Negotiation Tips for Business Owners – Episode #35

by Richard Wilson on June 23, 2011

In this Singapore-based episode Richard provides his best advice on how to negotiate more effectively.   While everything suggested has been used and works well, most of this knowledge originally came from Harvard Business Review articles and courses on negotiation at the University of Portland and psychology class from within the Harvard University’s ALM program.  (Download this Video MP4 Video)

 

 

Video Transcript/Summary: It is critical that you know the very basics of negotiation so you can call the bluffs of others and not overpay for every asset your business needs to grow including employees, domain names, office space, consultants, etc. 

For example, I just closed on buying the brand of a small competitor who claimed they were making $25,000/month in their business with this certain asset that I wanted to buy. I acted genuinely surprised (as I truly) was and the another business owner chimed in that it actually wasn’t producing much revenue for them but they would sell it for $35,000.  I offered them $8,000 and they countered with $15,000. I then showed them a comparable asset I had purchased for $10,000 and they settled at $9,500.   This is exciting for us because it is an asset that will really boost our profits by potentially $1,000/month. 

I am not even close to being an expert on negotiation but during that negotiation I used tactics such as golden silence, showing third party proof of similar transactions, using figures and data to backup my claims, and positioning tactics.  I made it obvious that we could move on with our business without this asset without insulting them in the process.  I hope this shows you why negotiation is so important as a business owner or CEO.   I am willing to bet that my knowledge of negotiation saved me at least $1,000 on that transaction alone so I hope this advice will help you make or save at least $1,000 very soon as well.

Thanks for joining us, and I will see you again soon,

 

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