Negotiation tips from a pro (2/3): If you are at the table, you always have some leverage

In the experience of negotiating strategist Corey Kupfer, an attorney and the author of a book entitled Authentic Negotiating: Clarity, Detachment, & Equilibrium — The Three Keys to True Negotiating Success & How to Achieve Them, some people still fail to prepare properly even if they are about to enter multibillion-dollar negotiations. 

Especially entrepreneurs are sometimes so confident in themselves that they think they will be able to wing it somehow. In a lot of situations, such an approach might even bring some benefits; however, when it comes to very important negotiations, you could end up getting badly hurt.

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Do you really have no leverage?

If you are at a startup, you may assume that since you are at a very early stage, no venture capitalist will be willing to work with you. You may think you have less leverage, nothing to offer. In fact, you might have similar feelings even if you work for a large corporation.

That said, if you are already at the negotiation stage, you know your counterpart is interested in your company rather than one of dozens of others. You have gained their interest – and that is your leverage, according to Corey Kupfer in an interview for the website of Wharton university, which we began tallking about in the previous article.

Although leverage still counts, once you have learned how to be a skilled negotiator, you’ll get better deals no matter what sort of leverage you have. However, knowing who you are and what you are is necessary in order to design your negotiating strategy.

And there’s always a point at which, no matter how big the other side’s leverage over you might be, the deal will just not work for you. Once again, as mentioned in the previous article, clarity is of the essence.

When you know exactly you want to achieve, in the same way as if you are desperate, your counterpart will sense it. Confidence, based on sound preparation and an awareness of what you want to achieve, does matter.

The importance of proper pace

Another problem mentioned in the interview is rigidity in timing. A good dealmaker should never artificially push the negotiations too hard. On the other hand, nor do you want to lose momentum. The deal must move forward. So trying to gauge the proper pace is crucial.

Book: 

Kupfer, C.: Authentic Negotiating: Clarity, Detachment, & Equilibrium — The Three Keys to True Negotiating Success & How to Achieve Them; Advantage Media Group, Charleston, South Carolina: 2017 (148 pages)

-jk-

Article source Knowledge@Wharton - the online business analysis journal of the Wharton School of the University of Pennsylvania
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