necessity. Sometimes these negotiations will shape formal deals with clearly defined goals. In contrast, other business negotiations are an ongoing process. Instead, they evolve in the way that is appropriate best to the commercial objectives of the parties.

If you are looking to succeed as a business professional, strong negotiation skills will be essential. Through successful business negotiations, you can begin to generate more revenue, as well as better profits. Conversely, if you fail to negotiate effectively and confidently, these goals will be severely delayed. Successful negotiators in business use a specific set of skills.

Article to read: Types of online advertising 

In this blog post, Finance de Demain explains how become an expert in commercial negotiation. But before you start, here's how to build a Action plan to build an online business. Let's go !!

🌻 What is a business negotiation?

A commercial negotiating, it's a bit like a poker game between two companies. Each has their cards in hand and tries to get the best deal possible. Concretely, it often happens around a table, with representatives from both companies facing each other. On one side, you have the seller who wants to get a good contract. On the other, the buyer who is looking to have the best product or service at the lowest price.

The thing is, no one wants to show all their cards at once. It's a constant back and forth: We propose, we counter-propose, we bargain. You have to know when to push your advantage and when to make concessions. And it's not just the price that's at stake. We also negotiate delivery times, payment terms, guarantees, and many other details of the contract. Each point can tip the balance.

In the end, a good negotiation is when both parties leave satisfied. The ideal is to find common ground where everyone wins a little. But let's not kid ourselves, there is always a little tension in the air!

🌻What not to do in a business negotiation

Ah, the mistakes to avoid in commercial negotiation? There are a few that can really weigh you down. Let me tell you about them. First, never arrive empty-handed. Showing up unprepared is like skydiving without checking your gear. You're going to fail, that's for sure. Know your product, your market, and above all, find out about your interlocutor.

Then there is the trap of the oversized ego. Some people arrive in "I'm the king, you're going to do what I say". Bad idea. It puts the other party on the spot right away, and you can kiss constructive negotiations goodbye. You also shouldn't play poker. Lying or exaggerating may seem smart at the time, but it backfires in the long run. Trust, once broken, is dead.

Another thing to avoid: sticking to your guns. If you're not ready to compromise, you might as well stay home. A negotiation is an exchange, not a monologue. And then, there are those who lose their cool. They get angry, raise their voices, or even insult the other party. Result? A rotten atmosphere and deadlocked negotiations.

Finally, don't neglect the details of the contract. Some people are in such a hurry to conclude that they skip the small print. And bam, they end up with uncool clauses that they didn't even see coming.

🌻 What to do when negotiating

First, listen. Really. Many people think that a negotiation, it's just talking. But actually, you have to listen. Understand what the other person really wants, not just what they say. Then, ask questions. That allows you to dig deeper, to better understand the other person's needs. The more you know, the more cards you have in your hand.

Be flexible. Having a plan is good, but you have to know how to adapt. If you see an opening, grab it. Don’t hesitate to take breaks. This allows you to think, to calm down if things get heated, or to consult with your team. Use silence to your advantage. After making an offer, be quiet. Let the other person react. Often, silence pushes the other person to talk and make concessions.

Look for win-win. Propose solutions where everyone wins. It creates an atmosphere positive and facilitates agreement. Stay professional, even if things get stuck. Stay calm, be respectful. It can make the difference between a failure and a last-minute deal. And don't forget to recap regularly. It avoids misunderstandings and shows that you're paying attention.

🌻 6 Key Business Negotiation Strategies

Come on, I'm going to unpack 6 strategies that are successful in commercial negotiation. Hang in there, we're going to go into detail.

1. Preparation is the basis of everything

Frankly, if you ignore that, you might as well stay home. You have to know your file inside out. What does that mean? Well, you have to master your products, your prices, your margins. But that's not all. Find out as much as you can about your interlocutor. Who is it? What are their needs? Their constraints? The more you know, the more leverage you have.

And then, prepare different scenarios. Imagine the objections that could be made to you and prepare your answers. It's like in chess, you always have to be several moves ahead.

2. Active listening, your secret weapon

It sounds silly, but truly listening is a rare talent. Let the other person talk, ask questions to dig deeper. You're not there to give a monologue, but to understand what the other person really wants. And when I say listen, I don't just mean the words. Observe body language, tone of voice. It can give you valuable information about what the other person really thinks, beyond what they say.

3. Flexibility, or the art of dancing tango

In negotiation, you have to know how to waltz. You have a plan, that's good. But if you cling to it like a mussel to its rock, you're in trouble. The other person makes an unexpected proposal? Think about it. It doesn't fit with your initial plan but it could be interesting? Adapt. It's a bit like football. You can have the best tactics in the world, but if you don't know how to adapt to your opponent's game, you're done for.

4. Win-win, or how to make everyone happy

Yeah, I know, it sounds a bit cheesy. But trust me, looking for a win-win solution is often the best long-term strategy. The idea is to not see the negotiation as a battle, but as a collaboration. Try to understand the other person's interests, not just their positions. If you find a way to satisfy their needs while achieving your goals, you've won.

5. Time management, your best ally

Time is money, as they say. In negotiation, it's a real weapon. Use it to your advantage. If you're not in a hurry, take your time. It can put pressure on the other party. But be careful, you have to know when to speed up too. If you feel that the other party is keen to conclude, push the advantage. It's a bit like poker, you have to know when to raise and when to stall.

6. Self-control, or how to keep your cool

Last strategy, but not least: keep calm no matter what. A negotiation can be stressful, frustrating, and annoying. But if you lose your cool, you've lost it, period. Take a deep breath, take breaks if necessary. Stay professional, even if the other person gets angry or is being provocative. It's the one who stays calm who often ends up winning.