Home Business Insights & Advice The importance of negotiation in business

The importance of negotiation in business

by Sponsored Content
16th Sep 19 1:41 pm

Entrepreneurs in different industries have many ways of building their business. However, most of their approaches have a lot to do with their interaction with other people while making crucial decisions for the survival of their companies.

Building a sustainable business involves building strong relationships with people

It takes more than the sole effort of a founder to grow a business. For an enterprise to scale up and outsmart their competitors, several hands are needed. Determining the right hands to grow your business is a process that should be given much thought. Not only does this mean choosing the right employees and staff, but it also involves selecting the right partners, suppliers and even customers.

In all of these, one way to arrive at a decision is through negotiation, and the only way to arrive at the best decision is through employing the use of the best negotiation strategy.

Negotiation strategies are vital to follow through on your plan for growing your business. Many cases arise where you need to reach an agreement with other parties to keep your business in motion. If you make use of the right approach, you are most likely to strike a deal faster.

Though not every situation requires the same method, if you have a pre-determined strategy for negotiating agreements, that would go a long way in saving you a whole lot of time.

Negotiations strategies for business development

People believe there are three approaches to negotiation:

  • The hard approach: It involves using some competitive edges to get other parties to agree to your terms.
  • The soft approach: It involves conceding to the desire of the other party. It often helps in building a relationship with the other party as they benefit from the negotiator.
  • The principled approach: Involves identifying objectives and seeking options that best satisfy both parties.

Of all the three options, the principled negotiation is the most universally adopted as the best. For one, it is the most flexible, which is what a negotiation should focus on.

The fault with the hard approach is that it is highly competitive and easily overlooks the interest of the other party. The flexible approach leaves the negotiator unsatisfied, and it pitches interest with the other party, in the end, defeating the purpose of the negotiation.

The principled approach to negotiation hangs somewhere in the middle. It is rigid enough to communicate the interest of the parties involved and flexible enough to provide options that satisfy the benefit of all stakeholders. Instead of putting emotions first, a principled negotiator understands the other party’s concern(s). It also involves identifying the basic needs and motivations of the other party. Focus on the interests and creative options that benefit both parties in the long-run.

The principled negotiation approach is timeless; it works for all business models and in all stages of business development. Whether you are a budding entrepreneur or interested in building your career, you need to master the art of strong negotiations. A good number of resources are available online to help groom your negotiation skills. The Negotiation Society gives exclusive access to negotiation webinars and events around the world.

Leave a Comment


Sign up to our daily news alerts

[ms-form id=1]