In business, the art of negotiation is critical to your success. Poorly negotiating a a contract can drastically impact a company that it may never be able to recover from. Most strategies seem like common sense, but it's not uncommon for emotions to take over and cancel out basic instincts.
According to Entrepreneur.com, being prepared for a negotiation is key. Doing homework on the competition opens opportunities to capitalize on the other party's history and weaknesses. If possible, talk to associates who have dealt with them before. Since many experienced negotiators develop certain styles, this can be used as an advantage.
Going in with a strategy is a basic principle to every negotiation, says Entrepreneur.com. Buyers should never reveal their budget or limitations. Be aggressive with offers since the first offer is usually a benchmark for what all subsequent offers are compared to. Look at body movement, patterns in speech and reactions when you make the initial offer, as these signs can give away a lot of information.
"Understanding the other side's priorities is just as important as understanding your own," Entrepreneur.com states.
Take advantage of your strengths. If economic conditions have made you or your product a valuable asset, take advantage of this, advises Entrepreneur.com. Establishing a strong foundation of knowledge and know-how right from the start will make a big impact.