Phases of negotiation: learning how to close deals

If communication skills are critical during the process of reaching an agreement and building trust in negotiations is key, it is equally important to know that preparing, exchanging information, negotiating, closing and implementing are the phases of negotiation.

There are no shortcuts in preparing for negotiation, and so such a process must begin with a clear understanding of what steps will be taken.

Are you clear about the stages of negotiation?

Phases of negotiation explained

There is less time to sit down with that partner or client to try to reach an agreement. Before that time, it is necessary to be ready to face a process that will be divided into the following 5 phases of negotiation:

1. Preparation. There are no shortcuts to good preparation. It is the first of all phases of negotiation., The preparation begins with determining whether or not a potential collaborative situation exists, although it is often not guaranteed the time it requires, as it often moves directly to the information exchange stage, or even directly into the negotiation. Preparation begins with the determination of whether or not a potential collaborative situation exists. The conclusion of the analysis will allow the best strategy to be selected. Next, focus on research and identifying interests and positions. Finally, you need to consider the relationship you want to build.
2. Information exchange. This stage takes place when one party begins to engage with the other., The first step is to share information and explore options that address interests, what each needs, rather than positions, what each is requesting later in the negotiation stage. At this stage it is critical to focus on building rapport and trust, without which neither party will feel comfortable sharing interests. One way to build rapport is by discovering and showing interest in the other party's culture, personality, external interests and values.
3. Negotiation. This is the core stage, where «give and take» takes place. But success does not mean winning at the expense of the other side's defeats.. Of all the phases of negotiation, it is at this stage that making concessions is most important.. When you not only aim for so many, but are also able to concede what satisfies the interests of the other party, you can build a long-lasting relationship and a fruitful outcome. During the Negotiation Stage, you should aim to continue to create value.
4. Closure. It is at this point in the process that agreement is reached.. It is important to find out whether the other party has the capacity to deliver on the things they said they would do. This is the time to record common interests in writing and produce a comprehensive summary of the agreement. Sometimes it is necessary to consider strategies that allow securing commitment At the same time, the other side should be thanked for its willingness to negotiate, even when no agreement is reached.
5. Implementation. This is the time for implementation of the agreement. This stage can also be seen as preparation for the next negotiation opportunity. Each party must ensure that it delivers on the promises made to strengthen the relationship and build trust. It should be borne in mind that, during implementation, it is likely that all phases of the negotiation will need to be re-started, with respect to some points due to unexpected events, performance failures or unavoidable changes.

Now that the stages of negotiation have no secrets for you, all that remains is to close the deal and set your sights on the next deal that will improve the competitive position of your business..