You’ve negotiated before.
Vendors, employment offers, client agreements.
Now, you’re working on your exit strategy.
The process may feel familiar, but the stakes are different.
Everything you’ve worked for is on the line.
Here are the top mistakes people make when negotiating, and what you can do to advocate for your business.
Mistake #1: Assuming Past Experience Always Translates to New Negotiations
Business owners are great problem-solvers.
Running a successful business will force you to sharpen your skills and wear many different hats.
However, it is a mistake to assume that general business experience is automatically relevant to high-stakes strategic negotiations.
Negotiating strategic agreements is not the same as:
- Vendor pricing
- Hiring staff
- Client agreements
When owners assume that this experience will be enough, they start unprepared and at a disadvantage.
Effective negotiators listen attentively, ask questions, and focus on shared wins rather than positional bargaining.
Mistake #2: Letting Emotion Drive the Conversation
One of the most common errors is allowing personal feelings or defensiveness to take the lead.
When emotions drive the conversation, logic and strategy go out the window.
The person who manages their emotions well and understands their counterpart is often the one who:
- Keeps clarity in high-pressure moments
- Reconnects the conversation to facts
- Avoids reactively giving more than they need
Negotiation goes beyond numbers on a page and sharing data.
Knowing how to read people and build rapport are key skills that will improve the likelihood of negotiation outcomes in your favor.
Mistake #3: Focusing Only on Financial Gain
Great negotiation designs outcomes, not just dollar amounts.
Oftentimes, parties will focus too much on money, which can result in very restrictive terms, longer negotiations, and unclear expectations.
The best negotiators consider:
- What happens after
- Timelines
- Accountability
- Flexibility
- Long-term relationship/partnership
This comprehensive approach is typically much more rewarding to both parties than attempting to satisfy rigid price demands.
How To Be a Skillful Negotiator
Avoid common traps and create a good partnership by preparing!
Successful negotiation starts long before meeting at the table.
It starts with research.
Strategic preparation and understanding both sides’ needs are essential parts of an effective negotiation strategy.
To become a skillful advocate for your business, model these behaviors:
- Prepare the details: Gather the facts, clarify priorities, and research the party you are working with. Know exactly what you must have and what you can give up.
- Ask questions: Try to understand where your counterpart is coming from and where they want to go. Understanding how your goals differ from your counterpart’s is a key part of success.
- Pay attention: Listen closely to the discussions; they will reveal exactly what the other party values, fears, and needs, providing you with a clear roadmap for how to proceed.
- Keep your cool: Avoid fights and strong reactions; focus on the fact that this is a collaboration.
Plan Your Strategy Before Your Next Big Deal
High-stakes negotiations aren’t “won” on instinct alone.
You need guidance and preparation to negotiate your exit agreement.
Before you make your next big deal, let’s talk strategy.
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