The Reluctant Entrepreneur: Turning Dreams into Profits

EFFECTIVE LEADERS KNOW HOW TO NEGOTIATE

Most of the deals you make are likely to require little or no actual negotiating. You know what you want out of the arrangement. You find out what the others want by asking. You think about how everyone can have what he wants. And you come up with an arrangement that appeals to everyone.

Getting to that point, of course, often requires a good deal of thought and study on your part. You have to know the issues inside and out. But once you have something that works for both sides, you have the basis for a good and sustain­able deal.

NINE SIMPLE STEPS TO NEGOTIATION SUCCESS

1. Learn as much as possible about the other party.You need to get a feel for who you’ll be dealing with. You also need to find some common ground—the deeper issues that both sides can agree on.

2. Set your bottom-line goal.Ask yourself, if you had to walk away from the negotiation with only one thing, what would it be? Make sure this goal is realistic and attainable.

3. Search for value-creating differences.What’s unique about your position? What’s unique about the other side’s position? How can you use these differences to your advantage and make your position more valuable to both of you?

4. Face your worst-case scenario.The worst possible outcome of a negotiation is that you won’t reach any agreement at all. If you consider that possibility beforehand—and come up with your best alternative—you won’t get trapped into a compromise that really doesn’t work for you. ...