Negotiation plays an important part in the lives of entrepreneurs. Mastering the art of negotiation is essential for startup founders, who negotiate the terms of deals that can make or break the future of their companies. Startups are fragile and the founders need to make sure that they are getting the best possible deals in the given circumstances.
Negotiation is a skill that can be mastered and the best way to do so is through practice and observation. To be a great negotiator, one should polish a set of skills, the essentials of which include:
- Perfect verbal communication and intrapersonal skills;
- Effective listening;
- Analytical skills;
- Preparation and strategizing;
- Emotional Intelligence.
When negotiating, it is important to understand that people react differently when there is a value on the line. Your charismatic personality and ability to read people may help you a close couple of deals but won’t take you far in the long run. This is why great negotiators also focus on perfecting their offers.
To perfect an offer you need to make sure that it is presented in the best way possible. The terms need to be very clear, especially the financial part. People want straightforward information when it comes to money.
Emphasize on the additional benefits that come with the terms you offer. Make sure to highlight all benefits that go beyond the financial part. Focus on finding win-win situations.
Know your strengths and your weaknesses, so you can be more prepared. Know the strengths and the weaknesses of the other party as well. But when it comes to making the perfect deal, focus on using your strengths to your advantage, not the weaknesses of the other side.
To make the perfect business deal, it is important to know as much as possible about what is happening in the mind of a person when negotiation. So, when a behavioral economist who studies the psychological and neural bases of choice and strategic decision-making like Colin Camerer talks about what is going on inside the human brain during a negotiation, we should definitely listen.
During his TED Talk “When you are making a deal, what’s going on in your brain?”, he talks about the strategizing brain using various tools and data-backed examples to present his examples in the most comprehensive way possible. Have a look and don’t hesitate to share your opinion in the comment section below!