Negotiating is not one of my favorite parts of working independently and having my own business. As a matter of fact, I never really thought of myself as someone who did all that well with contracts, bookkeeping, accounting and the “hardball” part of business. BUT, since I am a one-gal shop, negotiating contracts and payments is one of the things I have to learn and get better at. The one thing I do know is that the more prepared I am, the more confident I feel and the more successful I am likely to be at the negotiating part.
So, what does it mean to “do one’s homework” when it comes to negotiating? Well, it will depend on what you are negotiating—are you trying to get payment from a customer or client? Trying to get supplies at the best price from a vendor or supplier? Or trying to get a good contract with a client for services you will provide? Have a clear understanding of the goal, as well as what you want and need to accomplish for your best interest.
Next, do some research on the person or company you are negotiating with. Who else are they working with and what sort of agreements and contracts do they currently have? If you know what they are willing and able to do, this inside information will give you some additional leverage as you negotiate for your own interests. It also pays to know what is going on in a market or industry. What is the going rate? What is typical? This way, you will not get duped into an agreement that is not standard.
Finally, there are plenty of books out there that offer lessons and guidance in negotiating skills. It couldn’t hurt to do a little of THAT KIND of homework too. A trip to the library or the book store could yield all sorts of advice on how to advocate for yourself and your business and get to the most advantageous agreement possible.
See Also: Negotiating and Working With Clients and Customers You Never Actually Meet
Three Important Steps in Negotiating for a Flexible Work Arrangement