your guide to negotiation mastery, with some extra tips and tricks

13 Feb

Hi I am Sophie, Mobster, Mum and founder of WrightCFO - Fractional CFO (Chief FInancial Officer) Services for Growing Businesses. Each month I will be sharing my knowledge as a Fractional CFO with The MOB community and today we’re kicking things off by talking about, negotiation!

Let’s be honest, mums are born negotiators.

We haggle over bedtime, screen time, and the last slice of pizza. So, running a business? That’s just taking those finely honed skills to the next level. This isn’t your stuffy boardroom negotiation – we’re talking real-world haggling, the kind you use daily, from suppliers and clients to, well, your kids (because let’s face it, the'y’re the toughest negotiators of all).

You are always negotiating. Think about it:

Suppliers: Getting the best price for your materials is essential – every penny counts!
Landlords: Rent negotiations can free up serious cash for your business (and maybe a cheeky holiday!).
Clients: Agreeing on project scope and fees is a delicate dance, but you've got this.
Employees/Freelancers: Salaries, rates, and project deadlines – all negotiable.
Partners: Joint ventures and collaborations? Negotiation is key.
Investors: Securing funding? Time to bring your A-game.
Even your bank: Loan terms and interest rates? Don't be afraid to ask for a better deal.
Your family: “Just five more minutes of screen time” - We’ve all been there!

So how do I actually do it?

Great question! Here’s your guide to negotiation mastery, with some extra tips and tricks:

Know Your Stuff (and Theirs): Research is your secret weapon. What are the going rates? What are other businesses paying? The more you know, the stronger your position. Also, try to understand the other party’s perspective. What are their priorities? What are their limitations?
Prepare Like a Pro: Don’t just wing it! Think about your ideal outcome, your acceptable outcome, and your walk-away point. What are you willing to budge on? What’s non-negotiable? A plan keeps you focused.
Listen Up! Negotiation isn’t just about talking; it’s about really listening. Pay attention to what the other person is saying (and not saying). You might uncover valuable information.
The Art of the Ask: Don’t be afraid to ask for what you want. The worst they can say is no. Start a little higher than you expect (within reason) and be prepared to compromise.
Find Common Ground: Look for areas of agreement. This builds rapport and makes the other party feel heard. Even small wins can lead to bigger ones.
The Win-Win: Aim for a win-win. It’s not just a cliché; it’s good business. A mutually beneficial agreement is more likely to last.
Know When to Walk Away: Knowing your limits is crucial. If the negotiation isn’t going well and you’re not willing to compromise further, be prepared to walk away. It shows you’re serious.

Ninja Negotiation Moves:

Anchor High (Within Reason): Your first offer sets the stage. Start a little higher (but be realistic!) to make subsequent offers seem more reasonable.
Use the Power of Silence: After making an offer, sometimes the best thing is…nothing. Let them respond. The silence can be powerful.
Bundle Offers: Instead of negotiating each item separately, bundle them together. “I’ll agree to X if you agree to Y and Z”
Trade Concessions: Give and take is key. Be prepared to offer concessions, but get something in return. “I’ll agree to your price if you can deliver it a week earlier.”
Don’t Be Afraid to Say “No” - Sometimes the best deal is no deal. Walking away shows strength.
Use Time to Your Advantage: Deadlines can be powerful. Use them strategically.
Build Rapport: People negotiate better with those they like. A little chit-chat goes a long way.
Focus on Interests, Not Positions: Understand the why behind what they want, not just what they want.
Be Patient: Negotiation takes time. Don't rush it. Document Everything: Get it in writing! Rules of Engagement.
Be Respectful: Even when things get heated, stay respectful.
Be Honest: No lying! It’ll come back to bite you.
Be Prepared to Compromise: You won't always get everything you want.
Know Your Bottom Line: What’s your walk-away point? Stick to it.
Focus on the Relationship: You might need to negotiate with these people again Remember, you’re a mum. You’re a natural negotiator. Embrace it, have fun with it, and go get ‘em!