Negotiating like a shark part two
13
Negotiating like a Shark Part 2 By: Jeff Hopkins Owner at BlogSharkTank.com Season 5 Issue 4 Blog Shark Tank presents:
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Life is full of negotiations, and so is the Shark Tank. Entrepreneurs and small business owners present their products to the Sharks and have to negotiate a fair dollar amount in exchange for a stake in their company. The Sharks are seasoned entrepreneurs themselves who are well trained in negotiating to win. This presentation will help educate all those entrepreneurs and teach them the language and art of negotiating. This presentation is part of the Shark Tank Class series as seen on Blog Shark Tank (http://www.blogsharktank.com).
Transcript of Negotiating like a shark part two
Negotiating like a Shark
Part 2
By: Jeff HopkinsOwner at BlogSharkTank.com
Season 5Issue 4
Blog Shark Tank presents:
Table of Contents• Types of Conflicts
• Positives of Conflicts
• Positional Bargaining
• Barriers to Effective Negotiation
• Dirty Negotiation Tricks
• Power and Influence
Types of Conflict
Understanding the type of conflict you are involved in is important because it
helps define the approach and method you need to use in the conflict
or negotiation
Types of Conflict
• Both parties want different things that are mutually exclusive
Mutually Exclusive Differences
• Both parties want the same thing, but can’t both have it
Distributive Differences
• Both parties want the same thing, but they don’t agree on how to get it
Pathway Differences
• Both parties disagree on whether a certain thing is right or wrong
Value Differences
Positives of Conflict
Surfaces differences
Encourages thinking & diversity
Explores options
Builds solutions
Improves relationships (hopefully)
Leads to best result (hopefully)
Participants are friends seeking agreement, avoiding a contest, and yielding to pressure
SoftParticipants are opponents seeking victory, trying to win, and applying pressure
Hard
Positional Bargaining
People bargain or negotiate for two key reasons…
Barriers to Effective Negotiation
Competition Greed Lack of Trust
Poor Communication
Time Constraints
Getting “even” at the other
party
Self-interest Disrespect Arrogance
Dirty Negotiation Tricks
These dirty tricks can ruin the
quality of any
negotiation.
Rushing time Adjusting room
temperatures
Saying phony facts
Refusing to negotiate
Power and Influence
There are many different levels of power and influence.
The Sharks possess what is called Reward Power.
Check it out…
Power and Influence• When others
believe you have knowledge that they don’t have
Expert Power
• When others believe you have the power to influence them because of your position or status
Legitimate Power
• When others believe you have the power to carry out threats
Coercive Power
• When others believe you have the ability to give them something they need or want
Reward Power
• When others believe you will like them, and therefore want to please you
Referent Power
• When others believe you represent a group with common beliefs
Group Power
Power and Influence
Because the Sharks possess Reward Power, they have leverage in the negotiation.
Your job, as the one seeking an investment, is to make them want to invest in you and your business.
In other words, if you are begging for an investment, they hold all the cards.
But if you make them want to partner with you, they relinquish some of those cards and give them to you.
Coming Up Next…
• Choosing the Right Shark as a Partner
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