NEGOTIATION AS A BUSINESS TOOL Negotiation in business is a necessary tool needed to reach a compromise between two or more parties. These could be due to a dispute, bargaining for better terms or for better understanding. Negotiation is not limited to businesses alone or used formally, as it also has a wide range of applications taking different dimensions in our day to day interactions. Getting the upper hand in a negotiation is not wholly dependent on the ability to bargain or make others see your perspective. Negotiation is a skill which starts with preparation. Knowledge is said to be power and the truth of the statement is seen in negotiation. Knowing what the party you are in negotiation with want and who they are on an individual level will give you an advantage, as you can play their strengths and weaknesses to your gain. With each personality a different approach might be necessary. A well informed and knowledgeable person is best negotiated with a calm and patient person. This plays to the other parties’ ego and gives them the impression they have the upper hand in the negotiation. It is very important that the negotiator is best suited for the negotiation depending on the party. In a negotiation listen to what the negotiating party ha to say and know what they want before they sit down on the negotiating table. It is better to listen than to say a lot, because you might expose areas you are vulnerable in and the negotiating party will play that to their advantage. A good negotiator has to be patient, a good listener and have self control. Preparing for a face to face negotiation entails more than just knowledge of the negotiating parties wants. Communication is achieved through different means one of which is the body language. You have to be in the right frame of mind to cope with the psychological effects of negotiation. Loosing confidence or getting distracted will give room for the negotiating party to gain the upper hand. You shouldn’t be intimidated by the negotiating party, and always remember the value of what you are offering. You should go with a mind set that says I am doing you a favor.
A negotiation is aimed at arriving at a mutual agreement were both sides make compromises. A good negotiation is not one sided in that it is not about what you can do for the negotiating party but about how what you do stands to benefit the negotiating party. During negotiation, find time to go on breaks and re-strategize. Discuss with team members on the best approach suited for the negotiation process as new developments occur. Remember that negotiation is all about compromise. When you go to the negotiation table, you should have three probable outcomes from the negotiation process. The first being your opening bid, the second you targeted price and the last your acceptable price or deal breaker. While some aggression is necessary in negotiation, one must also be realistic. In order to enjoy an amicable relationship with the negotiating party, both parties should reach an acceptable compromise. If the other party feels it was taking advantage of, further negotiations and business deals might not hold , and the chance of having a long term business agreement built on trust and mutual understanding truncated.