This archive report was first published on 6 July 2021.
As an entrepreneur, you're constantly negotiating with clients, partners, and suppliers. But are you making mistakes that can cost you big? Research shows that small talk in negotiations can help both sides get a better deal. A 2015 study by America's Kogod School of Business found that small talk builds social capital and increases the perception of cooperativeness and likeability of a negotiator.
Before negotiations start, take time to engage in small talk with your counterpart. This can help you build rapport and create a positive atmosphere for the negotiation. Even when negotiating over email or phone, it's a good idea to call the other party beforehand and introduce yourself.
Another common mistake is not mastering a poker face. Negotiations can be frustrating, but it's essential to remain calm and composed. Avoid showing your emotions, and resist the urge to jump up in joy when the other side makes a concession.
Active listening is also crucial in negotiations. Don't be the type of negotiator who never stops talking and doesn't have time to listen. Instead, listen carefully to the other side's points, paraphrase their main points, and echo their own words to them.
Finally, be willing to walk away from a deal if it's not in your best interests. Don't burn your fingers on a bad deal, as this can lead to regret and losses for your company.
By avoiding these common mistakes, you can improve your negotiation skills and achieve better outcomes for your business.
