August Innovation Capsule: 5 Factors for Negotiating Your Best Deal

By Julie Jung

Most people have preferred strategies for negotiation. But, you need to have many tools in your tool box to handle different situations. Don’t get fixated on just your preferred method, instead branch out and see the many different options that can lead to a successful deal. People often fall into habits too soon in the process of negotiation, thus a strategic approach is KEY.

5 factors that constitute a “Good Deal”:

1. Economic Success & Rationality

A rational deal, a.k.a. a deal that makes the most “economic sense” is preferred for many business owners.

2. Relational Success

While economic success can be most desirable in many cases, continued relationships with partners, suppliers, and clients may outweigh economic success. Truly attempting to be understanding of the other side and WHY they would find your organization interesting is necessary for understanding the dynamics and benefits of a relationship.

3. Image & Reputation

The image and reputation established primarily before, during, and even after a deal can be directly tied to the likeliness of a negotiation.

4. Creating Stability

Creating stability essentially implies deals that people feel good about. Synergy of communication during the process and the after results create this effect.

5. Maximizing Efficiency

Maximizing efficiency simply means capturing all potential and best deals.

Key takeaway: Don’t fixate on one and ignore the others. It’s crucial to be well-rounded for successful negotiations needed for business growth.

Insights taken from HKEC’s Ignite Startup Workshop: Negotiations for Founders with McCombs Lecturer Dr. Doug Dierking. To see the full recording of this Ignite Startup Workshop, visit this link.

For news and information on future events like this, please visit the HKEC site here.

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Herb Kelleher Entrepreneurship Center

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