Why this is important
Making deals is fundamental to all parts of any business. You will need to do this if you want to:
- expand your business or take your business in new directions ;
- work with new people, partners or organisations;
- get more business; or
- get the best deal from suppliers.
Who might do this
You might do this if you need to:
- arrange for supplies, premises or finance whilst setting up a new business or social enterprise;
- make agreements for new service or product delivery to develop your business or social enterprise; or
- negotiate with suppliers or customers when changing or adapting the products or services your provide.
What it involves
Make deals to take your business forward involves:
- knowing what you want to achieve and what parameters you hope to achieve it in;
- understanding other people’s perspectives and what they are trying to achieve;
- negotiating calmly and effectively;
- keeping an eye on how the outcome of the deal will affect your business at each stage of negotiations;
- understanding how the outcome will affect the other person and how far you can push them;
- finding innovative solutions when you need to give ground;
- projecting a personal commitment and business capacity to deliver; and
- signing off deals so they are clear to all parties.
Other units that link closely with this
|WB5||Sell your products or services|
|WB9||Bid for work for your business|
|BL3||Contract for a business premises|
|MN7||Get finance for your business|
|BD6||Make changes to improve your business|
|OP4||Sub-contract work for your business|
What you need to do
- Make sure your potential deal will support your long-term goals and vision for your business.
- Decide what you want to achieve from a potential deal and how much variation you can accept in the outcome.
- Identify the risks involved and how you will combat them.
- Find out what the other person or organisation hopes to gain from making a deal with you.
- Clearly explain the features of the deal you want to make and the benefits to the other person or organisation.
- Think whether there is anything you can negotiate on other than price.
- Negotiate your deal calmly and effectively.
- Behave ethically throughout negotiations.
- Be aware of the affects on your business and the other person or organisation if the outcome of the deal changes.
- Find innovative solutions when you need to give ground.
- Project a personal commitment and business capacity to deliver on the deal.
- Sign off deals so they are clear to all parties.
What you need to know and understand
- The long-term goals of your business and how each deal will affect them.
- How changes in outcome will affect your business.
- What your own costs to deliver the deal will be, including your margins and break-even point.
- The other person or organisation’s perspective, what they are trying to achieve and how you can add value to their future.
- Why it is important to remain aware of the effects of the deal on the other person or their organisation and how to do so.
- When to stop negotiating so you don’t jeopardize the deal.
- How your behaviour will come across to the other person or organisation.
- How to listen to what the other person is really saying.
- How to build rapport, empathy and long-lasting relationships.
- How behaving ethically will make people want to deal with you in the future.
- What you can negotiate on other than price (for example delivery costs and times, product and service specification, service level and extras).
- Why it can be easier to negotiate on things other than the bottom line.
- Why it is important not to get emotional or personal about a deal.
- How to recalculate and present an offer in a different way to meet developments whilst making a deal.
- How to close a deal.
- How to record the outcome of the deal so it is clear to all parties and legally sound.