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How to Get Ready for a Negotiation Meeting

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February 25, 2022

Preparation is the key to successful negotiation. Regardless of how great your proposal is, if you enter the negotiation room without doing your research — unquestionably defining the goods and services to be provided and ironing out your negotiation strategy — you're putting yourself at risk of failure. 

Failing to adequately prepare for negotiation can result in losing the sale, making a bad deal, and experiencing financial loss. Here's what you need to do before heading into a negotiation meeting.

Define the Goods or Services to Be Provided

The first and arguably most important thing to do is define the goods or services you require your vendor to provide. Knowing exactly what you need to get out of the negotiation helps you keep sight of the end goal while hashing out your proposal. It also allows you to prioritize your must-haves instead of wasting time on the things that may be nice to have before discovering the vendor cannot supply the goods or services you require. 

Decide Upon Your Negotiation Strategy

If you wish to succeed in negotiation, having a firm and well-rehearsed negotiation strategy is essential. There are several approaches that business owners can take when it comes to negotiation, including:

  • The I'm only asking for what's fair approach

  • The getting to yes approach

  • The offer-concession approach

  • The principled negotiation approach

Which strategy you choose to use will depend on your individual situation, so be careful to pick the correct approach for your negotiation. However, most business experts consider the principled negotiation approach to be the fairest strategy.

Do Research on the Counterparty

As with most things, doing your research prior to entering into a negotiation process is essential. Research ensures you better understand the counterparty, their position, and what you can offer them that they consider valuable. 

The most important things to research before negotiating include:

  • How valuable your business is to the vendor

  • The counterparty's hidden currencies

  • The wants and needs of the other party

  • Who the stakeholders are

Contract Presentation for Success

Another aspect of pre-negotiation preparation that is often overlooked is contract presentation. The appearance, flow, and format of your contract are vital when it comes to securing a good deal as it ensures the counterparty views you as credible and professional. One tip for making your proposal look great and winning over the counterparty is using an easy PDF compressor

Not Every Deal Will Be Successful

Regardless of how well prepared you are for negotiation, not every deal can be successful. And, while it may feel disappointing to walk away from a negotiation, not securing a deal isn't always a failure. Often, deals fall through because the timing is wrong or the parties discover they are not a good fit for one another. In these circumstances, losing out on the deal can actually be beneficial in the long term.

Bringing Out Desired Outcomes in Negotiation

There's no doubt that being well-prepared and well-researched is the most effective way to bring out desired outcomes during the negotiation process. 

However, if you would like more advice on how to effectively prepare for a negotiation meeting, consider joining your local chamber of commerce.