Closing the Deal When Negotiating

One of the most powerful tools for winning a negotiation is the ability to walk away from the table without the deal. As Harvey Mackay wrote in "Swim With The Sharks Without Being Eaten Alive," "Whether it's a labor negotiation, an acquisition, or a real-estate deal, don't deceive yourself into believing that just because it's negotiable it has to be negotiated." Deals seldom get worse when you walk away, so be prepared to walk and mean it. If you go back, it will be for better terms.

That is what this article is about, that moment when it all comes together and you close the deal. It is at this time that both parties have won. A good deal is one that is fair under all circumstances when it is made. A good deal, a win-win deal, is workable. This is very subjective, since each party must decide what a "win" is for them. Each party must assess if the deal is good or bad, and if both parties determine the deal is good, you will have a win-win situation and move toward closing. Win-win does not mean giving in, lowering your standards, or subordinating your goals. In simple negotiations, such as buying a car, win-win is finding the price that works for each of you. In more complicated negotiations, creativity sometimes must be called upon to find a win-win solution. The challenge is to find out what serves both sides, and this is not always easy. The great negotiator will think outside the box and come up with creative solutions to make the deal. Emphasize what both parties are gaining, not what they are losing, and look for the fair deal where both parties win. No, it is not always easy, but that is why those that can reach those solutions are rewarded accordingly.

Once both parties agree on enough terms to move forward with performance, the deal closes. For some, this can be as simple as saying you will do something for a certain price and shaking on it. For others, the deal is not closed until everything is committed to writing, and both parties have signed the agreement.

Oral agreements are generally enforceable, however, the law does require certain contracts be in writing. While contracts do not generally have to be in writing, problems are more likely to occur with oral agreements when disputes arise. With oral agreements, all you have are the parties' memories, and you can bet your future life earnings those memories will differ greatly. Therefore, get it in writing and you will be better protected from potential disputes later. If it is an important matter, you will want to draft a contract that attempts to anticipate every possible scenario. It should set out each party's rights, duties, obligations, and remedies if the contract should be broken. There are many portions of a contract, and you are strongly advised to seek the assistance of a competent attorney to assist you with all contract matters.

Once the negotiation is over, contract signed, and celebrating finished, review the process. Think of the negotiation and consider what could have been done differently, and what consequences may have occurred. This is a great way to improve your negotiation skills and build upon them for next time. In addition, ensure every agreement you enter is carried out in an ethical, timely, and honest manner. Do not forget that your word is your bond. Break it, and word will get around, and no one will negotiate with you in the future.

Alain Burrese, J.D. is a performance and personal development expert who teaches how to live, take action, and get things done through the Warrior's Edge. Alain combines his military, martial art, and Asian experiences with his business, law, and conflict resolution education into a powerful way of living with balance, honor, and integrity. He teaches how to use the Warrior's Edge to Take Action and Achieve Remarkable Results. Alain is the author of Hard-Won Wisdom From The School Of Hard Knocks, the DVDs Hapkido Hoshinsul, Streetfighting Essentials, Hapkido Cane, the Lock On Joint Locking series, and numerous articles and reviews. You can read more articles and reviews and see clips of his DVDs as well as much more at http://www.burrese.com and http://www.aikiproductions.com.