When entrepreneurs work on their products, they often have to contract with other companies to produce their items and keep their customers happy. Zhi Ko is involved in the video game and cryptocurrency sectors, including Noble 5, Radiance, and Coindust. He has negotiated dozens of deals in his business ventures and has four guidelines to help you agree on a perfect deal in your entrepreneurial ventures.
Do your research
Before you approach another company with a deal, make sure you’ve done research into their industry and know what’s reasonable. Talk to other companies, look at previous deals online, and check to see what competitors are up to. You need to know what value your product has to the other person and vice versa. “I’ve received lowball offers before, and they’re insulting,” Ko says. “Get the best value you can, but don’t make people feel like you’re trying to take advantage of them.”
Be comfortable with silence
Some of the best deals come simply by shutting your mouth. “Some people are uncomfortable when silence falls over the room. You can use this to your advantage by refusing to go down on your offer during this time. Let them think about things.” This is a common negotiation tactic that can help you out a lot.
Don’t take business propositions personally
Business is business, and you shouldn’t feel like you’re being rejected as a person if a company or entrepreneur doesn’t want to work with you. “I’ve been turned down by friends and colleagues before. You have to have thick skin to be an entrepreneur.” Remember – they’re merely making a business decision, and it doesn’t say anything about the quality of your work or you as a person.
Be willing to walk away
This is crucial for any negotiation, although it can often be the hardest part. “Before you get into the room, determine the absolute highest price or deal you’re willing to go with. If you can’t settle for something below that, you should find someone else to do your job.” Additionally, saying that you’ll walk away might make the other company change their mind and get closer to your desired number.
Negotiating is tricky and takes lots of practice. Take the tips above into account, and you’ll be on the right path to creating the perfect deal.