Negotiation Mistakes Entrepreneurs Make
The first steps that you take as an entrepreneur are going to teach you much more than you might believe. Unfortunately, most of the lessons are taught through the mistakes that you will make. This does include negotiations. When you negotiate and you do not know much or you do not have enough experience, there is a huge possibility you will make various mistakes. We will not think about all of them. We will just discuss those that are really common and that you will most likely make.
There is basically nothing that can ruin the negotiation as greed. When there is one party that is too aggressive or that pushes for too much, the communication channels break down since relationships are becoming sour.
One thing that many young entrepreneurs do not understand is that absolutely everything in business is personal. The relationships that are formed with partners will always be vital for current and future success. You want to be sure that you do not overvalue products or services. Entrepreneurs can so easily overvalue even their contribution or position during negotiations. Greedy behavior should always be stopped before it becomes something that cannot be controlled.
Remember that emotions will always cloud your judgment, especially at the start of your business journey. Humility and self-awareness are always needed.
Not Understanding Negotiation Type
We have two main negotiation types that normally appear. The very first one is what we normally refer to as asset negotiations. This is normally just one event that will have some pretty clear losers and winners. For instance, you could sell something. In this case you want to make sure you receive as much as possible. If you do this, your negotiation is successful.
The second negotiation type is the one in which there is a secondary purpose to maintain long term working relationship. This is normally more complex and will involve sophistication. Whenever this happens, you need to remember about admiration, respect and trust as all are very important and have to be considered as a part of the negotiation strategy.
Gambling With Something That Cannot Be Lost
As you try to play hardball, there is always the possibility that the other party is going to walk away. Because of this, it is usually tricky to create strategic relationships. In negotiations we do have time and money that is involved during the talks that happen. Eventually, the negotiation reaches the situation in which dissolution is preferred. In the event that you have to focus on relationship, the desire to play hardball has to be automatically tempered.
When referring to negotiations, the entrepreneur normally stands out as his own, personal, brutal enemy. Mistakes that are ego driven are common and will make the entire process incredibly difficult. It is really important that you are never greedy and that you focus on the type of negotiation that happens. Then, you need to know when you have to let something go in order to have the possibility to negotiate in the future. This is something that many entrepreneurs do not understand.