Imagine yourself as the owner of a new business and you get an important phone call from a possible business partner. During the conversation he suggests that you two should meet up and work out a negotiation. You know the importance of this business partnership and immediately jump on and set up a date. You set up the meeting and you are extremely excited and nervous. However, you realize you have never had a business meeting in your life and have no idea how to approach it. You ask yourself; what should I wear, how should I approach the negotiation, and how do I make myself look the best I can? These questions are always on the minds of business men when they approach a negotiation. Though, this all depends on what kind of business you’re working with.
Every business must be able to adapt to whatever environment they are in, whether they are a small business or a large corporation. The size of a business can have a major impact on how business negotiations are handled. Of course every business is different than others but most of them will have some similarities when it comes to negotiations. When businesses engage in negotiations with other companies they must approach them very carefully. They must have a set plan for how they will approach conversation and try to reach an agreement. Negotiations are a vital tool for businesses that can open up new windows and allow deals to be struck.
As we look into negotiations we must be able to understand their importance and their ability to change business operations. Negotiations are the greatest tool for business men in today’s business world. It allows presidents and Chief Executive Officers to get a whole new view of a business. In most cases companies would just do some detailed research while looking at a resume given by the company. With negotiations however companies are able to get a better look at how the company works. This can all be seen through the body language, speech, and philosophies of the other owners. This can show how a company actually works instead of what it usually says on paper. It gives a more personal view of the company and an owner can make a decision based on their morals and their feelings of the other owners. This is why negotiations are a vital tool for companies to a company.
Small business’s negotiations can vary widely depending on the company and the owner. They can be very formal or very informal depending on the timing and the place. Small businesses can also be very different because they do not always follow a strict plan when they go into the negotiation. Small business owners also seem to stray away from what most people learn in college. In college we learn to use a power-point and to have a detailed plan of execution before heading into negotiations. However, with smaller companies that are locally based they try to stay away from these guidelines and use what they are comfortable with. Small businesses can be efficient if they know how to handle negotiations.
Large corporations have caught a lot of heat hear recently thanks to the 2008 financial crisis. People now have an idea that a majority of corporations are corrupt and do not have negotiations but rather make deals under the table. This however is not true; in fact they are involved in negotiations almost weekly if not daily. Unlike small businesses, large businesses try to stay with the guidelines that they learned in college. They also are much more formal than smaller businesses when it comes to negotiations. With negotiations being so important for both sizes of companies they must be able to effectively use them to their total advantage. They can do this by doing a variety of different techniques.
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