Why do entrepreneurs need negotiations skills? Running a business calls for a lot of determination, and along with that determination an entrepreneur should master the art of bargaining to close solid deals and build connections. As a starting business owner you can learn a lot from other people’s experiences. Along the way you’ll make lots of mistakes, which is why it’s paramount that you learn from them.
Negotiation is a skill that demands years of practice. It doesn’t just pop up; never assume that other successful entrepreneurs were born with great negotiation skills because they weren’t. To win good deals and help your business thrive, every entrepreneur should be eager to learn.
Solid negotiations skills help build connections
Winning negotiations is easier said than done. Entrepreneurs who were not able to close a good deal, they should still be able to use their negotiation skills to build a connection. Just because you couldn’t reach common ground with your business partner doesn’t mean the meeting is over. Keep things professional, exchange phone numbers, and try to leave room for future collaborations. It didn’t work now because it was not the right time; it can work in the future. Sell yourself and your company, and you’ll have a lot to win down the road.
Practice makes perfect
They say in business practice makes perfect. For an entrepreneur to become an expert negotiator he must practice every single day. It’s not just about closing a deal for the sake of winning more money. Believe it or not, there are things you’ll want to have that have nothing to do with cash. To get what you want, you must practice with the risk of failing. The life of a passionate entrepreneur can be extremely agitated, especially in the first couple of years. You may be an owner, but you have to do the impossible to make other believe you and your business.
Put “the flinch” to good use
The flinch is every negotiator’s best weapon in business. It’s a visible tic that allows your opponent to see your reaction to their offer. Usually, the reaction we’re talking about is unfavorable and it can be used a strategy to get what you want. A “bad flinch” warns a counterpart that you’re not satisfied with the current deal. Whether you squint your eyes, look surprised or you give your partner the evil look, try not to exaggerate as it might backfire. The last thing you want is an opponent to leave the negotiation table because you’re unpleased.
Entrepreneurship depends on negotiation
Entrepreneurship and negotiation work hand in hand. As a business owner you’ll have to deal with investors, customers, employees, accountants, lawyers, on a daily basis. With all of them you have to bargain – whether you’re bargaining with employees for salary compensations or with investors for company equity, one thing’s for sure: negotiations are vital. You can’t excel in business without this fundamental skill.
Negotiations help entrepreneurs become better business people
Negotiations have the power to shape the timid personality of a rookie entrepreneur. There’s no room for shyness in business, and to succeed you’ll have to get over all your fears and just ask for what you want and deserve. It’s important to be strategic – never showcase your real self in front of your negotiators. Maintain a professional attitude, analyze behavior, talk less if you’re nervous, and don’t underestimate opponents.
Strong negotiation techniques go beyond just closing a good deal. Proper strategies can help entrepreneurs build connections and thus help their companies thrive. Recognition is a lot more important than money; you may feel tempted to accept an offer because it’s better from a financial point of view, but if you analyze the matter a little bit better, you may just realize that the other offer pending can be a lot more advantageous because it offers exposure.
Are negotiation skills really that important for entrepreneurs? Yes they are; you can’t be a role model for your employees if you’re not a thorough negotiator. As a company owner you’re not just bargaining for yourself, you’re also bargaining for your people. Be a good leader and treat every deal with respect as you can never know when you’ll meet with that negotiator again in the future.