Are you a first time business buyer and you are feeling apprehensive about getting a good deal on a new business? If so, it’s a perfectly natural feeling. Even the most seasoned of business investors can get nervous from time to time. That said, there are a few tips that you can brush up on in order to give yourself that little bit of a confidence boost when going in to negotiate a deal on a business. In this article, we’re going to teach you how to negotiate like a pro.
1 – Do your research
Knowledge is power and that statement rings even more true when it comes to business. The more you know about the industry you are tapping into, the business you are interested in, and the business owners you are negotiating with, the better.
You should also take the time to research other businesses for sale in Bangkok. If there are similar businesses out there, having a selection of other examples and prices can help with negotiations.
Do as much research as you can and enter negotiations from a position of power.
2 – Negotiate on interests and not positions
You don’t need to view a negotiation like going to war. It’s not an inherently confrontational process. All you are trying to do is find some middle ground and come to an agreement that suits you both. Remember that when going in to buy a business.
3 – Establish your objectives in your mind
Think carefully about what you need – including the must haves. When you know what is non-negotiable and what you would be willing to compromise on, you will be able to negotiate with greater confidence and flexibility.
4 – Set your budget in stone and stick to it
Remember that you’ve set a budget for a reason. If you cannot afford to go over X-amount, then don’t. As desperate as you might be to get started, leaving yourself out of pocket isn’t worth it – unless you have total confidence in the business that you are interested in buying.
In most cases, if you remain firm and confident on your budget, sellers will be willing to come down for the sake of getting the business off their hands and moving onto the next project.
5 – Seek legal guidance and representation
To make sure that everything is above board and that you are getting a good deal, it’s always worth seeking legal representation. In fact, consider it an essentiality. Just as you would consult tax specialists to manage your finances and taxes, you should consult legal specialists when entering business negotiations.
Having a reputable legal team behind you will give you the extra confidence you need to secure your new business at a fair and reasonable price.