NEGOTIATION BASES In every deal, there are three possible scenarios: WHAT YOU WOULD LIKE TO GET WHAT YOU NEED TO GET WHAT YOU GET When clients asked me what they could expect when they sold their business, I would tell them this, using 3 fingers to emphasise the point. The middle finger (no rude connotations) was what they would like, the ring finger was what they needed, and the pinky was what they would get. I would then elaborate: Number one makes you very happy, but the other parties are often less happy unless the deal is based on a win-win. This hope is akin to winning the lottery – it can happen, but it happens rarely. Number two makes you breathe easier. You have recovered your costs and paid your debts. You may not be happy, but you will not be too sad, and the other party will be happy that they are getting value (hopefully). Number three makes you unhappy and does not relieve the stress factors, but the other party is usually very happy. You are poorer, but wiser. Wisdom always comes at a cost, so you may end up broke, but wise. You should always enter into negotiations understanding these options. Go in expecting number one; you have looked at the deal from the eyes and expectations of the other party- what positives and negatives they may have, and how you can solve these. This is your primary focus – what does the other party want, and how can you help them get it while working towards a successful number one? I met a young Turk (a young business tycoon) who bragged in a very aggressive manner that he NEVER compromised. He was telling the truth, and his philosophy worked, until it didn’t. Perhaps his business technique would have worked for more than a couple of months had he not told everyone, and I mean everyone, that he would never compromise. No one likes to lose, and everyone likes to win – or at least have enough wriggle-room to imagine that they did not totally lose. Very shortly into this young man's business life, his reputation for arrogance and his uncompromising attitude overwhelmed any skills or virtues he may have had, and his business failed, along with his enthusiasm and confidence.