On Negotiations

"In business, you don't get what you deserve, you get what you negotiate." - Chester L. Karrass

Negotiation is an art that every entrepreneur must master. Whether you're securing funding, closing deals with clients, or forming partnerships, your ability to negotiate effectively can make a lot of difference between success and failure.

In this article, I’ll delve into concrete strategies and principles that have helped hone my negotiation skills and navigate the complexities of deal-making with confidence:

Don't Over-Negotiate:

• Don't fall into the trap of negotiating too much. While it's important to strive for favourable terms, obsessing over incremental gains can hinder long-term relationships and opportunities.

• Focus on creating value for both parties involved, rather than solely maximizing your gains. A win-win outcome fosters trust and lays the foundation for future collaboration.

Cultivate Relationships, Respect & Rapport:

• The relationship you have with people is often more valuable than the contracts you sign. Invest time and effort in building genuine connections with your counterparts.

• Share common stories and experiences to create rapport and trust. Strive to make every interaction a positive and memorable experience for the other party and strive for moments where they say, "That's right." Empathy breeds cooperation and facilitates win-win outcomes.

• Effective negotiation is about understanding the needs of the other party. When the other party feels understood and valued, they are more likely to collaborate and reach a mutually beneficial agreement.

• Lastly, not every negotiation will end in victory, but every interaction should leave a positive impression. Focus on making people feel good about dealing with you, regardless of the outcome. Respect, integrity, and professionalism are invaluable assets in the business world.

"The most important trip you may take in life is meeting people halfway." - Henry Boyle

Project Authority and Approachability:

• Your body language speaks volumes in negotiation. Keep your body relaxed yet expansive, projecting confidence and openness. Assume authority in your movements and gestures, demonstrating leadership and conviction.

• Keep a slow and sombre vocal tone during negotiations. A slow and sombre tone, combined with an expanded chest and relaxed posture, conveys authority and confidence.

• Maintain eye contact, speak in complete sentences, and project a sense of calm and assurance.
  

The Power of ‘No’:

• People are often more inclined to say 'No' than 'Yes' in negotiations. To overcome this resistance, frame your questions in a counter-directional manner. By guiding your counterpart towards affirming statements like "Are you better off...?" or "Do you have more...?" you increase the likelihood of reaching a favourable agreement.

• "Negotiation is the art of letting them have your way." - Daniel Varela

Embrace Communal Problem Solving:

• Instead of approaching negotiations as a zero-sum game, embrace communal problem-solving. Present challenges as shared concerns and invite the other party to collaborate on finding solutions. Pose questions like “Can you help me……?”

• By framing negotiations as a joint effort to overcome obstacles, you can foster cooperation and goodwill, ultimately leading to more favourable outcomes for both sides. Make it a shared problem, rather than an ask

The Art of Listening:

• Negotiation is as much about listening as it is about speaking. Pay attention to cues and signals from the other party, and be prepared to adapt your approach accordingly. Flexibility and responsiveness are hallmarks of effective negotiation.

Practice, Continuous Learning and Growth:

• Negotiation is a skill that can always be refined and improved. Stay curious, seek feedback, and aim for consistent improvement. Learn from both successes and setbacks.

Mastering negotiation skills is non-negotiable. It is not just about securing favourable deals or tactics; it's about building lasting relationships, fostering collaboration, and driving the success of your startup.   

Always remember, negotiation is not about defeating your opponent - it's about winning them over.

Some helpful resources:

• FBI Negotiator Teaches Art Of Negotiation (Masterclass w/ Chris Voss)

• How to speak so that people want to listen | Julian Treasure | TED

• Margaret Neale: Negotiation: Getting What You Want