Smart Business Magazine, Sept 2012

30 Smart Business Atlanta September 2012 Click or scan to read more columns by Michael Feuer WHATS THE MOST IMPORTANT QUESTION TO ANSWER BEFORE THE NEGOTIATIONS BEGIN Sometimes its best to start at the end In developing a strategy creating a new business or launching a product line intensive preplanning is what can make the difference between success and failure This same principle applies to negotiating just about anything No matter what you want to achieve be it selling a new customer buying a competitor or hiring a superstar you must determine what is the end result you want before you put pen to paper or make that first introductory call Weve all heard hundreds of times about the importance of putting yourself in the other guys shoes or showing some empathy Good basic advice but do you really follow these suggestions In many business relationships if it becomes a win lose transaction at the end of the day one side is going to be very unhappy and the other side albeit temporarily satisfied could ultimately lose too In most instances both sides have alternatives Unless you have found the Holy Grail that no one can live without the other side always has choices One of which can be to do nothing and take a hike Most negotiations begin with the thought Whats in it for me Instead the first question should always be How can we enable the other side to win or feel as though they have won Its all about looking at the objective through the other persons eyes This simply translates into giving the opposition something that they must have even if theyve yet to realize it while meeting your own needs Instead of starting with figuring out how much can you make on the deal or the positive result that will accrue to you if you hire a particular superstar ask yourself What can I do to make the other side feel like the winner For your next initiative start at the end and work toward the beginning You might just be pleasantly surprised with the road map you construct using this technique Here are a few examples You want to buy a competitor because it has a product that will enhance your offering but you dont need all of the other widgets that this target manufactures The traditional strategy would be to make an offer knowing that if you succeed youll scuttle all of the companys other operations cherry picking what you want from the carcass This could work and might be the easiest way to achieve your goal but this Machiavellian method of taking no prisoners likely wont play well with the target companys owner who has spent years building it and is emotionally invested in the business and the organizations employees When you look at the situation through the lens of the founder you determine that a different approach such as paying a good price for the entire business plucking the item you want from the company and then selling the rest of the company back to the employees could be the ticket to getting discussions started This way the owner gets his money he is a hero with his employees and you acquire the product you need to grow Lets say you want to hire the best salesperson in your industry who unfortunately works for your competitor Instead of just going in and offering a big salary and bonus which he or she most likely has already been offered by someone else try to determine after doing your homework what this superstars hot buttons are Maybe he has made it known that he would like to work remotely from a desert island while continuing to build his book of business Looking at it from his perspective you figure out that you can buy him his piece of sand somewhere with a beautiful view obtain high speed Internet connectivity to his paradise and allow him to work six months per year in his dream location Rather than just making a cash rich offer start the negotiations by providing a solution to your targets fondest expectations Putting yourself in the other guys shoes is far from a new idea However too many executives forget that creating a win win is preferable to having it only your way Remember many times instead of just knowing the answers you first have to figure out what questions to ask to ensure success MICHAEL FEUER co founded OfficeMax in 1988 starting with one store and 20000 of his own money During a 16 year span Feuer as CEO grew the company to almost 1000 stores worldwide with annual sales of approximately 5 billion before selling this retail giant for almost 15 billion in December 2003 In 2010 Feuer launched another retail concept Max Wellness a first of its kind chain featuring more than 7000 products for head to toe care Feuer serves on a number of corporate and philanthropic boards and is a frequent speaker on business marketing and building entrepreneurial enterprises The Benevolent Dictator a book by Feuer that chronicles his step by step strategy to build business and create wealth published by John Wiley Sons is now available Reach him with comments at mfeuer@ max wellness com Tips From the Top Michael Feuer