Buying a Business
Business negotiation is a key element of everyday life as an entrepreneur, business owner, manager, and anyone looking to buy or start a new business. Whether you are negotiating a raise, small business purchase, or rental agreement with a landlord, business negotiation is an important skill set to have handy. That being said, here are 5 ways to improve your prowess in business negotiation:
1. Don’t undermine your own offer. It can be difficult to wait for a reply on an offer, but it is best to hold tight until the other party comes back with a response. Jumping in with a lower counteroffer to your original offer will only reflect poorly on you as a business negotiator. Be confident in your offer and know that you may have to wait.
2. Don’t say ‘yes’ right away. Generally, the first offer or proposal in a business negotiation is not the best one. Desperation in a business negotiation does not drive success, so steer away from making sudden moves that may appear that way. Also, be prepared to say ‘no’ in a business negotiation. This can be a very powerful tool, but make sure you are prepared for the consequences.
3. Conduct business negotiations in a neutral location. Of course, everyone would like to have negotiations take place at their own offices or properties, but this is impossible. Rather than go through the rigmarole of making that decision with the other party, propose to meet in a neutral location right away. This helps facilitate an environment of equality, in addition to showing your thoughtfulness and maturity.
4. Always stay professional. This may seem like a no-brainer but, honestly, this is a common and costly mistake. Politeness and good business protocol will go a long way in your business negotiation, so be sure to maintain your professional demeanour. Attempting to bully or coerce the other party will only result in a bad deal, tarnished reputations, or destroyed relationships.
5. Truly aim for a beneficial outcome for all parties. Positive relationships are what make for business success and growth. When both parties come out pleased after a business negotiation, the environment is better for keeping relationships amenable and productive.
When buying or selling a business, one of the best business negotiation tools you have available to you is a business broker. We, at LJ Hooker Business Broking are your expert business brokers. We have the knowledge, expertise, and resources to make your sale or purchase a smooth, successful, and stress-free experience.