Negotiate a Business Cooperation
You have been charged with the task to fix the agreement for the Business Cooperation your company wants to set up. How should you approach that task?
Well, it depends on whether it is a one-off, one-time cooperation or a more long-term. If it is a one-off cooperation you can stop reading now.
For a long-term cooperation you are most probably best served by opting for a win-win relationship. This because you want your partner to work together with you towards the common customer. More important than for your company is to work with the right company that shares your common ground for business as a whole.
How do you then secure the agreement for the business cooperation?
Let us look at some key steps
You need to understand what Business Relationship you company wants to establish and how that relationship fits into your company’s Go-To-Market Model. In addition you need to find out what terms & conditions are given for this Relationship.
You may also need to understand any impacts on Trade Compliance as well as Supply & Support Flow.
To learn more about Prepare your company and yourself, follow this link Prepare.
Once you have established your wanted position for the Business Relationship, it is time for you to start to learn about your potential partner. How well do they fit the wanted criteria of a Partner for your Business Relationship? Is it worthwhile to start negotiating an Agreement?
To learn more about how to Explore Candidates, follow this link Explore.
Now it is time to start negotiating the Business Agreement for your Business Cooperation. A good advice is to start by establishing the Common Ground for the Agreement and Cooperation. Walk through the Common Ground, that is the Business Relationship, Go-to Market Model, Expected Terms & Conditions etc. to secure that you do in deed have a common ground.
To learn more about a Common Ground for a Business Cooperation,follow this link Win-Win Relationship.
It is crucial that you in this phase use the skill of being a good listener, that is ask questions to understand and be ready to answer questions on the Common Ground and suggested Ways of Working.
You should be ready to clarify parts where needed.
Note all the parts where you are in agreement and note the parts where you have different views and why.
Now you have come to the part where you can start negotiating the Agreement. You should have a list of parts where you lack an agreement as well as areas where you agree.
You know now what key parts you need to solve for your company as well as any position your potential candidate will have.
The challenge is to create a win-win situation but at the same time not to sacrifice key points for your company.
Hopefully both parties wants to have an agreement and are willing to create the win-win situation for this to happen based upon the common ground for the two companies.
When the negotiation is done, get the agreement signed and celebrate!
You last argument in the negotiation is that you have to walk away since the position of your counterpart violates what your company must have. If you can’t convince them you have no option other than to close the negotiation and walk away.
Negotiating a Business Agreement is a complex task however with a structured approach and good preparations, patience and good listening skills you can succeed in creating the win-win relationship you need for a good Business Cooperation.
- A Collection of Good Posts at Wise Hand Consulting Google+ on the art of Negotiations
- A video on Win-Win Relationship in a Business Cooperation