GET BETTER AT NEGOTIATING! (PART 2)

Know Your Stuff
You need to learn as much about the other person's situation. This is a particularly important negotiation tactic for sales people. Ask your prospect more questions about their purchase. Learn what is important to them as well as their needs and wants. Develop the habit of asking questions such as;
"What prompted you to consider a purchase like this?"
"Who else have you been talking with about your needs?"
"What has your experience with them been like?"
"What time frames are you working with?"
"What is most important to you about this?"
It is also important to learn as much about your competitors as possible. This will help you defeat possible price objections and prevent someone from using your competitor as leverage.

BATNA

BATNA stands for best alternative to a negotiated agreement. This is an important negotiating theory that you should understand. Click here for a good description of it.

GET BETTER AT NEGOTIATING! (PART 1)

Negotiation is a skill that is very important for many reasons. For your start-up it can mean the difference in margin percentage on a sale, or the additional service you may need from a vendor or supplier. As an entrepreneur, don't underestimate the power of negotiating.

Practice, Practice, Practice:
Many people lack confidence when it comes to negotiating. You can develop this confidence by negotiating more often. Ask for discounts from your suppliers and vendors. As a consumer, develop the habit of asking for a price break when you buy from a retail store. Here are a few questions or statements you can use to practice your negotiation skills:

• "You'll have to do better than that."
  
• What kind of discount are you offering today?"
  
• "That's a bit too expensive." Wait for their response afterwards.
  It's ok to flinch!


• Be pleasant and persistent but not demanding. Condition yourself to negotiate at every opportunity will help you become more comfortable, confident and successful.
  

Be Prepared to Walk Away:
When you're the one selling, remember, tt is generally better to walk away from a sale rather than to give away the farm. This is particularly tough to do when you are in the midst of a sales slump or slow sales period. But, remember there will always be someone to sell to.

ENTREPRENEUR TO LEADER

Here is a special post that you can also find at our Start-It-Up Cafe Cast. This audio cast touches on the unique leadership aspects that are required of an entrepreneur. Listen Up...

2 KOOL 4 SKOOL!

In my last post I briefly discussed the importance of evangelizing your start-up. There's a great web tool that may come in handy and help you create some buzz. It's called Zentation. It's essentially a free (for the basic service) service that allows you to upload a Power Point presentation and easily sync it with video of you talking about it.

Here's some suggested uses:

• Create a marketing message
• Explain the features and benefits of your product idea
• Pitch your business to investors
• Create a message about your company that's geared toward recruiting
• Train your customers on how to use your product or service
• Etc....

Don't underestimate the power of your pitch!

EVANGELIZE!

When starting your business one of the most important things you can do is to create buzz. Creating buzz starts the minute you decide to start the business. Don't wait until your product is ready or your business plan is written. Start evengelizing NOW!!

My mantra when starting a new business is this: "TALK TO A LOT OF PEOPLE...EVERYDAY."

Here's a good article about creating a pitch for investors: Guy Kawasaki

Here's a great video reference for presenting: Steve Jobs

Here's a useful tool for pitching your business online: VisualCV