The 7 dos and don'ts of Effective Negotiation
Used with permission from the HP Small & Medium Business Center

In this economy, being able to close important deals and negotiate better prices and terms is more essential than ever. But if you're worried that being a good negotiator means having to fight dirty, you're wrong - a negotiation should be an opportunity for give and take that results in a win-win situation for the participants involved. Learning how to negotiate effectively can help you achieve these winning results while strengthening business relationships.

Start improving your negotiation skills with these dos and don'ts:

Don't appear needy.
People can smell desperation. This will weaken your position and allow opponents to get you to make too large a concession or give too deep a discount.

Don't take it personally.
Getting your emotions involved will cloud your ability to make sound arguments and judgments. To keep yourself from losing your cool, think of yourself as a professional deal maker who will not be personally affected by the outcome of the negotiation. Take your emotions out of the equation.

Be prepared to walk away.
Being able to say "no" and mean it ensures you don't end up making a bad deal. Before going into negotiations - and before your emotions and the heat of the moment become part of the mix - set your walk-away point. Then if the terms offered do not match up to your expectations, walk away. This not only strengthens your position, it will also win you some respect.

Don't force it.
By dragging out negotiations that are going nowhere, you're wasting time and causing a lot of frustration. By pressuring your opponents to make an agreement they don't want or can't afford to make, you're creating bad feelings that could lead to mistrust and a wary working relationship. Remember, it's about give and take, and when neither party is willing to budge, the negotiation is over.

Further, like many things in life, it's beneficial to:

Do your research.
Good negotiators come prepared. They find out what their opponent's needs and wants are and what competitors can offer. They anticipate objections so they can counter them with arguments or other concessions.

Practice, practice, practice.
Like anything else, getting good at negotiating requires practice. Develop your confidence by practicing whenever you have the chance, whether it's at a flea market or at home with your family members. Get used to negotiating in your daily life.

Ask for it.
Many people dislike negotiating because they feel embarrassed or scared asking for things they want. But if you don't ask for something, you'll rarely, if ever, get it. In fact, you may be pleasantly surprised by what you can get if you ask for it. If the answer is "no," then you have a starting point for your negotiations.

Those who are good at negotiating usually enjoy it. So don't dread or fear negotiations. See it as a fun exchange, a battle of skills, practice grounds for future negotiations, and more importantly, as a way to build up the client-vendor relationship and win terms, prices and deals that are advantageous for you and your business.