Are there rules for effective negotiations?
According to Anthony Tjan, founder of Cue Ball, a venture equity bill, there are four main rules for effective negotiations. He writes about them at the Harvard Business School blog. These are his four rules:
- Do your homework
- Don’t negotiate against yourself
- Get around stalemates
- Let the other party walk away
These are all very good tips and we have discussed some of them here as well. According to Tjan, the golden rule is the last one, willingness to allow the opposing party to walk away. Essentially, Tjan is saying one should stick to one’s guns. One should be straightforward with what one is willing to do and not to do.
Dr. Chester Karrass discussed 14 rules for winning in negotiation in his book: In Business as in Life—You Don’t Get What You Deserve, You Get What You Negotiate.
Here they are:
- Pick the best place and time to negotiate
- Have a “plan b” if the negotiation breaks down
- Be stingy with concessions and leave room to negotiate
- Buyers shouldn’t give seller quick counteroffers to their asking price
- Don’t say yes too quickly
- Buyers should always try to get cost breakdowns and sellers should not give them
- Don’t make the first major concession
- Watch concessions as deadline approaches
- Shut up
- Be skeptical
- Stop hoping for the best
- Watch out for funny money
- Know how to compromise
- You can always find a better deal for both parties
Are there rules you always abide by when you negotiate?