Small business owners use negotiation tactics every day. Whether finalizing a deal with customers, suppliers, or employees, having good negotiation skills can go a long way to boost the profitability of a business. Any small business owner knows how important it is to guard their reputation. It is how you attract (and keep) clients. Good negotiation skills not only help your bank account, but they can also help with your public relations. Here are three negotiation skills, with examples, to illustrate how you can use them with suppliers, employees, and clients:

1. RESEARCH: When you are negotiating, it’s important to do your research ahead of time. Small business owners have to negotiate contracts of all kinds, from rent to services to equipment rentals. If you are a good negotiator, you can cut down your overhead costs by negotiating discounts with your suppliers. One of the best ways to do this is to go to the negotiation armed with information. Call and get quotes from other providers. Learn what services you actually need, and be prepared to ask tough questions if the supplier is trying to sell you on a bonus product or service. Most importantly, never go into a negotiation blind. Always have a predetermined idea of what you think would be a fair outcome. While you may have to adjust up or down, if you feel like the result is too far away from your ballpark estimate, tell the supplier that you’d like to do more research and get back to them.

2. CREATIVITY: If you’re an effective negotiator, you will think creatively to find out ways to get what you want. Let’s say, for example, that you really want a certain employee, for his talent, but you can’t pay him the salary that he is seeking. An effective negotiator will be able to use creative means to get what they want. By exploring other options with the prospective employee, such as flex time, or even by selling the employee on the experience and the work environment that your company offers, you can get what you want (the employee) at a price you can afford. Being able to highlight what your small business has to offer is an important negotiation skill. Creative negotiators always find a way to make the person on the other side of the table feel like they’re getting a good deal too.

3. CLARITY: When you’re negotiating with clients or customers, it is important to be firm. They will respect you for it, and you will save yourself a lot of conflict in the long run. Good negotiators make sure that each “offer” they put on the table is clearly defined. When it comes time to close the deal, you should review all figures and terms with the client one last time, making sure you are all in agreement. Not only is this good practice from a legal, conflict-management perspective, but it also establishes a level of trust with the customer. It’s bad business to let the customer walk away thinking you agreed to three service visits, when you only intend to perform two. You don’t want the reputation of being a smoke-and-mirrors small business.

As you can see, negotiation skills can be a huge boost to your company. Stitt Feld Handy Group offers comprehensive negotiation training for small businesses and individuals. Contact us if you’d like to start learning how to employ these negotiation tactics in your small business today.

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To improve your negotiation skills and get the results you want while negotiating, please visit our Become a Powerful Negotiator Workshop page to learn more about upcoming in-person and instructor-led online sessions.

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