Negotiations are a key skill every small business owner should master which is why we created this negotiations primer.
As a business owner, you will be forced to negotiate with suppliers, employees, and customers. Being a good negotiator, either to get the most amount of money for a product or service from the customer or the most value for products or service you buy from a vendor, requires some basic knowledge of business negotiations. Here are some basic concepts that every business owner needs to know when trying to negotiate the best deals possible.
We have created a negotiations primer with a series of posts that will teach the small business owner the basics of small business negotiations.
As a business owner you will be forced to negotiate with suppliers, employees, and customers. There is some basic business negotiation knowledge every entrepreneur needs to understand to negotiate the best deals possible.
In business, we are always negotiating with suppliers, vendors, customers, and employees. The “I FORESAW IT” mnemonic is a powerful tool created by Seth Freeman that sums up what a negotiator should follow to systematically prepare for any important negotiation. Each letter reminds you of questions you want to ask yourself and then answer as part of your preparation for a negotiation.
Distributive negotiation is the process of dividing up the value of a fixed pie or options during negotiations and is based upon the idea that one party’s gain means the other party’s loss.
Integrative negotiation is a strategy in which both parties collaborate to find a “win-win” solution by developing mutually beneficial agreements based on each party’s interests.
