Business Beat: Negotiation Skills You'll Need to Close the Deal

In business, the negotiation game is often won or lost before you take the playing field. If you're new to negotiating side of business, take a few tips from the business veterans to put you ahead of your negotiating opponent.

"Research your target thoroughly and understand their motivations, and anticipate their positions," says Kerry Gleason, president, Gleason Public Relations of Denver. He adds, "Know what you want to get, and be prepared to walk away."

The general manager for a major entertainment venue in Baltimore agrees with Gleason's observations and adds, "I think the most important thing in a negotiation is to not worry about what you want but identify what the person sitting across from you wants."

Here are some tips to help you take advantage of the negotiating prowess of other successful business people:

Research Your Target. Before you sit down, get the lowdown the other guy. Go to the company Web site, check the Internet to get general business information.

Go the Extra Mile When Doing Your Research. Don't just look at the general business behind the person you are negotiating with. If you belong to local networking groups, reach out to anyone who may have had dealings with the other person to find out his negotiating style. You'll want to find out if you need to hold out on a few key points to make the other person think you are giving in on some things. Find out if the person is a bottom-line kind of person; that is, a person who is very straightforward in telling you what s/he wants.

What Does the Person Want/Need? What are his motivations in the deal? Is the person is ambitious or regarded as a heavy hitter in the field? If so, he may not be motivated to give in on big items even if they are of little long-term importance to him. He won't want to get the reputation of being soft and easy to get things out of.
The person's motivation may not be about anything concrete, such as a good or service he thinks is vital to the deal. It may be more of a scorekeeping thing. For example, if you know about recent negotiations the person was involved with, check out the results. Did the person get what he wanted? What he did or didn't get from the last few deals may color how he negotiates with you.

Be a Mind Reader or Play One in Negotiations. While you are doing your research think like a politician and anticipate what the person might do in different scenarios. Play those scenarios through: If he says "x", then I say "y." You certainly can't anticipate everything, but you eliminate some uncertainty if you play through the various scenarios.

Know Forces that Fall into the Category of "Beyond My Control." Are there things you and the other party have no control over that can change the outcome of the negotiation or would change your needs in the negotiation? With that in mind, run those mind-reading scenarios through given the various options.

Know People Ask for More than They Want. In a negotiation, it's almost expected, so don't be overwhelmed for items that seem unreasonable. The person may be throwing a lot of extras in the game to be sure he gets the few key points he wants. To that end, do some reverse engineering and build in some items you are prepared to let go of without a fight so as to let the other person win a few.

Don't Keep Your Emotions in Check. Most people think they have to do the poker face during a negotiation so as to not show all the cards. On the surface, that sounds like a good tactic. Poker players avoid tells to keep the advantage over their opponent. Well, the opposite is just as true. A show of emotion at key points, especially wherein money is concerned serves a purpose, too. Even if the person knows that such tactics will be used, human nature dictates that if someone has distress in his voice, we will feel a bit uncomfortable. That bit of distress or unease will give you a negotiating advantage.

What's Your Bottom Line? It may seem obvious to say you should know what you want when you start the negotiation. You may know what you want in the broad sense, but you need to know what you are prepared to walk away with---and without. What is the bare minimum you are willing to take to reach an agreement? What points are absolute untouchable points for you? Think all of these through to come up with your bottom line. Are there points you cannot budge on under any circumstances?

The negotiating that goes on at the proverbial bargaining table can become incredibly one sided if one party has done his homework and the other has not. Use these tips to ensure you (and the other guy) walk away from the negotiating table victorious. Always strive for win/win as the ultimate goal.