When it comes to business negotiations, perhaps the most important phase is the preparation. An integral part of the planning process is to consider not just what you want from the exchange, but what you can bring to the table. Getting a great deal is as much about what you can leverage and have to offer as it is about what you stand to gain.
More than an afterthought
All too often, business finance is something considered on the fly, a resource used to help with an immediate situation. However, thinking about your cash flow and ongoing funding support with eyes to the future can set your business up to maximise – and the context of deal-making exemplifies this perfectly. Octet’s finance solutions can help your business find leverage, flexibility and wriggle room in negotiations.
Many clients seek finance solutions in a bit of a fluster – energy that no doubt follows them in to the negotiation room, hampering the ability to make a good offer or carefully considered decisions. This fluster could become an achilles heel in the end, leading the other party to take advantage or be put off from doing business altogether. The deals struck should always be in your business’ best interest – ideally, for your prospective business partner, too – not because you’re backed into a corner or are so desperate for business that you’ll take any offer. Being in a financially sound position will empower you with a strong foundation and options.
A strong credit line can help you to find and accelerate opportunities throughout your business operations, including in negotiations. A tangible example of this is seen in trade or purchasing facilities. Simply having access to a revolving line of credit can be a great way to bring more options to your proposal.
To put this into context, imagine you’re negotiating with a supplier on the price of an order. The ability to bring the payment waiting time from the standard 30-60 days down to zero is a bonus the other party would be remiss to not utilise. You’re now in the position to open up the conversation to better terms or prices by negotiating an early settlement discount. Bargaining chips that are of high value to them, low cost to you are aces that it pays to have up your sleeve.
Another scenario could be the option of increasing the size of your purchase or frequency of your purchase based on the facility you have recourse to – thanks to the appropriate. This could be a simple yet effective way to sweeten the deal for the other side, leading to opportunities such as better rates through economies of scale.
Octet customers can also be put in a stronger position by using our platform. Through this digital wallet, you can make payments in foreign currencies, accessing sharp exchange rates. Offering to pay parties overseas in their preferred currency, removing the need for conversion on their part and giving you certainty of the absolute cost, can be a handy asset to be able to leverage.
Octet even has offices in China who can engage with local suppliers on your behalf. Domestic and overseas suppliers connected on the platform may also feel more assured to do bigger deals with Octet customers, simply due to a trusted and common link that connects the two parties.
Confidence on your side
Negotiating with confidence will impact how you behave and, ultimately, the outcome. Confidence can be gained through knowing that you have chips to bargain with and your finances are in order, clearing your mind from stress. This clarity will enable better, more measured decision making. Particularly when negotiating with stronger competitors or pitching for much larger clients, confidence in what you can offer and can actually deliver may mean the difference between winning or losing the deal.
With many factors at play, financial solutions that suit your business’ unique needs and aspirations can arm you with the means to negotiate better deals. Contact Octet to see what power you can leverage for your business.
Want to learn more about good negotiations? Download Powering Business Issue 1: The Power of Negotiation.