Ways of building great mutual business negotiations

Davis Miller

April 10, 2014

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Fostering trust in a business negotiation is the simplest way of reaching mutual ground and building a relationship. It might seem difficult to believe, but not everyone wants the biggest share of the pie from a bargaining deal. Win-win solutions have their benefits too. Why are people settling for 50-50 bargains? Because they want to build relations, they want leave room for future collaborations; while some see win-win deals as weak deals, others see them as fruitful opportunities.

How do we build relationships in business? For starters, we have to help others succeed and appreciate their efforts. It's all about seeing and discovering an opponent, and about finding efficient ways to collaborate. Mutual business negotiations build relationships involuntarily. However, try not to focus only on the relation and stay focused on your goals, too. Have a professional attitude, speak naturally and meaningfully.

Be ready for a positive outcome

The best way of winning a negotiation is to be honest with yourself and with your counterparts. Know what you want from a deal and don't be afraid to speak your mind. A lot of people assume that the mere word "negotiation" has a negative undertone. Basically, these people strongly believe that negotiation is connected to persuasion. To some extent that's correct; however, let's not place negotiations in the same category with the sales domain. Nobody likes an annoying salesperson who's desperate to sell a completely useless product and who just doesn't want to give up even when you said you're not interested to buy.

Whether you're an investor, a CEO, or a seller, in business it's vital to know your company and your product. Reaching mutual agreements can have a lot of benefits in the long run, but to get there you have to prove to an opponent you're worthy of that deal. Win-win solutions mean that the goals and needs of both negotiators are being fulfilled equally. Simply put, there are no losers because everyone goes home a winner.

A good reputation leads to mutual business negotiations

You cannot make someone trust you and your company if you don't have a good reputation. Reliable companies can achieve win-win solutions a lot easier. They're known for their honesty and fairness, so others won't hesitate to settle on a deal that benefits both side equally. When an opponent senses that your negotiation measures are not ethical, they will refuse to compromise. As a matter of fact, in business the tinniest, most innocent lie will make a partner leave the negotiation table. Always keep in mind that it can take years to build a reputation, and only a couple of minutes to destroy everything you've built.

Good communication skills are paramount

Some negotiators are too chatty. They love to talk in the hopes of intimidating an opponent with their overly confident attitude. But guess what; if you listen carefully, you'll realize that what comes out of their mouths is complete nonsense. Don't confuse good communication skills with baloney statements that are meant to intimidate you. Keep it real, talk calmly and try to catch an opponent's interest. Appreciate their questions, their affirmations and have a conversation. The key to a good deal be to create a laidback ambiance and make everyone at the negotiation table feel relaxed.

Why are good communication skills so important in negotiations? First off, a negotiation is a process that revolves around a conversation between two or more individuals. It's a dialogue where people are free to express their thoughts and demands. Let's call negotiations an "exchange of views" where proposals and concessions are being made and explored. The final outcome is meant to please all parties; however, to reach mutual ground it's paramount to establish credibility by communicating accurately.

Inexperienced negotiators are not very good communicators and that's because they're terrible listeners. How can you have a conversation when you have no idea what your opponents wants? To achieve optimum results and build great mutual negotiations you have to create a social bond with opponents. Share interests, talk about non-negotiable terms, and try to meet somewhere in the middle. Compromise shouldn't be seen as a weakness; on the contrary, it should be seen as a smart way to build relationships and leave room for future collaborations.