The Importance of Good Negotiation Skills to Your Business Success

Having good negotiation skills can be the difference between success and failure in the business world. Those that know how to negotiate tend to rise to the top of whatever industry they are in. At the same time, those that do not know how to negotiate tend to stay where they are or fall backwards.

If you want to be successful in the industry, a study of developing negotiation skills should be at the forefront of your mind. Here are a few things to consider about the importance of good negotiation skills to your business success.

One of the primary benefits of having good negotiation skills is that you will be able to save money. If you represent your business or if you are negotiating for yourself, you will be able to negotiate a cheaper price when buying something. When making large purchases, you need to be able to negotiate with the sales representative and get a better price. If you simply take the price that is being offered to you, it is very possible that will get taken advantage of. Learning how to negotiate will allow you to save substantial amounts of money over a period of time.

The Importance of Good Negotiation Skills to Your Business Success

Another important reason for developing good negotiation skills is that you will be able to make more money for your business as well. If you are trying to sell a product or secure a contract, you need to be able to negotiate in order to make it happen. By doing this, you will be able to secure a larger selling price and increase your profit margins. Increasing profit margins is one of the biggest objectives for most businesses. If you can learn how to do this, you will be invaluable to your employer and this will be directly related to your business success.

In addition to being a better negotiator, you will also develop several other traits that are essential in business. Many of the same skills that you use in negotiation will translate over to other areas of the business.

For example, when learning good negotiation skills, you will learn how to be an effective listener. In order to be successful in negotiation, you have to be able to listen to the other person to see what they want. This skill will be very valuable to you in other areas of the business. If you are a manager, you will need to be able to listen to your employees to see what motivates them. If you are dealing with customers, you need to be able to listen to what they are telling you so that you can find a product or service that matches their needs.

When you are aiming to achieve business success, developing good negotiation skills should be at the top of your priority list. This is by far one of the most important skills that you can develop as a businessperson. It can easily take you from where you currently are to where you eventually want to be.

The Importance of Good Negotiation Skills to Your Business Success
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Discover how you can learn good negotiation skills that will help you save more, keep under your budget, and make more money at SurefireNegotiationTactics.info

watch mobile phone Discount Crl Brushed Stainless 2 X 3 1

Negotiation - Planning For A Successful Outcome

In any kind of negotiation the planning stage is probably the most important. Too often we go in badly prepared and end up giving concessions that reduce the overall profitability of the final deal. The importance of planning is in having a very clear idea before entering into the negotiation i.e.

o What are my objectives?

o What does the other side wish to achieve?

Negotiation - Planning For A Successful Outcome

o What information will influence the final outcome of the negotiation?

o What concessions can I make?

o How am I going to achieve my objectives?

o What part will other people play in the negotiation?

Generally, the more time that is spent in planning and preparing for the negotiation,
the more beneficial will be the final outcome.

Objectives:

Before entering into the negotiation, you need to have a clear idea of your objectives
and try to work out those of the other side. Ask yourself the following questions:

o What exactly do I wish to achieve from this negotiation?

o Which of my objectives:

- Must I achieve?

- Do I intend to achieve?

- Would I like to achieve?

o What options or alternatives would be acceptable to me?

o What are the other sides. objectives?

o How does the other side see the negotiation?

Information:

It has often been said that information is power. In any negotiation, there will be four types of information that is important to the final outcome.

o What information do I have that the other side has also?

o What information do I have that the other side does not have?

o What information do I need to have before negotiating with the other side?

o What information does the other side need before it can negotiate with me?

This can be particularly important when negotiating with people who concentrate
on price issues.

o What other things are important to this person?

o What pressures does he have on him to conclude the deal?

o How well is his company doing at the moment?

o How important is it that he deals with my company? etc.

The early phases of negotiation consist of both sides finding out more information
before talking about a specific deal or set of alternatives. For example, if you find out
the other side has a time deadline that only your company can meet, it may give you
the chance to negotiate on more favourable price. If you know that the other side
has recently expanded their production capacity, you may be able to negotiate more
favourable terms in return for a commitment to buy certain volumes over an agreed
time period.

By spending time as part of your preparation in listing what you already know and
what you need to know, you will give yourself a better chance to negotiate well on
your company's behalf.

Concessions :

Negotiation is a process of bargaining by which agreement is reached between two
or more parties. It is rare in negotiation for agreement to be reached immediately or
for each side to have identical objectives. More often than not, agreements have to
be worked out where concessions are given and received and this is the area where
the profitability of the final outcome will be decided.

When preparing for negotiation, it is advisable to write down a realistic assessment
of how you perceive the final outcome. Find out the limits of your authority within
the negotiation and decide what you are willing and able to concede in order to
arrive at an agreement, which satisfies all parties.

Concessions have two elements; cost and value. It is possible during negotiations to
concede issues that have little cost to you but have great value to the other side. This
is the best type of concession to make. Avoid, however, conceding on issues that
have a high cost to you irrespective of their value to the other side.

When preparing for negotiations, ask yourself the following questions:

o What is the best deal I could realistically achieve in this negotiation?

o What is the likely outcome of the negotiation?

o What is the limit of my authority?

o At which point should I walk away?

o What concessions are available to me?

o What is the cost of each concession and what value does each have to either side?

Strategy:

Planning your strategy is important in negotiation. Once you know your objectives,
you need to work out how you are going to achieve them. It is also useful to try and
see the negotiation from the other side and try and work out what their strategy will
be.

During the negotiation there will be opportunities to use various tactics and you
need to decide which of these you feel comfortable with and at the same time recognise the tactics being used by the other side. Ask yourself the following questions:

o How am I going to achieve my objectives in this negotiation?

o What is the strategy of the other side likely to be?

o What tactics should I use within the negotiation?

o What tactics are the other side likely to use?

And Finally - Tasks :

If you go into negotiation with a colleague or colleagues, you need to decide during
the preparation phase:

o What role will each team member take in the negotiation?

o How can we work together in the most effective way?

Some teams of negotiators appoint team leaders, note takers, observers and
specialists, each with their own clearly defined authority and roles to perform.
Having a clear understanding of roles within the negotiation will make the team
approach much more effective.

Copyright © 2007 Jonathan Farrington. All rights reserved

Negotiation - Planning For A Successful Outcome
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

To find out more about the author or to subscribe to his newsletter for dedicated business professionals, visit: http://www.jonathanfarrington.com

You can also read his highly informative and popular weekly blog at: http://www.jonathanfarringtonsblog.com

watches mobile phone Low Low Price Competition Engineering 3002 43 Steel Fenderwell

10 Guidelines For Effective Negotiation Skills

Never enter into any agreement or negotiation from a point of desperation. The moment you show how desperate you are, you disarm yourself of the bargaining power. The value of the transaction will be compromised by your appetite & apparent desire. Rather stand back, gather yourself & your thoughts & reschedule the talks. Often we place a price tag on goods based on our needs. No one desires to spend more than the real value of product or service. As african businessmen, politicians and the like we have missed the power of effective negotiation hence time, value and resources have gone to waste. Where we potentially could have reaped $millions, we have settled for a few $thousands which of course could pay a few bills and get an economy going. Question stands whether we adequately calculate and plan and prepare for negotiations, deals or agreements or we see the dotted line as the partying of the red sea, an imminent breakthrough and forget the fine print. I have watched with great interest how sudden bursts of joy at the signing of mergers between companies and political parties, even churches have turned into a series of mourning experiences as the dotted and signed document is activated. Before you can have the famous handshake to signal an agreement, consider your actions closely. Decisions you make at this point have long lasting effects on where your organization will be in the next foreseeable future. Realize that those who have entrusted you with the negotiations responsibility bank on you to make decisions in the best interest of the organization.

Here are a few negotiation guidelines

• Do some research and investigations on the other party before the meeting. Check trade references and outcomes of previous agreements the other party entered into. Use your checklist of non-negotiable to determine if you should proceed with negotiations. It may not be necessary to enter into any negotiation if the other party fails the "non-negotiable" test in advance.

10 Guidelines For Effective Negotiation Skills

• Prepare questions in advance which seek to get clarity on any clauses on documents you have previously received. Get your legal representative to look into and review contracts or agreements. Preparation entails anticipating questions and answering them before you engage. It entails presenting your best case and alternatives when called for hence it is important. There is nothing wrong in preparing for a stalemate position and how to break beyond it.

• Go into major meetings with a witness(es) or people who can help with discussion. This could be your Personal Assistant or senior Manager in your team. You may need someone who can give you hints and tips. Someone whom you can use eye contact with to determine whether you should proceed or not. Sometimes when you are alone negotiating with a panel you lose on the basis of numbers as you may have 5 active brains thinking ahead of you.

• Do not rush to make the decision - Always look at the negotiating party directly in the eye and avoid being bullied into making a decision here and now. The push must never be just to ensure the agreement is signed off without the parties taking ownership of the decisions they are making. Whenever there is a rush, it must flag within you that there could be something hidden in the agreement. Take your time. You don't have to sign instantly.

• Understand the time factor - There is always a time conducive enough for negotiations to take place. You will not negotiate effectively when you are in a hurry or when there is fatigue on either side of the negotiation table. Depending on how tense the negotiations can be, it is healthy to call for a "time out" so that you regain yourself.

• Avoid emotional bargaining - Separate your own emotions from the issue being negotiated on. When you become angry or over excited you lose your composure and negotiating power.

• Avoid attacking the person but look at the matter under negotiation - There is a tendency to address personalities at the expense of the matter under discussion or negotiation. While it is important to know the kind of person you are negotiating with, the issue on hand supersedes personalities.

• Pay attention to detail - In the event that you get documents in the meeting without prior reading, it is important to read the fine print or give a specialist within your team to scrutinize while you discuss. The fine print is usually the source of all problems in any negotiation.

• Be prepared for compromise - Before you get into a negotiation process, you should know both your best case and worst case scenarios, the benefits and demerits of each case. You should obviously start the negotiation by putting on the table your best case. As you bargain, a little bit of compromise is necessary but not to go below your worst case scenario. I have heard it said that "in a negotiation, both parties must leave feeling like they won some and lost some".

• Never make your desperation apparent to the other party - It is important to do a SWOT analysis of yourself and your team that you are going with. Once you know your strengths, you will not let someone with no deep knowledge of the current issue on the table lead the discussion. Do not expose the weaknesses you may have as the other party will ride on that making your proposal futile.

"Your ability to negotiate, communicate, influence and persuade others to do things is absolutely Indispensable to everything you accomplish in life"
Brian Tracy, American self-help author

10 Guidelines For Effective Negotiation Skills
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Rabison Shumba is a young African entrepreneur who has interests in Information and Communication Technology, Agriculture and Mining. He is also a motivational speaker, trainer and author. His book, The Greatness Manual and various online articles are tools for personal and professional development. Together with 100 other Career Experts, Rabison co-authored the 101 Great Ways to Enhance your Career. Rabison has a personal vision of impacting the lives of children in marginalized communities by creating platforms for career counsel and guidance, information empowerment and capacity building through the Greatness Factory Trust, where he currently holds the position of Chairman of the Board of Trustees and Acting Executive Director. He is actively involved in the organization of career enhancement and guidance colloquiums to propel and inspire both young and mature professionals to greatness. His areas of expertise include strategy, leadership, personal and professional development. Rabison is married to Jackie, and they have two daughters. They reside in Harare, Zimbabwe. http://www.greatnessmanual.com or http://www.lulu.com/spotlight/rshumba

cell phone watches Low Low Price Competition Engineering 3002 43 Steel Fenderwell

The Key to Successful Cross Cultural Negotiation

INTERNATIONAL BUSINESS NEGOTIATIONS

The impact of international business in domestic markets compels us to ask a question: How can we survive in this global playing field, and what can we do to run our businesses more effectively?

Nowadays, businesses of all sizes search for suppliers and customers on a global level. International competition, foreign clients and suppliers may become a danger, but they may also create huge opportunities to develop our business. The increasingly global business environment requires managers to approach the negotiation process from the global business person's point of view.

The Key to Successful Cross Cultural Negotiation

This approach includes aspects which are usually unimportant in domestic negotiations. Some of the components of a cross cultural negotiation process are more complex and difficult, but will increase our success in avoiding barriers and failures in the international business arena.

When doing business internationally, we need to consider:

The negotiating environment Cultural and sub-cultural differences Ideological differences Foreign bureaucracy Foreign laws and governments Financial insecurity due to international monetary factors Political instability and economic changes

If we consider the fact that negotiating with our fellow citizen is not an easy task due to many individual differences, it would be reasonable to suggest that negotiating with foreigners may be even more difficult. The way we perceive and create our own reality may be completely different to our counterpart's way of thinking, behaving and feeling. Unfortunately, knowledge of any foreign language is not enough to face and solve the problem. Language is a cluster of codes used in communication which, if not shared effectively, can act as a barrier to establish credibility and trust.

We need more effective tools, and the most important is knowledge of all factors that can influence the proceedings. Nations tend to have a national character that influences the type of goals and process the society pursues in negotiations. This is why specifying and understanding cultural differences is vital in order to perform successfully in inter-cultural communication. As we better understand that our partners may see things differently, we will be less likely to make negative assumptions and more likely to make progress when negotiating.

Factors influencing cross-cultural negotiations:

Negotiating Goal and Basic Concept:

How is the negotiation being seen? Is mutual satisfaction the real purpose of the meeting? Do we have to compete? Do they want to win? Different cultures stress different aspects of negotiation. The goal of business negotiation may be a substantive outcome (Americans) or a long-lasting relationship (Japanese).

Protocol:

There are as many kinds of business etiquette as there are nations in the world. Protocol factors that should be considered are dress codes, number of negotiators, entertainment, degree of formality, gift giving, meeting and greeting, etc.

Communications:

Verbal and non-verbal communication is a key factor of persuasion. The way we express our needs and feelings using body language and tone of voice can determine the way the other side perceives us, and in fact positively or negatively contributes to our credibility.Another aspect of communication relevant to negotiation is the direct or indirect approach to exchanging information. Is the meaning of what is said exactly in the words themselves? Does "...it's impossible" really mean impossible or just difficult to realise? Always use questions to identify the other side's needs, otherwise assumptions may result in you never finding common interests.

Risk-Taking Propensity: Uncertainty Avoidance:

There is always risk involved in negotiations. The final outcome is unknown when the negotiations commence. The most common dilemma is related to personal relations between counterparts: Should we trust them? Will they trust us? Certain cultures are more risk averse than others, e.g. Japan (Hofstede 1980). It means that less innovative and creative alternatives are available to pursue during the negotiation, unless there is a strong trust-based relationship between the counterparts.

View of Time:

In some cultures time is money and something to be used wisely. Punctuality and agenda may be an important aspect of negotiation. In countries such as China or Japan, being late would be taken as an insult. Consider investing more time in the negotiating process in Japan. The main goal when negotiating with an oriental counterpart is to establish a firm relationship, which takes time. Another dimension of time relevant to negotiation is the focus on past, present or future. Sometimes the past or the distant future may be seen as part of the present, especially in Latin American countries.

Decision-Making System:

The way members of the other negotiating team reach a decision may give us a hint: who we shall focus on providing our presentation. When negotiating with a team, it's crucial to identify who is the leader and who has the authority to make a decision.

Form of Agreement:

In most cultures,only written agreements stamp a deal. It seems to be the best way to secure our interests in case of any unexpected circumstances. The 'deal' may be the contract itself or the relationship between the parties, like in China, where a contract is likely to be in the form of general principles. In this case, if any unexpected circumstances arise, parties prefer to focus on the relationship than the contract to solve the problem.

Power Distance:

This refers to the acceptance of authority differences between people. Cultures with low power distance postulate equality among people, and focus more on earned status than ascribed status. Negotiators from countries like Britain, Germany and Austria tend to be comfortable with shared authority and democratic structures. When we face a high power distance culture, be prepared for hierarchical structures and clear authority figures.

Personal Style:

Our individual attitude towards the other side and biases which we sometimes establish all determine our assumptions that may lead the negotiation process towards win-win or win-lose solutions. Do we feel more comfortable using a formal or informal approach to communication? In some cultures, like America, an informal style may help to create friendly relationships and accelerate the problem solving solution. In China, by comparison, an informal approach is proper only when the relationship is firm and sealed with trust

Coping with Culture

Negotiating in the international environment is a huge challenge for any negotiator. How do we cope with the cultural differences? What approach is more efficient and proper when dealing with Japanese, Americans or Germans? There are some very helpful guidelines we can apply (Salacuse, 1991):

Learn the other side's culture:

It is very important to know the commonest basic components of our counterparty's culture. It's a sign of respect and a way to build trust and credibility as well as advantage that can help us to choose the right strategies and tactics during the negotiation. Of course, it's impossible to learn another culture in detail when we learn at short notice that a foreign delegation is visiting in two weeks' time. The best we can do is to try to identify principal influences that the foreign culture may have on making the deal.

Don't stereotype:

Making assumptions can create distrust and barriers that expose both your and the other side's needs, positions and goals. The way we view other people tends to be reserved and cautious. We usually expect people to take advantage of a situation, and during the negotiations the other side probably thinks the same way, especially when there is a lack of trust between counterparts. In stead of generalising, we should make an effort to treat everyone as individuals. Find the other side's values and beliefs independently of values and beliefs characteristic of the culture or group being represented by your counterpart.

Find ways to bridge the culture gap:

Apart from adopting the other side's culture to adjust to the situation and environment, we can also try to persuade the other side to use elements of our own culture. In some situations it is also possible to use a combination of both cultures, for example, regarding joint venture businesses. Another possible solution is to adopt a third culture, which can be a strong base for personal relationships. When there is a difficulty in finding common ground, focusing on common professional cultures may be the initiation of business relations.

The Key to Successful Cross Cultural Negotiation
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Michael Zieba is the Founder of The Strategic Negotiation Institute (SNI)
http://www.strategicneg.com

Gain unparalleled negotiation skills at The Strategic Negotiation Institute.

Our core competency is to help organisations save money, increase profits and maximise the value of their negotiations. Specialists in sales, procurement and executive negotiations, we design and deliver customised business negotiation solutions that go far beyond conventional negotiation wisdom and unlock unconventional value.

cell phone watches Order Emf And Anti Aging Bracelet E Q Hot Deals Castana Round Dining Table Discount Everlast Protex 3 Evergel Training Gloves