A successful negotiation is one where both sides walk away feeling they won something. Strong negotiation skills, according to Mike Anderson, founder and CEO of the National Small Business Chamber, can be the difference between success and failure as an entrepreneur.
Negotiating well is not a natural gift, it is a skill that can be learned and practised.
Skills every entrepreneur should build
- Think like a doctor: focus on solving the other party’s problem, not just closing the deal.
- Speak only to the actual decision-maker.
- Be the last one to speak in a negotiation.
- Listen more than you talk.
- Know when to walk away.
- Be thoroughly on top of your own numbers and terms.
- Be ready to solve a problem in the room, not after.
- Make decisions quickly once you have the facts.
- Stay patient and composed throughout.
- Build genuine rapport with the other party.
Common mistakes to avoid
Losing control of your emotions. Negotiations get tense. Losing your temper or patience hands the other side the advantage.
Looking desperate. Financial pressure is real, but projecting desperation weakens your position. Always negotiate as if you are willing to walk away, because you should be.
Not looking the part. Confidence, without arrogance, changes how the other party responds to your terms.
Six negotiation must-dos
- Ask clearly for what you actually want.
- Stay silent and listen more than you speak.
- Do your homework on the other party before the meeting.
- Aim high and expect a good outcome.
- Do not rush the process.
- Always be genuinely willing to walk away.
Frequently asked questions
Is negotiation a natural talent or a learnable skill?
It can be mastered with practice. Strong negotiators are made through preparation and repetition, not born with a special gift.
What is the single most common negotiation mistake entrepreneurs make?
Appearing desperate for the deal. The other party can sense it, and it weakens your position immediately.
Should I always negotiate directly with whoever I meet first?
No. Confirm you are speaking to the actual decision-maker before investing significant time in a negotiation.
Negotiation is a business skill worth mastering
Whether closing a sale, agreeing terms with a supplier, or negotiating with a landlord, the same fundamentals apply: prepare thoroughly, stay composed, and always be willing to walk away.
Further reading: Negotiation Tactics for Dealing with Suppliers, Customers and Employees | Department of Trade, Industry and Competition for official small business support information
Originally published in July 2019. Updated September 2026 to tighten this negotiation guidance from the National Small Business Chamber into a clearer, more actionable format. The core advice remains sound.
