While the highly competitive may view winning as everything, in negotiations the best wins are those where all parties feel like winners.

The owner/manager and other key people in the business will often have to negotiate terms and other arrangements in the course of business. The situation could involve improving business processes such as purchasing mobile communication services, getting retail placement for a new product line, setting out the terms of an agreement or contract, or planning a strategic alliance with another company. Alternatively, negotiation may involve resolving an unfortunate situation with a customer, employee or supplier.

The goal of successful negotiation is to arrive at a mutually acceptable agreement that is a win-win situation for both parties. Here are some guidelines that can help you plan a successful strategy for business negotiations that will achieve your objectives.

Set Out Your Objectives

It is important to separate the issues between items that are non-negotiable and items that are negotiable. Exactly what do you hope to achieve in the negotiations? Your important matters might include a specific dollar amount, a completion date, a guarantee or warranty, on site service, the placement of your product, just-in-time delivery and many other factors that are important to your company.

Prioritize

Write down and prioritize the most important items or issues that you plan to negotiate and continue down the list to the least important. Consider that from the middle of the list, these items are ones for which you may be able to find compromises if necessary.

Prepare

Before commencing negotiations, carefully review your position in view of any reasons why the other party may not agree with your points or requests. Considering the other party's point of view will help you refine your approach and address assumptions. It may also reveal a need to prepare more documentation to support your position. If, for example, the customer's requirement for an earlier delivery date could result in you having to hire additional staff, calculate these potential costs into your cost figures. If you are negotiating a settlement on an outstanding accounts receivable, determine beforehand if you are willing to accept a partial payment to reinstate the account or write off the interest or penalty on the past due amount.

Get Input

If the matter warrants, involve key people in your company in the pre-negotiation plans and analysis. Their participation can improve the quality of the analysis by raising pertinent questions and providing data that you may not have considered. You will also be able to determine how flexible various people may be on certain issues if the negotiations will have an impact on their job responsibilities, such as a requirement for overtime work or business travel. If these key people will be directly involved in the negotiations, these discussions will also increase the effectiveness of your team and ensure that you all speak with a unified voice.

Get Professional Advice

Before entering into negotiations, it is advantageous to discuss matters with Logan Katz LLP Chartered Accountants and your lawyer. Where matters need further investigation or input from your professional advisors, do not proceed to negotiate the arrangement or settlement until you have discussed the issues with them and determined the best way to deal with them to your satisfaction.

When You Meet

The timing and place of negotiation is important to both the process and the outcome. Set aside the appropriate time for the discussion in a setting that is both private and free of interruptions and distractions. If you are meeting in your office, put the phone on call forward and instruct staff not to interrupt the meeting.

Before you begin negotiations, ask the other party to present their position. Listen carefully to what the other party says rather than interject with your needs or position. This will help you better understand their position so you can better determine what they can provide, what you still need, and where you will be able to compromise. If the other party makes a suggestion that was already on your list, give them credit for coming up with the idea.

Throughout the process, stay focused on your priorities. Keep in mind that both parties bring their own values, needs, and agenda to the negotiation table. By validating the legitimacy of the other party's position, you can then work within that framework to develop a resolution that is in line with both of your objectives.

In some instances, it will be necessary to raise difficult questions or address serious reservations. Clarity builds trust, while avoidance of major concerns can lead to confusion, unease and suspicion. This does not suggest a carefree attitude, but rather that the focus of the meeting should be to meet challenges and solve problems together. If the issue at hand is likely to be tense, do all that you can to avoid confrontation. If tempers do erupt, terminate the meeting and reschedule at a later time.

Be Flexible

Achieving a "yes" for as many of your objectives as possible is an admirable goal but knowing when to accept a "no" is an equally intelligent strategy. Focusing on the goals that are a high priority and getting a positive response to as many items as possible will ensure a better outcome than insisting on "yes" for all your goals and ending up with no agreement or resolution.

Where it appears you cannot reach a decision, it may be possible to build some flexibility into the agreement by specifying areas to be renegotiated due to changing conditions. Some details may be left open if they are dependent on future information. By agreeing to determine these details at a more opportune time, you save time and build trust by establishing intent.

Verify

Verify with the other party their acceptance or disagreement with any proposed adjustments or requirements. Verify the computational accuracy of any changes to financial figures. Taking the time to assess and calculate the impact of any changes in the terms or arrangements will avoid surprises. Be sure to document any additional matters that are discussed.

Get It in Writing

Once both parties have agreed to the negotiated terms, arrangements, or settlement, the next step is to get it in writing. However, before signing on the dotted line, consider whether you need financial and/or legal advice.

The negotiating process and the resulting formal agreement are both important to the success of any agreement that you reach. Careful preparation and analysis prior to the start of any negotiation will improve your ability to determine a successful strategy that can help you achieve your objectives.

The above provides general information only. It should not be regarded or relied upon as accounting or taxation advice or opinions. Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.

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