10 tips before, during and after you negotiate

Negotiation is a muscle that you build. From lease agreements to price discussions, as a small business owner you will negotiate with and on behalf of customers, and for yourself (and even with yourself) on a daily basis. That’s why training this muscle is so critical.

Geoff Powell and Edwina Swan are Senior Negotiation Consultants at ENS International. They explain that "whenever you try to influence another person, that’s a negotiation. Fundamentally that’s taking place in almost every conversation we have."

So, what can you do to build your negotiation muscle power before, during and after you enter one?

Before a negotiation

1. Preparation is "important, important, important"

According to John Schroder, National Partnership Manager at QBE, preparation means you should "gather information, find out exactly what the customer needs, what industry they play in, what they’re looking for in a partner, validate that information and then prepare a solution."

Powell agrees and explains the key is this discovery process "An example is the doctor. When you go to the doctor, you don’t walk in and the doctor says, ‘hey how are you I’ll write you a script’. They ask, ‘what’s going on? What are the symptoms?’"

2. Know what you want to achieve

Equally, you have to know what you want to achieve out of that negotiation. "You definitely need to understand the outcome that you would prefer to reach," says Swan.

Whether the outcome you want is for that specific moment, or you have a longer strategic goal that might be achieved over a number of meetings, "It’s important not to lose sight of that during interactions," Swan added.

3. Have a plan in place

Distractions can get us off course. That’s why for every interaction, it’s a good idea to plan what you want to say and how you want to say it. According to Swan, questions you can ask yourself include "What are the other person’s needs? What are your needs? And what is the common ground?"

It’s important to remember that there is no standard approach. Rather, it’s about knowing what kind of negotiator you are and adjusting your plan depending on the situation. "That’s the key," says Powell. "Knowing whether you’re a naturally competitive person or naturally cooperative person."

"For example (during a recent negotiation) I sat beside the person, so I wasn’t across the table, I spoke quietly but quite firmly. I had planned all of that before the session. It was about creating an atmosphere."

4. Understand the limits of the conversation

Before you enter the discussion, it’s also important to understand the point in which you will walk away. "Know the value of what you’re selling," says Schroder. "You’re selling your time, your skills and access to a market. If you know what your floor is and they’re not willing to partner with you for that price, that’s fine."

Equally, you have to know what your customer’s limits are. For Swan, it’s about getting that balance right. "I think it is important to note that negotiation across the board is not always giving away what you want or you walk away. It’s a great idea to understand what each person requires, what some of the value propositions are on both sides, and then water will find its level."

During a negotiation

5. Have a win-win mindset

At the end of the day, win-win is the ideal outcome, says Schroder. "Ultimately you want to foster a positive working relationship, so it’s a good idea to go into a negotiation with a positive mindset, be open to feedback, good or bad. Be open to suggestions. But then also be confident. You know what you have to deliver."

6. Ask open questions

When you’re in the middle of a negotiation, the importance of questions cannot be underestimated. And it’s open questions that can yield the best results. "When you go to the doctor and they ask, ‘how are you?’ you can’t say no," says Powell. "Open questions are designed to get people to actually talk."

But what does an open question entail? "There’s really only seven words you need to know to make a closed question into an open question: how, what, which, where, why, who and whose. If you can incorporate one of those seven words rather than make a statement, you’re going to engage people," Powell adds.

7. Be present in the situation

Importantly, during a negotiation the key is to keep cool, calm and collected. One way to do this is to notice body language. It can help you read the room and understand your customer’s reactions.

"Body language can be used or abused," Powell believes. "You can use your body language to help move towards the outcome you want with things like smiling and making eye contact. It’s important to know though, that these same body language movements might seem intimidating to some. The biggest skill is knowing how and when to use them. Often you’ll get the answers to your questions simply from body language."

After a negotiation

8. Know that trust is "managing expectations"

Your work doesn’t stop after the negotiation. In fact, that’s when it starts. Make sure you follow through on your promises and manage your customer’s expectations.

For Authorised Representatives in particular, Schroder explains that the day after you get your customer onboard, your negotiation is starting for the next cycle. "And your negotiation for the next cycle is based on what you do. Say what you do and then do what you say. Commit to your promises."

9. Continue the relationship no matter the outcome

Whether your negotiation was successful or not, Swan says that ultimately "it’s about continuing on because there’s a relationship there. If we deal with respect and interest, acknowledge what's been good, then that sustainable relationship will never go off the rails. It will allow you to continue on with that negotiation later or even be referred."

This means encouraging Authorised Representatives to go one step further. "You can actually use that lead and say ‘okay, I can’t service you but one of my peers can. Would you like me to do an introduction?’"says Schroder. "You can then pass that customer on to your network. It reflects well on your brand as someone who is willing to share within the community, and ideally that is reciprocated when an opportunity comes the other way."

10. Keep practicing your negotiation skills

There will rarely be a time when you’re not in the midst of a negotiation. That’s why it’s so important to not look at them as singular events, rather a life skill that requires continuous training and practice.

"These are mindset behaviours, physical behaviours and conceptual behaviours to help you find your way forward," says Swan. "When we’re under pressure we need to make sure we have a base to go back to. It’s all about creating progress."

If you would like to progress your negotiation skills, you’ll find more great content on ENS International’s website including virtual courses and coaching.