8 Expert Negotiation Tips for Entrepreneurs

At a recent conference in Toronto, members of the Dream Payments team had the opportunity to attend a panel featuring superstar entrepreneur Manjit Minhas. She’s the co-founder of Minhas Breweries, a television personality on CBC’s Dragon’s Den and a successful venture capitalist. Minhas offered incredibly insightful advice to the audience of business owners, investors and attendees hoping to follow in her entrepreneurial footsteps. She also said one thing that really caught our attention: "You don't get what you deserve in life. You get what you negotiate."

With that in mind, we’ve curated eight expert negotiation tips from the Dream community that every business owner needs to know.

1. Know your end goal before you negotiate.

By figuring out what you want to accomplish ahead of time, you’ll enter negotiations knowing what matters most. Rank your top goals in order of importance – whether it’s hiring a supplier at a certain price point or tapping into a new base of customers to grow your business. Understand what you need now and which goals you need to accomplish in the long term.

2. Always come prepared.

Whether you are trying to close a deal, secure a new partner, do business with a different supplier or make a sale, it’s critical to know your stuff. This could be anything from information about a product to numbers for an investor. Review the background of the person, organization or company you are meeting with by reading their website, press releases, social media profiles and any other information you can find by searching the web. Try to find stats to help prove your points. Ultimately, doing this research will help you to be more persuasive and negotiate better terms.

3. Listen

Good negotiators are also good listeners. They hear what the other side is saying, understand what they need and respond to those specific desires. Remember, a successful deal of any type means that both sides come away happy.

4. Be flexible.

While it would be nice, nobody can have everything they want. So, it’s important to know where you are willing to compromise. For example, are you willing to pay more for expedited delivery on a new shipment or can you wait longer to get a better price? Can you wait a couple of weeks for a service in exchange for a discount? Enter negotiations knowing what you are willing to give up to get what you need.

5. Always remain professional.

This point seems obvious, but entrepreneurs tell us it is an important one to emphasize. Showcase your professionalism in all negotiations and business dealings – even after the deal is done. People will remember if you behave badly and you never know if you’ll cross paths again in the future.

6. Prepare a draft agreement.

If the matter you are trying to negotiate involves a contract or purchase order and it feels appropriate, bring a draft to your meeting. It may not be the document you end up signing, but it helps to lay out the key points for discussion. Consider including things that are important to the other party to show you have their interests in mind too. You’ll discover these things during your research to prepare for the negotiation.

7. Maintain momentum.

If you’ve agreed to terms, keep things moving. Revise, draw up or review the necessary paperwork. Respond to questions as quickly as you can. Involve a lawyer to protect your interests if necessary. He or she may also be able to turn documents around more quickly. But, don’t make quick decisions that you may regret later because you’re in a rush.

8. Know when to walk away.

If a deal doesn’t offer what you need, and you can’t negotiate satisfactory terms, it may be best to politely end talks and look elsewhere.

By following these eight tips, you’re ready to become a master negotiator! Know what you need, come prepared, listen to what the other party needs, be flexible and professional, and be prepared to walk away if you can’t negotiate terms that are good for your business.