How to Become Better at Making Deals
No businessman acts the way movies show them. They give a false impression of what happens. Those who negotiate over the sale of a business are expected to shy away from all the vices displayed in such fictional works. What is actually needed is a calm temperament, sense of humor, and the ability to leave your sentimental attachments out of the equation.
A review of previous performance reveals that those who choose to remain calm and rational as the negotiations proceed, as well as being sincere, honest and approachable manage to land the best deals. It helps when they keep their emotions in check. If you are buying, the seller needs to view you as someone who is working with will not be a stressful experience. those who have been tasked with the negotiations will benefit from this information.
Those who are emotional will tend to ignore every good thing they are being offered. It also makes reading a situation difficult, as emotional people are not predictable in their behavior. It becomes hard to take the offer and devise ways to make the most out of it. An emotional high is detrimental to their settlement point. It is possible, though not common, to use emotions to your advantage. If you want to succeed in the negotiations, you will have to be nicer. There are many advantages to this.
A nicer outlook helps a buyer when the seller takes the time to listen to your lower counter offer. The most crucial part of any negotiation is during the stating of the offer. It greatly helps when the presenter has a nice personality, so that the seller does not feel insulted or exploited. A nice personality makes it easier for the seller to stomach your offer. They will even take their time to analyze it. Negotiators lacking in this quality are not people brokers of such buys wish to see again. They have proven to be detrimental to their trade.
If you happen to be selling, the imperfections of your business will be easier to overlook. These imperfections are normally revealed when the buyer looks into the business prior to the meeting. They look at things like what software you use for bookkeeping. You may not be using one that is up to their standards. Being nice will improve your chances. You will also have to be very honest. This open nature makes it believable when you point out the benefits of the buy to them.
The seller needs to see a certain level of respect for their work when the buyer addresses the business. They made it worthy of the buyer’s attention. Do not limit your respect to the negotiations; they can tell. When the seller understands that you mean their business well, they shall oblige.
A seller will have to display patience. The buying process tends to take a long time. For every question the buyer will ask, the seller must be willing to respond well. This is critical to the process. The buyer does not know a lot about the intricacies of the business.
It is important to present all your information in an organized manner. As part of your induction into the business, you can offer to train them on what normally happens in the business.
Ensure the seller receive your sincere compliments. This is their creation, and they put so much into it, so you offering lower than what they expected is already hard on them.
To make the most of such opportunities, it helps to be a nice negotiator. More business tips can be found on the Cheval Capital blog, where their managing director Hillary Stiff offers more of such great advice.