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Negotiation remains a critical part of operations

8/30/2011

For small business owners, negotiation is a constant, regardless of what the situation may be. Whether it is creating a software development contract or simply negotiating with an employee over benefits, it plays a significant part of the company. StartupSmart columnist Jo Burston says there are a few important things to keep in mind.

The first step to negotiations, Burston says, it to keep the deal from falling apart as the process drags along. With an extremely long discussion process, both parties will lose interest in the situation and be thinking about "the next big deal."

It's also important to go into initial negotiations knowing what the ideal end result should be. Each business owner should know their bottom line and operating costs so they can discuss them with potential clients and vendors.

Burston adds that small business owners should be sure they are actually negotiating with someone who has the authority to make decisions. If small business owners aren't talking to the right people, then the deal they agree to may not even matter in the end.