EE3 Make deals to take your business forward
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.