The ability to negotiate is an important part of doing business. Whether you are a job candidate discussing your potential salary or a sales manager trying to land a business deal, you will have far greater success if you learn the art of negotiation. In fact, this is one of the main qualities employers look for when recruiting new employees. While some people have the natural ability to take charge of a conversation and persuade easily, many others aren’t as naturally gifted. However, with time, practice, and dedication, anyone can improve their negotiation skills. If you want to become a better negotiator, consider these essential skills and qualities every successful negotiator must have.

Patience

Patience is one of the most important attributes of an effective negotiator. Negotiation is a complex process that takes time, so patience is important because it equates to more time and with more time you can discover key ideas including strengths and weaknesses. It also allows you to discover the other party’s needs and wants. Patience brings more information to the table which, in turn, can equate to more money and a better outcome for everyone. 

Persistence

Some of the most naturally effective negotiators are children because they possess this important skill. Children are some of the most persistent people on the planet and they just won’t take “no” for an answer. While it is certainly not recommended to act like children when you are in a professional setting, we can still learn from their persistence. When you hear the word “no” in a negotiation, that doesn’t mean it’s time to give up. It simply means it’s time to get creative and uncover new solutions. 

Active Listening

The best negotiators know how to listen attentively to the other party during a conversation. They spend far more time listening and asking questions than they do talking. Active listening allows you to gather important information so you can thoroughly understand the needs of your counterpart. When you listen, it also helps to build trust so the negotiation can move forward. 

Emotional Control

It is important that negotiators have the ability to keep their emotions under control during the conversation. It’s easy for things to get heated when negotiations get frustrating but allowing your emotions to take over can worsen the situation. There will be times when you are dealing with difficult personalities but you need to be able to remain calm during the negotiation process. 

Verbal Communication

Great negotiators have the ability to communicate clearly and effectively. They must be able to state their case clearly in order to avoid misunderstandings. 

Problem Solving

Another essential skill for a great negotiator is the ability to find multiple solutions to problems. Instead of only focusing on their own desired outcome, great negotiators look for solutions that benefit both parties.

Summoning the courage to ask for more money can be tough, especially if you are worried that it might cost you your job. However, if you want a raise and you feel like you deserve it, you need to ask for it. The key to managing the nerve-wracking process of negotiating a raise involves the right preparation and a firm understanding of your value and your company’s market conditions. The following tips can help you prepare for this difficult task so you can increase your chances of earning the raise you deserve. 

Do Your Research

Before you head in asking for a raise, you need to have a pretty good idea of what the average salary range is for your position. You can check salary ranges on the U.S. Bureau of Labor Statistics website and you can also research annual reports by industry. You also want to consider your geographic location, how many years of experience you have, and your academic degrees to help you come up with a salary that is fair and reasonable. 

Record Your Accomplishments

If your only justification for a raise is that you want more money, you aren’t likely to get it. You need to have evidence of your successes and accomplishments so you can prove your value as an employee. Make a list of any awards or accomplishments and consider your performance reviews and positive feedback from managers and clients. You need to be able to prove your worth and point out specific times when you went above and beyond the call of duty. 

Consider Other Benefits and Perks

It’s not always possible for your employer to give you more money if it’s not in the budget. That said, there are alternative benefits that you might be willing to accept in lieu of money. A few examples of perks and benefits include:

-the option to work from home

-different hours or a more flexible schedule

-more paid time off

-tuition reimbursement or professional development opportunities

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Rehearse

Just as a public speaker practices before a presentation, you also need to rehearse what you are going to say in a salary negotiation. Rehearsing your negotiation will make you more confident and prepared when it comes time to ask for a raise. Make sure you plan for some objections and how you are going to respond. 

Time it Right

Timing is everything when it comes to asking for a raise. If you meet with your manager when they are stressed about a big deadline or when the company is dealing with layoffs, you are setting yourself up for failure. It’s always beneficial to approach your boss right after you’ve done well on a project or taken on extra responsibilities. You want to catch them at a time when they see what a valuable asset you are to the team. 

You have spent time gathering information, formulating solutions, and preparing for your negotiation, but aside from all of the preparations, you must also focus on maintaining a professional environment when negotiating. The staging of the negotiation can have lasting ramifications on the relationship between the parties involved, so it’s crucial to get that right. The right atmosphere can have a psychological and emotional impact, so here are a few tips for how to create the ideal setting for professional business negotiations. 

Choose the Right Location

When it comes time to choose a location for your meeting, some inexperienced negotiators might immediately suggest their own office, assuming this will give them a sort of “home court advantage.” However, it may better serve you to suggest either a neutral location or “their place.” Suggesting your own office might make the other party feel slighted, and this is not the best way to start the relationship. On the other hand, offering to meet at their office shows your willingness to compromise and be considerate. This also shows that you are confident enough in your position to negotiate anywhere. A neutral location can also be an acceptable option, assuming the location has the proper technological necessities and isn’t too noisy and distracting. 

Avoid Bars, Lounges, or Personal Locations

Some people might assume that a bar would be an acceptable location for a business negotiation, but it doesn’t exactly lend itself to professionalism. For starters, alcohol can inhibit anyone’s ability to make proper decisions. Furthermore, some people might find a bar to be an off-putting location to do business. Rather, stick with a nice restaurant, coffee shop, or conference room where there are less distractions and a more professional ambiance. And never, offer to meet someone at your home or theirs. 

Mind Your Manners

Aside from the physical location, your demeanor also contributes to the environment. Business negotiations can be tricky and might even get heated from time to time, but keep your emotions in check and commit to remaining genuine and respectful at all times. Your goal is not only to pitch your product or service, but you are also selling yourself. Make a good impression by keeping a respectful attitude, listening to their needs, and remaining firm but fair at all times. 

The right environment is necessary to keep everyone in the negotiation focused and on track. Remember to choose a suitable location that is convenient to all parties and always make sure the location has the proper equipment and internet capabilities if needed. Putting thought into the atmosphere for your next business negotiation can help you close the deal.

Business negotiations can be a tough balancing act. One one hand, you don’t want to come on so strong that you drive business away. On the other hand, you don’t want to appear so timid that you lack confidence and credibility. In order to strike the right balance, it is important to be firm, yet polite so you exude confidence and respect at the same time. In any business negotiation, there are social guidelines and manners that need to be followed when dealing with others. Proper business negotiation etiquette will keep you from stepping on toes while also keeping your goals in perspective. Here are a few business etiquette tips that are crucial to a successful negotiation. 

Be Patient and Listen

One of the most important components of polite business etiquette is the ability to listen. Even though you are entering into the negotiation with a goal in mind, you must remember to take time to listen to other viewpoints and hear the needs of the other party. Ask questions like, “What are you hoping to get out of these negotiations?” and “How can we help meet your goals?” By not rushing the process and listening to the other party, you are more likely to successfully negotiate a win-win solution. 

Be Genuine and Respectful

It is important to remain polite and respectful toward your counterpart, regardless of whether or not you are able to solidify a deal. Even though negotiations might require you to be firm at times, it is not appropriate to ridicule, attack, or belittle your counterpart. Negotiations can get heated at times, but the number one rule of etiquette is to remain calm and collected and never let your emotions get the best of you. When you are negotiating, you are selling more than a product or a service. You are also selling yourself. You want investors, customers, and clients to see you as a genuine and likeable person so they will be inclined to do business with you in the future. Express gratitude, show sincere concern for their needs, and remember to stay humble at all times. 

Know When to Back Down

Be prepared to take the high road and back down when negotiations become heated. Anger and frustration will damage the negotiation process and cause the other person to respond defensively. Business negotiation etiquette is always more important than ugly deal making. Your main goal should be to work toward a solution that is beneficial for both parties, so try to re-establish common ground and look for similar goals. No matter how the other person acts, you can walk away knowing that you acted in a professional manner. 

Be Fair

In any negotiation, you have to be prepared to be flexible. If you enter into a negotiation refusing to compromise, you will quickly irritate your counterpart and sabotage your chances of closing the deal. Negotiations are about give and take so you need to be ready to make concessions. Know your bottom line but be open to alternative solutions.

In order to better understand and facilitate successful business negotiations, negotiators should adhere to the PPP model which states that any negotiation is a process where people try to resolve a problem. Negotiators often struggle to reach a mutually beneficial solution because they fail to identify the real underlying issues. When a problem is not identified, it’s likely that the rest of the negotiation will unravel due to lack of understanding of the core issues at hand. Therefore, every negotiator needs to first identify the root of the problem before proceeding with the negotiation. 

What Are Pain Points?

In every negotiation there are two sides who are each looking to have their needs met. A pain point is a specific problem that one side is experiencing. They can be varied and diverse and in some cases, the person might not even be aware that they have a problem. As a negotiator, it’s your job to identify the problem, convince them that they have a problem, and offer a solution that will help. There are four main types of pain points: 

Financial: your counterpart is looking to save money 

Productivity: your counterpart is spending too much time on a specific task and they need a way to work more efficiently

Process; your counterpart needs to improve internal processes 

Support: your counterpart isn’t receiving the support they need in dealing with issues

Understanding these pain points allows you to position yourself in a way that will offer a solution for the other party. 

How to Identify Problems and Pain Points

In some cases a customer might come to you with a problem already in mind and they are ready to discuss it with you. In other cases, they might not realize a problem exists and it’s your job to find out what it is. You will need to conduct qualitative research by focusing on their response to open-ended questions to figure out the underlying problem. One of the best ways to identify your customer’s problems is by really listening to them. Ask questions that require more than a one word answer and encourage your counterpart to talk. The more they talk, the more information you can gather about their needs. 

Once you have identified the key problem, you can tailor your negotiation to provide a solution that your counterpart cannot refuse. Explain their pain points and then discuss how your solution will solve that problem. When you have identified a problem and demonstrated a way to solve it, you are more likely to walk away with a mutually beneficial deal. The customer will be more likely to adhere to your demands if they feel like your product or service will make their life better.

When you are negotiating a job offer, you should be bartering more than just your salary. The benefits and perks that come with your job can be equally important so you want to think about your total compensation package. Some companies might also have a more rigid salary structure leaving more room to negotiate employee perks and incentives like additional training, health and wellness programs, and a  flexible work schedule. These perks can make your job more enjoyable and in some cases might actually be worth more to you than your salary. So, if you’re not being offered the big salary bump you were hoping for, here are a few other perks worth negotiating. 

Stock Options

Even if your salary is at its max, hiring managers sometimes have other ways they can raise your compensation and one of these is through stock options. Although stock options are a riskier move because their value is based on things outside your control, they do have the potential to make you money down the road and they can end up being quite lucrative. 

401(K) Match

It’s never too soon to start saving for retirement and you should never pass up the opportunity to have your employer help contribute to your savings. A 401(K) match can be a great way to invest in your future and this perk can end up being extremely valuable in the long run. While you might not see that pay bump on each paycheck, you can rest easy knowing that you are contributing more to your retirement fund. 

Wellness Programs

Companies want healthy employees because they are less likely to call in sick and they file fewer insurance claims which can help lower premiums. Thus, your company might be willing to invest in wellness programs for employees. They might pay your membership to a local gym to show their vested interest in your health. This savings means more money in your pocket each month so it can be worth negotiating. 

Flexible Work Schedule

This can be one of the most valuable perks for any employee and can actually be beneficial for your employer as well. The average commute time in the U.S. is around 30 minutes so this adds up to an hour of work that is potentially lost. There are also costs associated with commuting such as gas, parking fees, and train or bus fares. A flexible work schedule is among the most desirable perks for today’s employees because it saves time and money. This perk is especially important for employees who have children and need flexibility to get them to and from school. 

Education Benefits

Some employers offer tuition reimbursement programs and are willing to pay for employees to pursue their MBA. However, degrees aren’t the only educational benefits that can help advance your career. It’s worth negotiating for professional development opportunities that can help employees build skills that are useful in the workplace. Having a job where you get the chance to develop your skills can have a major payoff in the long run.

Society is constantly changing and evolving and businesses need to be mindful of certain factors that can influence business decisions. When entering into negotiations, businesses should be cognizant of the customs, beliefs, practices, and behaviors surrounding the other party. By taking these social factors into consideration, they will have a better understanding of the needs and wants of their counterpart in order to reach a solution. Social factors can greatly affect one’s attitudes and opinions, thus impacting sales and revenue. Therefore, businesses must utilize and adapt to the external social environment in order to negotiate successfully. Here are a few reasons why it is so important for businesses to welcome suggestions for improving their awareness of the social environment. 

Understanding Consumer Preferences

Some companies have very strong beliefs towards social issues so businesses need to be aware of such beliefs when entering into negotiations. For example, the company might have strong feelings about energy conservation which would greatly impact their consumer preferences. Some cultures have certain religious or personal beliefs that would affect their opinions on clothing, food, or other social norms. Therefore, it is important for members of your team to adequately research companies prior to negotiations so they can offer ideas and suggestions that might align with the social environment of your counterpart. 

Building Trust with Clients

Every negotiation involves risk, which is why it is critical to build trust between your business and your clients. One way to build this trust is by being sensitive to the social environment of your client. By improving the social environment, you are learning more about the needs of your client while respectfully negotiating a deal. Establishing trust is critical to success in any negotiation so it is wise to accept suggestions for ways in which you can build that trust.

Speak Their Language

When you have a deep understanding of the social beliefs of your counterpart, you can align your negotiation in a way that speaks their language. Be cautious of slurs or cultural implications and take time to understand the other party’s history, culture, and perspective. Welcome suggestions for how you can customize your negotiation to respect the needs and beliefs of your counterpart. Doing so sends the message that you are committed to the relationship and this will build a foundation of trust with the client. 

In order to negotiate a successful deal, it requires a well-crafted argument, solid customer motivation, and practical solutions. However, even if all of these elements are present the deal can fall apart if negotiation leadership and teamwork are absent. The most effective tool you have when it comes to negotiating is your team. There is a widespread belief regarding “strength in numbers,” which suggests that the more players you have on your team the better off you will be. There are several benefits to taking a team approach to negotiating and these teamwork principles can help you achieve the outcomes you desire. 

As you prepare to negotiate a big deal, it is important to assess the purpose of the negotiation by brainstorming a list of issues you would like to discuss. It can be helpful to do this with a team, so you can have input from various people involved in the deal. It’s a great way to collaborate and prioritize issues and consider potential tradeoffs. Together, you can write down the issues that are most important to you and which concessions you would be willing to make. It is equally important to consider the other side. What is motivating them? What are their needs? What are their pressure points? This is where a team can be extremely helpful. You can use the team’s knowledge and expertise to estimate the priorities of the other side, which can help offer some direction for the negotiation. 

A team approach can also be helpful when searching for possible solutions for the negotiation. This is because your team has a diverse set of skills and you can utilize the strengths and skills of each team member. Together, you can offer ideas and suggestions for possible solutions that will help you reach a win/win outcome. 

Anytime you are entering into a negotiation, it is to your benefit to have multiple options available for your counterpart. The more solutions you offer, the more likely you will be able to close the deal.  You need to take advantage of the knowledge and skills of your team members to come up with various solutions. Working as a team can be especially beneficial when dealing with a complex negotiation that requires a diverse set of skills and expertise. By requesting different solutions from your team members, you will have sufficient information and ideas that can be used to achieve optimal solutions.

Managers are responsible for handling the day to day operations of their department, and this includes dealing with the budget. No matter the industry, the responsibility of the budget manager is fairly similar: maximize profit and minimize expenses without damaging the quality of the business. Keeping up with your department’s budget can be a challenge, especially when a manager is faced with the decision of how to cut expenses without cutting standards. Here are a few tips for developing a budget negotiation strategy in order to resolve financial problems. 

Consider the Company’s Bottom Line

Final budget decisions are made based on how they will affect the company’s bottom line. Therefore, when you enter into a budget negotiation, you need to come prepared with all of the department’s expenses for the coming year. You need to demonstrate a knowledge of existing expenses before you can negotiate additional items. Then, when you ask for things like salary increases, a higher travel budget, or additional hiring, you need to provide solid information to show how these extra expenses will increase the company’s bottom line. If you can back up your requests with numbers that show the true value, you are more likely to get approval for your new budget. 

Show Long-Term Benefits

Another way to get your budget approved is by extrapolating costs and benefits over a period of time. For example, if you are asking for an increase of $100,000 to hire more people, show how the productivity of these new hires will benefit the company over the next five years. Compare this increase in profit over the years to the cost of new hires to show the long-term benefits of your proposal. 

Be Prepared to Compromise

When you are trying to resolve budget problems, you need to be willing to listen to the concerns of others. This is not the time to play hardball, but rather demonstrate an understanding of the company’s financial concerns. You need to enter into any negotiations prepared to compromise. You can start by asking for more than you need, and then slowly drop that number to show your willingness to compromise. 

Remember to Work as a Team

Unfortunately, budget negotiations can sometimes lead to disagreements between departments. However, part of budget negotiation is remembering that you are all working toward a common goal, which is to improve the company’s bottom line. This might mean increasing the budget in some areas and giving up money in others for the benefit of the company. Be willing to work with other managers to develop a budget strategy that will be successful for the company as a whole.

You can’t possibly prepare yourself for everything that could go wrong during a business negotiation, but you can evaluate potential problems and do your best to avoid them. Sometimes even the best negotiators fall into traps and leave resources on the table because they didn’t anticipate pitfalls. That’s why it’s always important to consider these possibilities so you can be prepared to face any problems that might come your way during a negotiation. 

Authority to Negotiate

You may have spent days preparing to close a big deal but all of that could be shut down immediately if you aren’t in contact with the right person. Before entering into any negotiation, be sure the person you are negotiating with has the authority to make decisions. Don’t waste your time talking to the middle man. When it comes to negotiating, you only want to deal with the decision makers. 

Understanding Their Needs

One of the biggest problems for many negotiators is their lack of concern for the other party involved. Some people only think about their own interests and they tend to ignore the needs of the other. Emotions can also get in the way at times, hindering your ability to come to a mutual agreement. Failing to acknowledge the other’s needs can be a huge problem in any negotiation. 

Assuming You Both Want the Same Thing

Another problem that you might face in a business negotiation is the false assumption that you and your counterpart want the same things. This is a common mistake that can make it difficult to reach a solution. Be sure you are well aware of both your needs and the needs of your counterpart prior to entering into negotiations. 

Poor Planning

Walking into a negotiation without fully preparing for it is a recipe for disaster. Successful negotiators make detailed plans and they know their goals and priorities on the front end. Likewise, they have a list of concessions ready-should they need them. They are fully aware of their BATNA and walk-away point so they don’t have to worry about making a rash decision in the heat of the moment. 

Aggressive Behavior

Unfortunately, not everyone is peaceful and respectful during negotiations. Some negotiators can be quite aggressive and use bullying tactics to get what they want. You must prepare yourself for these kinds of negotiators and have a plan in place for how you will handle aggressive behavior. You need to be able to remain calm and respectful in order to reach a mutual agreement even in a hostile environment.