9 NEGOTIATING PRINCIPLES FOR INVESTMENT SUCCESS
WHAT ARE THE UNDERLYING PRINCIPLES THAT YOU SHOULD BE USING IN A NEGOTIATION?
It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors because these principles and techniques will always work–whichever side of the negotiating table you happen to be sat on.
Some of the following tactics take a little skill and practice to master, but for the most part, they’re all very straightforward points that anyone can follow, regardless of your personality or professional background. These nine crucial points build on insightful observations of human psychology and alert you to the little things that make all the difference.
1. EMPATHY IS CRUCIAL - EMOTIONS ARE HARMFUL
Be understanding of the other side’s position and do not let your emotions either derail your strategy or cause offence – remember that you’re dealing with another human being.
2. UNDER-PROMISE AND OVER-DELIVER
This is an easy way to both avoid overstretching yourself at the outset and to create a feeling of gratitude.
3. THE GENERAL COMMANDS FROM THE REAR
Remember that it’s more important to be behind the scenes – taking advantage of all the intelligence you can gather about the scenario – than it is to be on the frontline, exhibiting aggression without knowing the full picture. You can always use your consultants to test the waters, and they can agree on principle with the other part, but subject to your approval.
4. SOME INFORMATION MAY BE DISCLOSED LATER
If you are not comfortable, you can keep certain points back until negotiations have progressed a little further.
5. TAKE TIME TO ANSWER
Don’t feel pressured to respond, instead give yourself time to think through your options.
6. MAINTAIN PRESSURE, PACE AND (PERCEIVED) COMPETITION
When it comes to your end of the negotiations, however, there’s no harm in applying a slight pressure to your opposite number.
7. YOU HAVE THE DO-NOTHING ALTERNATIVE
Remember that it’s never a binary situation since there’s always the middle choice of doing nothing at all.
8. TRUST YOUR GUT
Our instincts are usually telling us that something is wrong, or right, at a subconscious level. This is not magical thinking and it’s not unscientific – instincts are worth paying attention to.
9. IN A GOOD NEGOTIATION EVERYBODY WINS
A balanced process leads to a satisfactory outcome for all involved and sets up further possibilities for the future.
So the next time you find yourself thrashing out those all-important heads of terms, be sure to bear these nine negotiation principles in mind.