The Secrets of Business Negotiation: "Going First"

When we hear of someone being described as a ‘professional negotiator’, the image of a flak-jacketed police psychologist is the sort of image that might spring to mind. However, the fact is that there are many situations where negotiating and bargaining take place in everyday life, and this is especially true for entrepreneurs, start-up companies and small business owners. These types of business generally lack the resources to outsource negotiations and as a result their funding, licensing, supplier and distribution deals are generally done by instinct rather than learned skills or training. But the fact is that there are many elements to the negotiating process that need to be understood by smaller companies if they are to give themselves a fighting chance against tougher or more experienced opposition, these include: Knowing how to properly prepare Understanding the stages of the negotiating process Knowing how to create and exploit bargaining power Adopting the right behaviour and tone Dealing with tough or aggressive opposition Effective bidding and bargaining Knowing how and when to close rnAccording to Clive Rich, the London-based business negotiator and lawyer who has been the driving force behind deals worth in excess of $500m, one of the key factors is to seize the opportunity in order to set your agenda; “When you go first in a negotiation, you are able to move people towards your goals from the very start. When you go second, you allow other people to set the agenda and parameters of the deal.” This advice runs counter to the generally-held belief that one should never go first in negotiations. Rich, who has negotiated successfully with the likes of Simon Cowell, Sony BMG and Apple added; “It's a common misconception that it's better to go second as this "keeps your powder dry" and avoids you giving away your position. In fact if you don't set out what you want early in the bidding process you may not get a second chance.” He also points out that the use of new technology, such as his ‘Close My Deal’ business app for iPhone, can provide an edge for start-ups and small businesses that simply didn’t exist 10 years ago; Ever since the first text message altered the outcome of a deal, mobile technology has proved a vital asset to deal-making situations. For start-ups and small companies, having instant access to professional tips and information can give you another vital edge. When you feel you might be losing the edge in a negotiation, it’s often a wise move to take a break and consult these types of portable professional resources.