3 tactics for negotiating the best deals for your business

Tierra Destiny ReidTierra Destiny Reid had heard horror stories about entrepreneurs borrowing too much money and wasting cash on unnecessary start-up expenses.  So when she got word from Macy’s headquarters that they were closing an entire corporate office and downsizing everyone who worked there, including her, she knew it was time to launch her business — without making these same mistakes. 

That was more than a year ago and Tierra stuck to her plans and has never looked back.  In fact, she did such a great job launching her first business that she now has two. Her retail store, Stylish Consignments, opened on October 16, 2009 in Lilburn, Georgia and was profitable before her 365^th day in business. She says it was because she negotiated every agreement and found low cost creative alternatives for every aspect of her start-up.

As a result, Stylish Consignments has also turned out to be a sort of proving ground for Tierra’s entrepreneurial skill.  And everyone around her has taken note — even Tory Johnson, a prominent multi-millionaire entrepreneur, best known for her reports as the jobs contributor on Good Morning America.

Tierra’s second business, Serious Startups — an entrepreneurship advisory and strategic consulting firm — recently launched with just as much public fanfare as her store and with just as strong a foundation, if not stronger; due to many clients who trust Tierra’s expertise.  Her leadership and influence among entrepreneurs, and her willingness to take action, earned her the opportunity to meet with Tory Johnson in New York to discuss how she could grow Serious Startups into a major company.

Armed with great experience in negotiating every item and service she needed to launch her own serious startups, Tierra shared exclusively with MsCEO.net her top three tips for successful negotiation when you are getting your company up and running or determined to run your business on a dime:

1. Know exactly what you want and exactly what you have to offer before negotiating begins: Tierra said, “I always have a wish list and I know my deal breakers going in.  Being very clear about the value you are offering and what you would like to walk away with will give you confidence to ask for what you want and be clear about what you can offer. Confidence is a key factor in negotiations.”
2. Do your homework and practice: “Research to find out the general outcome of business negotiations like the one you are preparing to take on. That’s not to say you should reduce your expectations or not make a big ask, if that’s what you are going for, but you should have a general idea of what normally happens. Get as much information as possible in advance so you know what you are talking about and also so you know whether or not on-the-spot counteroffers are a good or bad deal.  Also, before you get to the ‘real’ negotiating table, practice by talking through deals that you probably don’t want. When I was looking for retail space I wasn’t sure about everything that would be asked or required by property managers so I called a few places on an opposite side of town just to find out what kinds of information and rates they would offer —and the kinds of questions they would ask me. That prepared me well for my real deals,” she said.
3. Simply ask; and ask big: “Negotiate and ask for reduced rates or extra benefits for everything. I negotiate value add-ons for everything just to make sure it’s fair and worth my money.  We all have choices.  A lot of people don’t view their spending power as a choice but that’s exactly what it is.  I negotiated utilities, fixtures, my leased space — everything.  Before agreeing to sign my lease I negotiated for 3 months free.  I got my store open and making money before I even had to pay rent. Lots of people wouldn’t have asked for that kind of deal, but I did. Don’t be afraid to ask,” Tierra said.