What are the 5 Steps and Phases in the Process of a Successful Business Negotiation?

In every company, negotiation is present in almost all areas: from suppliers to customers, including employees. Therefore, it is essential that you know the 5 steps in the process of a successful business negotiation. In this post we will explain them to you.

What is a negotiation?

Before entering the 5 steps and phases in the process of a successful negotiation, we must fully understand what a negotiation is. We can define it as a process by which it is sought to reach a common point without there being disputes between the parties involved.

In other words, it is a dialogue in which two or more parties try to agree to make a profit, either common or only for one of the parties. Its purpose is to resolve your differences and formulate an outcome that satisfies everyone involved.

An essential aspect in any negotiation is trust. If there is no commitment of the parties To carry out the tasks to fulfill the final agreement, the negotiations will not progress, and this will deprive all parties involved of the desired benefit.

Contemporary negotiation

At present, there are some alternative approaches to business negotiations. Some experts suggest a holistic approach, in which a result is sought that benefits all parties, placing great importance on human skills to achieve success.

phases of the negotiation process

In these types of collaborative strategies, it is crucial that the negotiator separates people from the problem and focuses on interests and proposals rather than positions. This will allow you to be more objective and come up with options for mutual benefit.

The first steps and phases in the process of a successful negotiation

Getting a negotiation to go in your favor is a complex task that requires experience and impeccable methodology. With this, you can establish arguments to defend your proposal without the client or opponent noticing your concerns. To do this, you just have to follow these 5 steps or phases:

  • Preparation. The first thing you should do is define what issues will be discussed, as well as your goals or aspirations and the most and least favorable scenarios for you. You must also be clear in which aspects you would be willing to compromise and in which not.
  • Dialogue or exploration. In this second phase, you must get in touch with the person with whom you will negotiate, and each one must put on the table what interests them. Make sure you are vigilant and learn what motivates or inhibits the other party, as this will help you know their intentions.

Another important point that you should find out during the exploration is the most that your counterpart would be willing to pay for what you offer, and compare it with the objectives you set for yourself. And you shouldn’t neglect good market research for your strategy.

  • Proposal. Once you have thoroughly studied the aforementioned aspects, you should put together (or wait from your counterpart) an initial offer, which will serve as the basis for the rest of the negotiation. Keep in mind that the higher you aim, the more you will get.

successful business negotiation

Once you have listened to the proposal, you should make sure that you have understood it and feel the possibilities of exchange. Then, proceed to give the other what they want (within the limits you established before), but on your own terms, always applying sales strategies that are effective for your company.

We continue with the steps and phases in the process of a successful negotiation

  • Exchange. This is a key phase in which you must be aware of any expression of weakness from your counterpart so that you can take advantage of it, getting him to make a concession. Ask before giving, and put conditions before making offers.
  • Agreement. It is the goal of any negotiation, and preferably all negotiated terms and specifications should be in writing to avoid misunderstandings.

You must remember that a negotiation will move forward as long as realistic proposals are exchangedBut it will stagnate if discussions are based on the feelings or opinions of the parties involved. And to conclude, do not forget that all negotiations must go hand in hand with a good marketing strategy that ensures your success.

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