How to Do a Smart Business Deal

There have been so many books written on how to do "deals." Old-school business people, like Donald Trump, have made it appear that deals only get done if you are cut throat, merciless and ruthless. I disagree and believe that there is still such a thing as a "win-win deal".

Difficulty: Easy

Instructions

Things You'll Need:

• Brains
• Patience
• Business sense
• Understanding of both sides of the transaction

1. Understand all the facts on both sides of the table. You need to be an expert in the entire business, not just "up to speed" on a few aspects of the business.

2. Determine what you want from the relationship, partnership or transaction. To get a deal done, you need to know what you want from the deal AND what the other side wants to achieve.

3. Leave your emotions and ego at the door. Both sides are looking to get the best deal they can and do NOT take it personally if they push hard on certain points. Relax and remind yourself that this is business and when you go home, none of it matters.

4. Focus on getting the 6-12 points that are critical to you. You should know which points are important to the other side so you can trade those points for the elements you need.

5. Never change the deal unless there is a solid legitimate justification for doing so -- for instance, the other side told you facts that they had not disclosed in previous negotiations.

Tips & Warnings

• Never get emotional unless you are doing so to impact the negotiations and really are in control.
• Don't take it personally.
• Stay true to whatever deal you originally offered and only "tweak it" if circumstances change.
• Never say that point is a "deal breaker" unless you are 100% sure you are ready to walk.

[presnick]

on 5/29/2008 I'm going to put this into action. Thanks!

[Preeti]

on 6/11/2007 I like the part about not taking things personally and when you go home it doesn't matter. That's a great approach and seems to be working well.