18 Must-Have Negotiation Skills For Procurement Professionals
How To Negotiate With A Business Partner
If you own a business, you’d know how hard it is to handle everything. You have to find the capital, manage employees, and keep track of profits. This is one good reason to get a deal with a business partner.
Unfortunately, negotiating can be tricky, particularly if it’s your first time doing it. As a guide, below is a list of tips you can use in establishing business partnerships.
1. Start with a written agreement
It doesn’t matter if your business is small or big. Regardless of size, you should have a well-drafted business partnership agreement or contract. This can help you manage potential problems in the future such as legal and financial disputes.
Before you can draft one, it’s a good idea to start by deciding your mutual goals. For your business to succeed, you need to consider not just your personal interest but the interest of your partners as well. You shouldn’t forget about the interest of your business either.
Think about business growth and know your goals for your business. Discuss how you will use the capital and manage any debts concerning the business. This is also a good time to assess your goals for profit sharing and your plans for setting up a secure payment method. This is essential if your business involves selling products or providing services to customers or clients.
2. Know your deal breakers
Before stepping into any negotiation, try to list down all your deal breakers. You can consider these your ‘must-haves’ list or the things you won’t settle for any less. It may include having your own office, negotiating your salary, or taking full control of a certain aspect of your business.
3. Get a better understandingof ownership
This can cause a handful of conflicts later on.
To avoid that, it’s best to take inventory of what you own before you start the negotiations. Take note that your list shouldn’t just include tangible and physical properties; it should include intellectual properties too.
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4. Be honestabout what you can and can’t do
It can be quite tempting to lay all your strengths on the table. After all, when you’re negotiating, you want your potential business partner to agree to all of your terms.
5. Understand who you are dealing with
Avoid focusing on the company. Instead, pay more attention to the human beings you’re negotiating with.
It’s normal to feel intimidated when you’re negotiating with big people in the industry. However, if you focus on highlighting how a partnership can add value to them, you’ll be able to set your best foot forward.
6. Know your worth
As much as possible, avoid underselling yourself. It’s important that you know your worth and your value to your potential business partner.
At the same time, you should aim for equality. Remember, you’re trying to establish a partnership. You also have to value what the other party can do
7. Don’t forget to listen
Don’t just focus on what you can offer to the point that you’re neglecting what the other party has to say. A partnership requires the effort of two or more people to succeed.
A business won’t thrive with just the input of one person. If you won’t be able to enter a negotiation with a listening mindset, you’re less likely to accept suggestions and comments down the road. This can create conflicts and misunderstandings in the long run. You may even find it hard to accept feedback from customers and clients.
With that, consider listening to what each of your can give or throw away to meet at a common point.
In Conclusion
Negotiation is part of any business endeavor. It’s especially important when you’re just planning and putting together the parts of your business.
While negotiating with a potential business partner can be tricky and challenging, there are steps you can take to make sure the process ends up successfully. Learn to listen and treat others as human beings that can provide value to you and your business. Don’t deny suggestions and comments just because they contradict what you believe in.
Remember, it’s a partnership. It’s supposed to involve the efforts and actions of two or more people.
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