Styles of Negotiation For Business Owner

Styles of Negotiation For Business Owner

For this week’s tips, we briefly discuss a few of the better reasons to negotiate and some of the more popular styles of negotiation and when they may work to your benefit. 

A necessary part of doing business is the ability to negotiate.  We negotiate prices with vendors, salaries with employees and so much more.  One could say that negotiation skills are a fundamental part of doing business. For small business owners and entrepreneurs negotiation skills are critical to your success.   

“Let us never negotiate out of fear. But let us never fear to negotiate.” – John F. Kennedy
 
According to Wikipeida, negotiation is, “...a dialogue between two or more people or parties intended to reach a beneficial outcome…”
 
The ability to negotiate is a very important skill to acquire for business owners because they are used for agreements, contracts, salaries and more.   
 
Here are some reasons to negotiate:

  • Create a win for both parties: Win/Win
  • Improve your Bottom Line
  • Builds Respect
  • Evaluate goals from different perspectives/view points

 
“The whole concept of negotiating is intimidating to many people.” – Leigh Steinberg
 

Some of the most popular types of negotiating styles and when they may work best:


Compromise: When both parties are right and you want to keep the relationship


Collaboration: When you have time and a good relationship with the parties


Placating/Accommodating: When the other party requires status such as a remedy for a mistake that caused a hardship


Denial/Avoiding: When you need time to figure out the situation

“Know what you want in the negotiation session, and what you can live without.” – Richard Bayer

 

In addition to preparing for negotiation and for potential outcomes (of the negotiation), there are several available sources for you to gain and strengthen your negotiation skills such as business seminars and online resources.           

FL-Accounting and Advisers – your Boutique Accounting Company – is here to provide you with a complimentary consultation to discuss your accounting needs. Contact our office at (561) 939-2553 for your appointment. After-hours appointments are available as well as Accounting services in English and Spanish.

Wendy Ettorre