And How To Strengthen Your Negotiation Skills
By Casey Neal, Business Development Specialist
As a business owner, you’re likely negotiating something every single day. Whether you’re discussing vendor pricing, securing better terms on materials, navigating client contracts, or retaining key team members, these conversations shape your bottom line.
Far too often, business owners enter these negotiations from a place of urgency rather than control. They’re reacting to challenges rather than directing outcomes. This reactive approach costs more than just dollars; it can drain your time, erode margins, and damage long-term relationships.
It’s not just about losing a deal. When negotiations go poorly, it can damage trust, weaken future opportunities, and sometimes create reputational risks with suppliers or partners. That’s why being proactive instead of reactive is so critical.
The good news is that negotiation doesn’t have to feel like a scramble. With the right mindset and a few core strategies, you can approach every conversation with confidence and clarity.
Why do many business owners struggle when it’s time to negotiate?
Even the most capable leaders can fall short in negotiations. The issue isn’t typically confidence; it’s how the conversation is approached.
Many owners assume negotiation means asserting dominance or refusing to compromise. That belief often leads to one of two extremes: conceding too quickly or digging in too hard. Neither leads to sustainable success.
What’s needed is a smarter, more strategic framework for negotiation; one rooted in preparation, mutual value, and professional presence.
What if negotiation isn’t about winning or losing?
Negotiation isn’t a battle. It’s a tool for alignment.
Picture every negotiation like steering a boat. You’re not trying to sink the other party; you’re guiding both sides toward a shared destination. The clearer your objective, the easier it becomes to collaborate and find solutions.
This shift in mindset changes everything. Rather than positioning yourself against someone, you’re working with them. That’s how real business gets done.
One business owner I worked with used to approach every vendor meeting like a battle. Once they shifted toward finding common goals, they started getting better service, longer-term rates, and fewer surprises in the fine print.
Are these common negotiation mistakes holding you back?
Business owners often fall into predictable traps during negotiations:
- Entering discussions without a defined goal
- Focusing solely on price instead of long-term value
- Making rigid demands rather than asking thoughtful questions
- Relying on a single point of contact when multiple stakeholders are involved
Even one of these mistakes can delay outcomes or diminish value. Addressing them opens the door to faster deals and stronger partnerships.
These mistakes don’t mean you’re doing anything wrong on purpose. Most owners are simply wearing too many hats to slow down and strategize. That’s where a strong process can change everything.
Can questions really shift the dynamic? Absolutely.
Strong negotiators don’t lead with demands. They lead with curiosity. Instead of opening with, “Can you reduce the cost?”, ask:
- What would a successful outcome look like for you?
- Are there concerns we can address together before moving forward?
- What would a long-term collaboration need to include?
These questions signal professionalism and partnership. They uncover the other side’s priorities, surface potential objections, and build trust. Use this approach with clients, vendors, and internal teams alike.
Are your business relationships deep enough to support strong negotiation?
Many owners rely too heavily on one person within a vendor or client company. That creates vulnerability. If that person leaves or shifts roles, you may lose your leverage, or even the deal entirely.
It’s better to build what’s called a ‘thick relationship.’ Connect with multiple people across departments. The broader your network within an organization, the more stable and productive the partnership becomes.
Which operational problems can negotiation solve?
Strategic negotiation isn’t just about cost savings. It has ripple effects across your business. You may not realize just how many daily challenges stem from unclear or imbalanced agreements. Strategic negotiation helps you clarify roles, expectations, and values before small issues become operational headaches.
- Control costs by identifying value levers, not just pricing
- Retain top talent through honest, forward-looking compensation conversations
- Accelerate your sales cycle by addressing objections early
- Create clear vendor and client agreements to minimize confusion
- Reduce stress by proactively guiding outcomes instead of reacting to problems
Negotiation touches every part of your operation. It’s not just a task; it’s a skill set worth developing.
What can you do right now to improve how you negotiate?
Here’s where to begin:
- Identify your top three upcoming negotiation opportunities: vendor meetings, employee reviews, or client contracts.
- Draft one open-ended question for each conversation. Focus on alignment, not just terms.
- Pinpoint one relationship in your business that feels too shallow. Plan to strengthen it before you need it.
You don’t need to wait for a crisis to sharpen your negotiation skills. A proactive approach builds stronger deals, healthier margins, and lasting business growth. The most successful owners treat negotiation not as a skill you’re born with, but one you build. Like anything else, it gets better with practice, intention, and a clear framework.
“Let us never negotiate out of fear. But let us never fear to negotiate.”
John F. Kennedy
Reference: Carter, A. (2024). How to ask for more—and get it. TEDxReno Talk
