Published On: Tue, Jul 30th, 2019

Focusing on Negotiations: A New Business Plan Technique

In business, negotiation is essential in order to get ahead. It’s part and parcel of everyday business dealings as a result of the competitiveness you deal with daily.

Negotiation is now one of the most highly valued skills in business, as it essentially gives you the opportunity to get what you want, when you want. If the members of your company are unable to negotiate effectively, your business could suffer a severe lack of profitability and potential losses. Studies have shown that a business could increase their profitability by 7% each year if they had better negotiation skills.

photo/ OpenClipart-Vectors

Here are some of the main reasons why you need to be able to negotiate in business.

1. Analyzing a problem

In the business world, disagreements do arise quite frequently. A good negotiator will be able to see both sides of each party and help determine the best solution. If you’re unable to negotiate, it could lead to further disputes or unresolved issues and leave your business in a grave situation.

Negotiation also helps build relationships between two parties when agreements are made. It’s not an uncommon occurrence for disputes to arise after an agreement has been signed, so being able to calm down situations with the skill of negotiation can often work in your favor.

2. Increasing your bottom line

The goal of negotiation is to get the best possible deal for your organization where finances are concerned, and in doing so, you’re ultimately increasing your bottom line. For example, if you’re able to decrease your overhead by 10% through negotiation, this extra cash can be added to your profits. You’ll also have the confidence to bargain with suppliers for materials and products in order to enhance your revenue.

Those who are inexperienced in negotiation may find it difficult to manage business finances, which is why it’s important to consider enrolling employees onto a Karrass training program, so they have the confidence to get the very best deals and increase your business turnover.

3. You earn respect

In order to succeed in business, you need to be well-respected. It’s important your employees think highly of you to get the most productivity out of them, and customers should deem you a respectable business owner to have the intention of purchasing from you again.

When you negotiate with clients, you’ll be leaving the strong impression that you’re an influential figure, which can go on to impact your results in future negotiations. Don’t be afraid to come across as intimidating – it’s better to be stern than be walked over. Business is a hard slog, and if you’re not considered a power in such a competitive industry, you won’t get the results you want.

4. Securing the best employees

When it comes to the hiring process, you need to get the right person for the job. To secure the best talent, negotiation may be needed during interviews. It’s likely you’ll need to negotiate salaries, sick days, working hours, and extra benefits. Defining these expectations early on will boost employee productivity as they will have already had their say on what they’re happy with and how they would like to work.

Author: Carol Trehearn

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