I like to think of an entrepreneur as someone who creates opportunity for themselves. They are adept at creating something out of nothing and aren’t afraid of taking risks. I feel that the founder of a lifestyle business should be considered an entrepreneur just as well as the owner of multiple franchises and just as well as the founder of an innovative tech startup. They are all entrepreneurs because they are creating value for themselves.
In my organizational behavior class, I’m currently studying how to get a favorable outcome while negotiating. Here are some tips.
1. Know What You Want
In order to be prepared, you should know what your target value is and either your lower or upper limit.
2. Know What You Can Get
In order to make an informed decision, you must know what you can get if go elsewhere. Once you know what you can get elsewhere, then you are prepared to walk away if necessary.
3. Be Aware of Time
You can use time to your favor. For example, if time is running out, you have a good chance of your opponent making concessions. Also, the longer you’ve been negotiating, the more the other party has “invested” in the negotiation, and may make concessions in this way as well.
4. Tread Carefully With Your First Offer
If your first offer is too high, your opponent may swing wildly in the low direction. If your first offer is too low, your opponent may refuse to continue negotiations.
5. Make Concessions
Concessions are seen as an act of good faith in a negotiation. The more you make, the more good faith you will build. So make small concessions, but make them often.