Monday 17 September 2012

NEGOTIATING YOUR WAY TO POWER





How far can an entrepreneur go without being skilled? You will always negotiate with associates, workers, to win contracts, for peace at home and the workplace. Negotiating a win-win solution for conflicting parties is inevitable. Most meetings and conversations end up with negotiation, without planning for a meeting of such. It is a part of our daily lives.

To negotiate means to bargain, confer and discuss with the aim of reaching an agreement and achieving a fair, mutually beneficial conclusion. Negotiation is successful when both parties win; a win-win consensus.

Negotiation skill is an important interpersonal skill. Research reveals that as people go higher on the corporate ladder, they need more interpersonal skills than technical skills. During my interpersonal skills training, participants suddenly begin to realize that by increasing their negotiation skills, they can make more money, influence people, and achieve their wildest dreams. Contrary to mainstream thinking, effective day-to-day negotiation is not about ploys and gambits; it is about sound interpersonal skills. A ploy is a trick and gambit is a cunning sacrifice made with the intention of significantly greater gain.

Successful entrepreneurs know that negotiation is not a tug of war. It is about getting what you want and helping the other party to get what he/she wants. Imagine you just yanked the door ajar, and walked straight inside a sophisticated office. You were told to take a sit at a meeting with top executives. Of course, you want to win the contract, the job, or sell an idea. You can't afford to lose!
When you find yourself in this kind of situation, you have to play your cards well, utilizing sound principles of negotiation.
Let’s look at what you have to do before you get to the negotiation table.

Preparation
Gather information and do a thorough research before you get to the negotiation table. Get facts and figures. Research the organization's history, values, previous dealings, and the organization's culture. Becoming knowledgeable on the subject-matter before hand will increase your bargaining power when negotiating.

If you are trying to resolve conflict at home or in the workplace, gather information from both parties to know the cause of the disagreement.

A fraction of your preparation time should be dedicated to your grooming.

Check your wardrobe, and search for an outfit that befits the occasion...dress for the occasion. We are judged by our appearance. People see you, before they hear you. My mentor used to tell me that looking good is good business.

Good preparation entails rehearsing your speech. This is not far-fetched. Before you get to the negotiation venue, you should have an outline of your key points, which you have rehearsed. If you will be addressing a group of people, then you really have to spend time on rehearsing your speech, which is easier when you have a good understanding of your subject matter.

Furthermore, you have to focus on your inner dialogue. Often times, when we are scared of something, our inner dialogue is negative, brought about by fear. One way of conquering fear is by changing your inner dialogue from a negative one to a positive one. Go with the mind-set that you will win because you are prepared.

Developing a strategy is part of your preparation. Ask yourself the following questions.
Is my proposal/request different from others? How can I present an offer that is too good to be resisted or rejected?

What is my Unique Selling Proposition?

What are my strengths and weaknesses?

When you ask yourself the right questions, you get the right answers. Anticipate possible questions, and be prepared for answers to them.

Now you are ready to swim with the sharks!

Effective negotiation borders on three key factors: Authority, Attitude, and Assertiveness.

Organizations want to work with experts, not a novice. Every time the corporate shark knows that you are an expert in the subject matter, your bargaining power increases. One way to show that you are an expert during negotiation is to seize initiative in areas of undoubted competence, and ensure the other person depends on you for clarification and information. Those are your strength zones.

A reputation for unpredictability will also go a long way in increasing your bargaining power. The other party will be conscious of what he/she tells you for the fear that he/she cannot predict your reaction. Ask the other party unexpected questions that matter.

Being an expert, you should set the pace. As people say, attack is the best defence. It could be in comparison to playing the Chess game. You want to use the white piece, not the black one. You make the first move.

In setting the pace, be the first person to mention money (or whatever is the dominant item to be negotiated. Before you do that, you should know what your competitors charge, and what the organization may be willing to pay.

As a pace-setter, you have to open with strength. It is during the first few seconds of a negotiation that each party forms their impression of what the final agreement will be. Get the attention of the other party in thirty seconds or less. Don't beat about the bush. If you do, you are giving the other party the impression that you don't know what you want. When you don't know what you want, you can take anything.

Furthermore, you have to set goals for yourself: Both short term and long term goals. 


Before you get to the negotiation venue, you have to determine your fall back position. Determine your Banta. During negotiation, start high, and if necessary, gradually, come closer to your fall back position and don't go below it.

Instead of going below your fall back position, you can decide on what you will do voluntarily for free. That doesn't make you cheap. Rather, it is a way of giving the organisation a taste of your offering, thereby, fostering a business relationship with them. That's the equivalent of sacrificing a Pawn. It's a simple Chess logic.

Once you have established your authority on the subject matter, the other party will treat you with respect.

Some ploys and gambits used by aggressive negotiators are: keeping you waiting, the best offer, and last minute wavering, so, watch out for them.

Keeping you waiting is a tactic senior people use on junior people. It is a way of saying: I am a decision maker here, so you have to dance to my tunes. Other manipulators can use it to disorganize you or make you nervous, so you can concede quickly. An effective counter measure is, to read a book while you wait.

After waiting, the boss, emerges and asks you-what your best offer is? If you've been overly nervous, you will be pushed straight to your fall back point.  Side-stepping the request and signaling that you need information is a good counter measure. Don't forget to start high.

Imagine that after reaching an agreement, the other party tells you that he/she is not the decision maker, that his/her boss has the final say. The new boss comes over and begins wavering over some seemingly trivial points.

Your defence is to remember that every time they raise a new issue, points that have been previously agreed on can be brought back for discussions. Stay positive and stand on your rights, while acknowledging the rights of the other person.

I would love to hear your views on this article and i hope you benefitted from this piece

                                                                                                                                                                                           SADIQ DANIEL

Thursday 13 September 2012

‘WASHING’- Selling yourself in a crowded market



I’m going to give you some ideas on how you can scream and make yourself heard even in an over-crowded market. Most “solopreneurs” (a coined word signifying one-man entrepreneurs) are selling something, an idea, a product, a service but then most entrepreneurs never quite get beyond the point of selling, and move into marketing on a much bigger scale. They keep on trucking to make small sales, and get by day to day. Some keep waiting and hoping for the big time job or contract which sometimes proves elusive and finally outlasts their patience and persistence possessed by small entrepreneurs.

It’s a crowded market with multinationals that have enormous marketing budgets, solopreneurs - with little startup capital, organizations with hugely successful brands, and thriving entrepreneurs with seemingly bottomless pool of funds for PR. How does a ‘solopreneur’ successfully sell himself in a ‘dog eat dog’ business world where everyone’s fighting for every bit of the customer’s money?

We are going to point out some ways a solopreneur can stand out and make a difference. From experience I have learnt the following lessons

3 Key Lessons

·          The customer’s perception of you is at least as important as who you are - always consider your personal image (haircut, business suit, shoes)

·          Most people still and often will judge a book by its cover - includes your paper image (letterheads, business cards, brochures, and website)

·          Always consider the eye of the beholder and you can fool some of the people some of the time (appear the image of success)



Among youths in Nigeria there is a slang or slogan called ‘washing’- there’s a thin line and slight difference between this phrase, and what in business world is often called branding. The meaning in layman’s term implies creating an intrinsic emotional connection or perceived image on someone about a certain business or product. In the business world a brand may very well mean everything. It’s the differentiation between a software program that can be sold for millions of Naira to a bank by a multinational corporation, and another with the same functionalities that a startup solopreneur will find difficult selling for a couple of thousands of Naira to the same bank, irrespective of the fact that both software programs are identical. When such incident occurs as they very often do, you can say that the bank has been ‘washed’ by the big corporation.

How does a solopreneur successfully ‘wash’ or brand his/her self in today’s competitive market? Consider the following case study as a guide



Case Study

Ruth decided that her event management company didn’t stand out in anyway from the competition, and very well didn’t stand the chance of ever growing from a micro enterprise into a small or medium size enterprise.



Strategy

Ruth decided to move from word of mouth referrals, and personal selling; she took a leap into the web and used up most of her savings to advertise on social networks online, such as FaceBook, Hi5 and the likes.





Outcome

Two months after launching her business on the web complete with referrals, testimonials and pictures of her previous events, she was overwhelmed with phone calls from potential clients from across the country requesting her services.



Lessons

Consider re-evaluating your business. Most times, solopreneurs tend to become bugged down by the tedious nature of their day to day activities that they remain focused on fishing in a small pond while there’s an ocean waiting to be explored.  Ask yourself before considering the internet as a viable marketing alternative - Do you have the resources to pursue this strategy? What is the impact of your strategy on your kind of business? Would you be better off going into an internet only operation? Can you make yourself seem larger than life by the web content displayed on your website? How do you get clients to visit your website?



The internet represents a cheaper and often more viable means of advertising yourself. While big corporations have the budget to consider advertising on national dailies, television and billboards, a start up business or solopreneur is often left behind. The internet is and still remains an effective and cost-efficient strategy of being able to create an outlook and perceived value in the minds of clients about a business. Most often what they see when visiting your website determines what impression they have about your services without ever meeting you in person.



Alternative ways of making your business stand out especially when selling services (often less expensive strategy than selling products), may include getting trend-setters, industry leaders, or local celebrities to use your products free of charge. You can then leverage on this goodwill by asking for testimonials and subsequently mentioning such often high sounding names during sales presentations, and adding them on your list of clients on your website or business proposal when bidding for a job. This could be all the ‘washing’ you need to position yourself as being already successful and you may end up  fooling some of the people some of the time. Look out for this section next month for more innovative ideas on achieving your business targets.

Source: The street Hawker

Monday 3 September 2012

THE MILLION DOLLAR QUESTION


“The dude is stinking rich; he just got himself a Rolls Royce of 45million naira” Bimbo argued with his colleagues as I passed by. Oh! Who got himself a Rolls Royce? I asked. Initially I never intended joining in the conversation as I was in a rush to get myself what to eat, but two words caught my attention; Rolls Royce and 45million naira. More than two words I guess.

When my friend Jimi heard about the Rolls Royce and the money, he told me something that left me hanging. What could he have said? He said he would make sure he gets rich by all means. Good dream, but what would he do to get the financial freedom he desires? I asked myself.

I guess I got myself three questions that require answers but which one of them is the million dollar question?

We have so many ‘Jimi’ out there; you just have to trust me when I say this. I have attended a lot of seminars ranging from wealth creation to leadership and I have seen frustrated and desperate guys, as in messed up guys. One thing I have discovered overtime is that they don’t really know what financial freedom really means. Having a lot of money is not financial freedom, you might have a lot of money and still work for it but when you get money to work for you, then you are financially free.


Another thing I noticed is that many people want to be successful in life but some are afraid to do what it takes while others want to start big; they have this ‘big money-big profits’ mentality. We have heard it countless times to start small and think big. If you can’t handle the little cash you have now what makes you sure you won’t do likewise when you have something bigger?

“He who fails to plan, plans to fail” is a cliché that is still valid but if you plan and you don’t take a single step, you are heading for the opposite of success big time.

Action is the fuel of success. You already possess the raw material necessary to produce success. Your dream is the seed and your ability to take action is the nourishment needed to cause your seed to bear fruit, although activity does not always equal productivity.

Action is the food and drink, which will nourish your success. Your life is filled of unlimited possibilities; if you focus your activities on cultivating success, success will flourish. If you want to succeed in any area of your life, you must nourish that area daily through your actions.

Investors would never invest in your idea no matter how big and convincing it might be until you have actually done something with it.

Think big and start with what you have. Nourish that idea daily. The bounty of success is within your grasp, you need only to reach out and take it. Don’t be one of those people that busy themselves with activity in order to keep their minds off the unfulfilling aspects of their lives. Take time daily to develop yourself.

I guess I have answered all questions. Oh! I forgot to tell you who bought the Rolls Royce. Hmm! who was it again? Check it out at http://lindaikeji.blogspot.com
I would be happy to read your comments and answer all questions you might have.
                                                                                        
                                                                                                      Sadiq Daniel