In this article, we will look at preparing for and conducting negotiations with partners, investors and clients, taking into account the different tactics of behavior applicable in each situation. However, there are several constant aspects that should always be taken into account: impeccable appearance, politeness and professionalism.
Preparing for negotiations
Initial preparation for negotiations involves defining the goal you want to achieve, whether it is closing a deal, a new contract, raising funds, or a partnership agreement. It is important to stick to this goal throughout the negotiation process, although there may be some concessions.
It is also recommended to prepare several options for the development of negotiations, taking into account the possible lines of behavior of the interlocutor, who also has his own goal. Preliminary rehearsal will help you to be prepared for various scenarios and avoid unforeseen situations.
One of the important aspects is your appearance. The more important the negotiations, the more impeccable your image should be. For men, a business suit or classic jeans with a shirt is recommended, while for women it is advisable to choose moderate and discreet makeup, avoiding excessive accents. It is also necessary to pay attention to shoes and hands so that they look well-groomed.
Don't forget to bring the necessary attributes: a diary and a pen for notes, business cards and brochures to introduce the company, a presentation on a laptop to demonstrate your ideas, a bottle of water to quench your thirst, and contract forms just in case. However, it is necessary to turn off your mobile phone to avoid distractions.
Additional tip: If possible, try to arrange a meeting on your territory, for example, at the office of your online store, as this will help you feel more confident. In case the interlocutor insists on neutral territory, for example, in a cafe, choose a place that is familiar to you. If you have to negotiate on someone else's territory, be prepared for this and prepare more thoroughly.
Mastery of words is the key skill of our era
The key skill of the era, as can be seen from philosophical reflections and historical examples, is the mastery of words. Words play an incredibly important role in our lives. They not only serve as a means of communication, but also have multifunctionality. With the help of words, we express our thoughts, learn, manage, argue, heal, and even conclude deals. The modern world is based on the ability to use words effectively, especially in negotiations and business deals. Thus, the ability to master words is an integral and key skill in the modern era.
The key skills of the era change according to the needs and development of society. In primitive times, an important skill was to provide oneself with food, then to be able to defend oneself and one’s interests with weapons. However, with the advent of money as a medium of exchange, management and use of words became key skills. Today, the world is built on communication and interaction, and the ability to communicate effectively with words has become critical.
Thus, our era is defined by a key skill – the ability to master words. This skill is the basis for successful interaction, achieving goals and solving problems in the modern world.
Scenarios
It is also necessary to realize that our activities are full of scenarios. They can be divided into two categories: success scenarios and failure scenarios. A success scenario could be, for example, a successful completion of a deal, and a failure scenario could be a client refusing to cooperate. If one scenario does not work, you can resort to an alternative option. It is important to start with more complex scenarios and move on to simpler ones that are guaranteed to work if a complex one fails to be implemented. Naturally, this requires thinking through several scenarios, since they are always changing.
To reduce the number of mistakes, you should never do the first idea that comes to mind. The first reaction most often leads to an unsuccessful scenario. Even taking into account statistics, the probability of making a mistake with the initial actions is higher. In business, there is no place for emotions, only cold calculation prevails here. Many may object, relying on their experience and beliefs, but believe me, this is a serious mistake. Experience is a temporary phenomenon, and what worked flawlessly yesterday may not be applicable today. All situations are unique, and it is always necessary to understand each of them. However, if you are lazy and it is easier to stick to the same actions, automating them, then this is your choice, but this approach will not make you an expert in concluding deals.
Negotiations with partners
Your partner could be a new supplier, an entrepreneur from a related industry, or an interested party with whom you have decided to start a new project.
Mutual cooperation plays a key role – both partners strive for mutually beneficial cooperation. This means that neither party is obligated to anything to the other, and both parties are on equal terms. Compliance with the basic rules is essential.
The following principles form the basis of successful negotiations:
- Speak clearly and distinctly, avoid ambiguity. No one wants a potential partner to speak in riddles or unclear phrases. Follow this principle in written agreements. Although you can include asterisks and fine print in the contract, do not forget that reputation plays a big role in business.
- Be honest. Tell the truth about your online store, outline its advantages and disadvantages, share your plans for the future. Tell everything except the bank account.
- Clarify. Sometimes the other person may express themselves unclearly or go off topic. Don't be shy about asking again and clarifying to fully understand each other.
- Be polite. Regardless of the social status of your potential partner, behave respectfully. In business, everything can change, so remember the proverb “don’t spit in the well – you’ll need to drink the water.”
- Don't always try to gain an advantage. Some people advise being pushy and insisting on favorable terms, but this will only create a reputation as a rude and unpleasant partner. Word can spread quickly in business, and you may find yourself isolated.
- Be careful when working with friends. Experienced entrepreneurs advise to be especially careful when collaborating with friends and acquaintances. It is not always easy to refuse, and the resulting situation can be unpredictable. Trust, but verify.
- Take notes. Write down the most important points of the negotiations. They can be useful for later review and clarification of details.
Advice: Don't despair if you can't find a reliable partner the first time. Each person has their own vision of the situation and their own methods of doing business. It is important to find a person with whom you agree - such partners are usually the most successful.
Negotiations with investors
In this situation, your dependence on an investor and their funding presents a completely different context. We have already covered the issue of how to effectively attract an investor for an online store. Now you need to understand how to properly negotiate and present yourself:
Avoid self-praise. Investors are serious and experienced people, they constantly negotiate and can easily recognize falsehood. They have repeatedly heard speeches about the “best startup”, that “soon we will definitely get going” and “conquer the market”. At best, such statements cause a smirk, and at worst, they lead to a refusal to cooperate. You need to sincerely interest a potential investor in order to get the desired funding for the development of your business.
Avoid bluffing. If you don’t have the initial capital, like-minded people, partners, and other investors, say so openly. Your strength may lie in other aspects. Keep in mind that all your words will be checked, and no investor will invest money without thoroughly studying you and your company.
Provide specific facts. It is necessary to provide specific data, not promises of “millions in turnover in the future.” Specify how you plan to achieve a certain turnover in a year: provide calculations and a business plan. Do not talk about “the best suppliers,” but provide a list of your suppliers along with contracts, obligations and guarantees. Do not claim to “work all over Russia,” but indicate specific cities to which you deliver. Try to provide specific details and facts.
Emphasize the advantages of your business. No need to complain about difficulties, lower tax climate and the superiority of competitors. Investors are well aware of how difficult it is to run a small business in our country. Focus on the positive aspects: tell how exactly your store differs from others and what you do to operate successfully.
Don't criticize your competitors. You may think that "Horns and Hooves" is your direct competitor, but for an investor it is just another company (and possibly a potential partner). If you are confident that you can knock a competitor out of the market, talk about it, providing evidence. If you have competitive advantages, point them out. Businessmen are focused on numbers, not emotions. Or, best of all, establish friendly relations with competitors, conduct joint marketing campaigns and share this with the investor.
Avoid groveling. Don't try to be servile from the very beginning of negotiations and agree with everything the investor says. Even if your interlocutor is much more experienced, behave with dignity. Show yourself as a real entrepreneur: answer unpleasant questions honestly, demonstrate your competence and knowledge of the market, and remain loyal to competitors.
Advice: Being sincere and telling the truth is much better than exaggerating your achievements and showing an inordinate sense of self-importance. The investor may think that he is dealing with an overconfident and inexperienced person and will refuse to finance you.
Negotiations with clients
A client has approached you interested in purchasing a large batch of goods, possibly at a wholesale price. Cooperation with him can bring you significant benefits, so it is necessary to hold a meeting and discuss all the details. It is important to understand that your position in these negotiations has its own dependence: if the client is large and promising, you should not miss such an opportunity. On the other hand, the client has approached you, which indicates his interest. Thus, an important game is ahead, and your success depends only on you!
You should be polite and adhere to business etiquette so that the customer sees that your online store offers excellent service and there is no reason to worry in the future. You are a modern and educated manager who is a pleasure to deal with.
Be honest in your statements. Do not lie or exaggerate your capabilities, super profits or VIP client list if you do not have one. Such claims can be difficult to verify, but if the deception is revealed, rumors will quickly spread in the business community.
Use bluff tactics with moderation. Even if you are excited about the opportunity to attract a profitable client, do not show your enthusiasm too openly. Do not tell the person that there is a line of people wanting to join your office, but let them know that they are the only one and important, and at the same time hint that your business is thriving and there are plenty of clients.
Study the client’s needs. Find out what goals they pursue and why they chose you for cooperation. This will help you better understand them and choose the right communication strategy.
Tell us about the principles of your online store and its corporate culture. For example, specify that you always process returns, even if the law does not require it, in order to satisfy the customer. Or you can mention branded packaging or gifts with the order. Provide complete information to avoid surprises during the cooperation process.
Tip: Value your big customers, as they can be the backbone of your e-commerce business. Run promotions, sales, and discounts to turn occasional customers into regulars. Don’t let your competitors steal them!
Conclusion
What to do after an agreement is reached? After negotiations are completed and an agreement is reached (if one has been reached), what should be done?
Don't rush to sign a contract and start new projects. Take a short break to think things over again. Trust your intuition, it will help you understand whether it is worth starting a business relationship with this partner. Find out more about him by contacting your contacts and getting recommendations. However, do not delay too long, as the partner's interest may cool, and he may change his mind. Two or three days is enough!
Write a letter to your interlocutor in which you thank him for the meeting, once again indicate the main agreements and express your desire to start cooperation. Include the figures that were mentioned during the negotiations (investment amounts, quantity of goods, etc.) - this will help clarify mutual understanding. If you do not receive a response, wait a day or two and remind him of yourself. If silence persists, it is better to retreat than to persistently impose yourself. Sometimes such situations arise, and your interlocutor may simply change his mind.
When you start a partnership, it is important to keep your commitments. You have written down all the details, so refer to them periodically and do not deviate from the set course. Keep to the agreements to avoid rumors in the business environment and maintain trust.
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