Effective Communication & Negotiation

by Leigh Anthony

Regardless of the type of small business an owner may be involved in, there are always negotiations that take place on a daily basis. These may be as simple as choosing a meeting time and place, or they could be much more important to the overall business structure, such as working out the details of a big contract. Business people need to be skilled in negotiation tactics and understand how to effectively communicate during the negotiation process.


In every type of communication scenario, including during negotiations, non-verbal communication is sometimes more important than what is actually being said. You should pay attention to the non-verbal cues of the opposing negotiator as well as to any non-verbal cues he may be portraying. For instance, if someone suddenly crosses his arms across his chest during the discussion, it can indicate that he is disagreeing with what is being said. Paying attention to non-verbal cues can help you to change your strategy.


What is verbally being stated with the negotiation is also important. Negotiators should aim to follow some simple rules during a negotiation, such as never raising voices, not interrupting the other person when he is speaking and avoiding using jargon that may not be easily understood by the other. A negotiator can easily assess the effectiveness of her verbal communication by asking the listener to paraphrase his understanding of the exchange.


Before a negotiation begins, you should prepare for the exchange. This includes identifying the goal of the negotiation, brainstorming multiple solutions and determining what the main negotiation tactic may be. In addition, you should create an outline of the main points that you will make during the verbal exchange of the negotiation. You should also take some time to determine which elements of the project you are willing to give up or compromise on in order to reach a successful agreement.

Open-Ended Communication

While questions that can be answered with one word such as “yes” or “no” have their place in effective communication and negotiations, open-ended questions can reveal much more information. For instance, asking the person what you would have to do to negotiate this deal today and walk away with a signed contract can reveal his objections to the deal. This tells you exactly what you need to focus on and overcome within your presentation. After asking an open-ended question, sit quietly and wait for an answer from the other person. Do not try to fill the silence with further communication.


There are certain power plays that can be used in negotiation strategies and which can impact effective communication during the exchange. For instance, sitting behind a big desk while the other person is effectively exposed in just a chair is a power play that gives power to the person behind the desk. While this may be effective in a psychological manner, it does not facilitate effective communication. Focus on creating a win-win deal with honest and open communication rather than tricks that can possibly provide an upper hand through intimidation.

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  • Negotiations room in office image by Alexey Kuznetsov from Fotolia.com
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