1. Negotiation

2. Here are my five tips to a successful negotiation
Know your numbers
Know your enemy
Bring the spirit of negotiation
Tease the information
Relationship succession

3. 1. Know your numbers Before entering the room, write down five things:
Your opening offer (highest number you can realistically say) – if you’re unrealistic they’ll not take you seriously but if you’re too low they’ll have room to push you down.
A figure you’d be very happy with.
The figure you think you’ll realistically get – what you consider the fair price.
A figure you’d accept but lower than you want.
Your walk away price. You MUST walk away at this price.
Knowing your numbers will increase confidence and help you focus on the conversation rather than trying to do sums in your heads or thinking through consequences – you’ll already have thought this through. Make sure these numbers are accessible to you but hidden from view (e.g. back of your notebook.)

4. 2. Know your enemy Understand who you’re negotiating with:
You should only ever negotiate with the decision maker. If the decision maker is not planned on being in the room then postpone.
Do your homework on who will be in the room. What is their experience and technical skills? Are they analytical or big picture?
Once you know, be prepared to flex your style and speak in a way which they will understand. Use numbers for the analytical type or use visionary language for a big picture type. You may need to adapt this in the room if you discover their personality type while you’re there.
Try to research their agenda, are they struggling financially or are they planning for big growth? This will help you know your negotiation leverage.

5. 3. Bring the spirit of negotiation
Negotiation should build bridges not start wars!
Strive for a win-win scenario and do so for two reasons:
You’ll both walk away with more if you have a win-win solution than a lose-lose.
Chances are even if you win and they lose, you’ll need to work with them again in the future and they’ll remember how they were treated.
If the negotiation involves a supplier or something similar, what you win in cost saving you may lose in quality.
In planning for a win-win, know what you’re prepared to leave on the table for them.

6. 4. Opening rules Take the lead in opening the conversation:
Set the tone – friendly, open, win-win solution.
Start with understanding their needs – don’t jump to numbers or the heart of the negotiation.
Don’t assume you know what’s important to them – ask (and remember, the answers are your leverage).
Try to get them to open with an offer – this can be difficult but if you’re leading the conversation, it means you can ask first. The reason is, that you’re opening offer could be below their one for all you know!
Don’t give away what you don’t want too easily. Just because you don’t want it and you know they do, doesn’t mean you should throw it in for free, put it aside as bargaining chip.

7. 5. Relationship succession
Aim to leave the room with a new business relationship:
As mentioned under ‘Bring the spirit of negotiation’, chances are you’ll need to work with them again in the future, so be engaging, be fair and be friendly.
Confirm what you’ve agreed and confirm next steps. Send it in writing immediately after.
Capture any qualitative information that came out during the negotiation that may be of use later e.g. growth ambition, challenges etc.
Deliver on your commitments in full and on time.

8. Important notice: This document is intended (1) to serve as starting point only and should be tailored to meet your specific legal and commercial requirements; and (2) must not be relied on as legal advice and no liability is accepted for such reliance and that anyone needing legal advice should consult a solicitor or other authorised person.  Readers are encouraged to submit feedback to so that the document can be updated and improved.