R. Shawn McBride recently spoke about negotiations and he who can’t walk away loses.
Hey Folks, Shawn here with you. Today we’re talking about negotiations. People are very nervous about negotiations, but I want to tell you one fundamental principle to always keep in mind that’s going to fundamentally change how you feel in a negotiation. And I’ll tell you, the person that can’t walk away loses the negotiation. It is that simple. The person who can’t walk away loses the negotiation. So if you find yourself in a negotiation situation and it’s difficult for you to leave, you’ve got a problem. You’re in the weak position. If the other person can’t leave, you’re in a strong position. So knowing who walks away is stronger and who’s able to walk away really tells us a lot. If both people can walk away, we’ve got a very even negotiation.
But you know, let’s take it back to your personal life. If your car breaks down and you don’t have another car and you’re stranded out of town, you’re in a very weak negotiating position with that car dealer. They know you need a car, your back-up options are not very strong, and you’re probably not getting a good deal. If you’re buying another car, maybe a convertible for fun on the weekends, (I’ve done this), you know that you don’t need that car. You can walk away from that transaction. You can say never mind – I don’t need it. You have a lot of negotiating leverage because you don’t need the outcome.
Same in business, when you need the outcome, when you’re desperate for it, when it’s really important to your business, and you don’t have other back-up options, you’ve got a problem. If the other person needs you, and they don’t have back-up options, you have a lot of leverage. So, you want to understand who has the leverage. The person who can’t walk away loses the negotiations. You want to win, so you want to use the walk away options, you want back-up options, you want to know what you’re going to do if the negotiation doesn’t work out. These are very simple principles that will really change how you negotiate.
Now, if negotiation is something you’re interested in, it’s something we occasionally talk about on the McBride for Business blogs. So, check us out. Similarly, at McBride Attorneys blogs, we talk about these issues too. Get our videos, on the R. Shawn McBride public page on Facebook. And check out the McBride for Business YouTube channel. Finally, you’ll want to download the protect your business evaluation checklist. We talk about how to maximize the value of your business. Just running through that checklist is going to find some great tips for you.
And if I can help you or your organization be more effective negotiators, I would love to. We do training, we do keynotes on this. We like to get people thinking about negotiation as a process, as a communication to do more. And I know that we can unlock great value. So, if this is something of interest to you, reach out to me at McBride for Business. R. Shawn McBride signing off. I will talk with you very soon.
Make sure you download our free checklist to assess your business.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Korry B.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.