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Top Negotiation Skills in Business

Daisy Neema
Daisy Neema

Negotiation skills helps the stakeholders reach a conclusion and make an informed judgement. Negotiating business deals is crucial for the success of any businesses. Parties with different interests discuss an issue to reach a mutual understanding. Businesses lose profitable deals because they feel intimidated.

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The following are negotiation skills that every negotiator should have.

Prepare Effectively Before a Meeting

Proper preparation is the cornerstone of every successful negotiation meeting. When you have the desired results in mind, make a list of you willing to compromise. Dig deeper to see if you can have similar needs with your counterpart.

Problem Analysis

Problem analysis is a negotiation skill that will help the negotiator identify the interests and goals of parties involved. Identifying what both parties want will help find a win-win solution.

Honesty

Building trust with your counterpart is essential in a negotiation. It reduces instances of deception that leads to aggressive bargaining. You can build trust with your opponent through sharing information. You can honestly tell them what you need in that negotiation.  Consequently, it will build mutual understanding and trustworthiness.

Communication Skills

Clear and effective communication involves the choice of words, how you say them, and how to use them together with other non-verbal communication. Your voice and pace speak volumes to your audience. To be understood better, you must know how to express yourself.

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Ability to Build Motivation

Seek to find out why your counterpart wants to make a deal with you. The only way to find out is to ask questions. Ask questions that they are confident to answer regarding what they are willing to offer. Doing so will give them the confidence that you are interested in what they are offering.

Time Conscious in Business Communication

A good negotiator will not only emphasize what to say or how to say it but also be keen on turn-taking. This skill can save both parties the trouble of having to negotiate for long hours without agreeing. Take charge of the conversation. This way, you are sure to get the perfect timing to close a deal successfully.

Listening Skills

Listening is a critical negotiation skill. Since you know what you want in the end, you should listen keenly to the needs of the other party. Negotiation is not entirely about verbal communication, but also body language. It will help you to determine whether you can meet the business' objectives. 

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Ability to Play the Reluctant Party

Negotiations usually have two parties; the eager and reluctant party. To get the upper hand, be the reluctant party by allowing your body language to do this for you.

  • Speak slowly and softly. Eager parties will speak loudly, and at a higher pitch.
  • Sit back from the table. Sitting back is a sign that you are not eager to make a deal.
  • Don't show excitement to the other party.

Here's the trick; when you are reluctant, your counterpart may be forced to take on the eager part because this deal is too important for him to lose. However, do not overdo this part since not all opponents are patient enough. 

Problem Solving Skills

An excellent negotiator must have multiple solutions to a problem. For successful negotiations, you should not focus on what you want to gain. Provide solutions that will give the other party satisfaction.

Assertiveness

Assertiveness is a useful negotiation skill where one expresses his desires appropriately. An assertive person respects the thoughts, beliefs, and feelings of other people. The negotiation will likely to become heated, and you will need to keep your emotions in check.

Teamwork

Teamwork is effective in business negotiations. Team members should have similar interests to achieve the same goal. When team members disagree during negotiation, the other party can use it to their advantage.

Ability to Maintain Good Relationships

A good negotiator expresses his thoughts politely. He respects the other party's thoughts and feelings during the negotiation. It helps to create a good relationship and maintain a bearable atmosphere between parties involved. Eventually, even if the parties don't reach an agreement, they can carry out future business deals with each other.

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Importance of Negotiation Skills in Business

Effective negotiation skills are critical in business. Failure to negotiate wisely leads to substantial losses. Advantages of excellent negotiation skills in business include: 

  • Increase in profitability
  • Builds respect
  • Improves the desired results
  • Satisfaction for parties involved

Conclusion

Effective negotiation skills are essential for a business to flourish. You can learn these skills and keep improving them. This way, you are likely to land on more business deals, which you can negotiate effectively.