Whether your small business sells directly to customers or not, being an entrepreneur requires you to negotiate. One of the things that business owners frequently tell us is that they want to improve their negotiation strategies and skills. Accordingly, the following are the essential characteristics of a skilled negotiator.
Do a lot of research
This probably won’t come as a surprise, but preparation is essential for a successful negotiation. You should understand the investor’s professional background and motivations before you enter the meeting room or start that Zoom call. You’ll be able to understand what motivates them and use this information to present your company in the best light possible.
You should be aware of your investors’ capital requirements and driving force. You run the risk of making an offer that is way out of their price range if you haven’t investigated their financial history and previous partnerships. This will not only make securing a deal more difficult, but it may also be insulting to the investor. You can clicca qui the source to discover the following questions if you are unsure where to begin:
- How do their prior deals appear?
- How much do they spend?
- What keeps them going?
- What has drawn them to your business?
- What might they have in mind for your business in the future?
Keep communication clear
Clear communication is the most effective way to stall a negotiation. Inadequate communication can easily result in unfortunate misunderstandings, even if both parties have a good rapport. Therefore, it is essential to communicate clearly, regardless of whether you are meeting the investor in person or virtually, to prevent wires from crossing.
By outlining your objectives right away, you can accomplish this in one way. The investor can be aware of what you want to accomplish early in the meeting, and any lingering doubts can be cleared up. This also tends to encourage the opposing party to be more specific about their goals, which is a great way to ensure that you are both on the same page. Active listening is another way to keep communication lines open. In contrast to passive listening, active listening requires you to concentrate on the investor’s words. You can develop trust, understand their needs better, and reduce tension by giving them your full attention and refocusing their thoughts.
Continue by asking a lot of questions
Negotiating is more than just making a business pitch. It’s also about creating a channel through which useful information can flow back and forth. With this in mind, you can increase your chances of getting a deal by being assertive and asking thoughtful questions to the investor. Not only do questions help you understand more and answer any questions you might have, but they also make you appear better.
You won’t come across as overconfident if you show curiosity and acknowledge that you don’t know everything. This can actually help you appear more competent to the investor rather than making you appear clueless. Additionally, this is a simple way to differentiate yourself from your rivals because most negotiators don’t ask enough questions. If you don’t know what to ask, you could start by asking about their funding limits, how willing they are to compromise, whether they have any feedback on your proposal, or if they think you should know anything else.