Business Strategies – Part One

David Eghbali Business Strategies and Negotiations – Part One

The goal of this article is to give you a structure of negotiating so that you can be successful regardless of your previous business training. I've learned quite a bit from David Eghbali and think his emphasis on clarity should be the main focus during any negotiation. He teaches that you need to get clear on precisely what you're trying to achieve during your negotiation process.

Collaboration is the key
David Eghbali cautions that although people go into a negotiation knowing exactly what they want, people often shy away from adversarial negotiations because they don't want people to think of them as too demanding or greedy.

It's far more productive to think of your negotiations as collaborative problem solving. Financial expert David Eghbali teaches that when you're in the frontlines of a negotiation, you're first looking to solve people's problems. That's why David Eghbali emphasizes using his negotiating skills to give people some of what they want while also securing some benefits that he wants to secure.

What are we really aiming for when we negotiate?
#GoodDeal     
Although most people think that the goal of negotiation is to get an agreement or a deal, this mindset is a bit shortsighted. As David Eghbali preaches, the goal of negotiation is not just to get any deal, but to actually push for a good deal. I try to elicit my alternatives during a negotiation in case we can't reach an agreement. If my alternative is a fairly decent option, this gives me more leverage to push for a better deal.

I should always know my reservation price.
#ReservationPrice
The reservation price is the price point at which I am indifferent to agreeing to terms and opting for my best alternative. Once I started negotiating with my reservation price in mind, I could more clearly see what it would take to budge me towards accepting their offer. I always go into a negotiation situation prepared with my reservation price. David Eghbali regularly uses a great strategy of moving points in his favor when negotiators are indifferent to the outcomes. That’s what makes David an excellent business negotiator.

Competitive versus collaborative negotiating styles.
#Competitive&Collaborative
There are basically two different negotiation styles out there: competitive and cooperative. People who are too competitive end up being labeled as people who are only concerned about themselves. David Eghbali regularly teaches a cooperative negotiation strategy that takes into consideration whatever concerns are coming from the other side the table. I take what the other side is telling me and attempt to bring their concerns together with my concerns.

If I'm too competitive, that can intimidate some people and lead them to adopt an avoidance negotiating strategy. An avoidance negotiating strategy basically leaves the counterparty hanging. Although David Eghbali doesn't emphasize this negotiation technique, he still thinks it's an important tool to have in your negotiating arsenal. You can force better counteroffers by seeming like you're not really interested in what the other party is bringing to the table.

A collaborative win-win negotiation strategy features a high level of cooperation. David Eghbali always harps on the fact that you can set yourself up to be taken advantage of if you're collaborative while your counter negotiator is competitive. I only use a collaboration negotiating style if I'm certain that the other party is also collaboratively negotiating. These are the negotiations I like best as both sides walk away getting what they want.

Try to emphasize a win-win partnership.
#WinWin
Win-win is not only a hallmark of David Eghbali and his negotiating style, it's also an important enough tenant that magazine's like Entrepreneur make it an emphasis within their negotiation guide. Win-win means taking into account the best possible outcome for my counterparty. Implicit with this stance is the ability to focus on nonmonetary benefits that the person I'm negotiating with might value. And what's good for my negotiating partner is also good for me. I want them to be aware of any nonmonetary benefits that I might have so that they can better meet them. I might relent on price if they can add sweeteners to the deal that will improve my overall quality of life.

Know your preferences, but learn those of my counterparty.
#KnowYourPreferences
David Eghbali points out that a person needs to understand what their primary interests are in any negotiation. I always try to keep in mind what's achievable in a particular negotiation. But I also keep in mind the preferences and interests of my counterparts across the table. They are not going to give me what I want until I give them something that they want.