In today’s business landscape, there isn’t a better time to close a business deal. With corporate restructuring, workforce downsizing and new markets to enter, it’s a lot easier to close a deal in the current economic environment. Well, as long as you have incredible business acumen.
Although the deal may be great in theory, your counterparts may not feel as optimistic or even as savvy as you are. Perhaps this has to do with the lack of presentation, a paucity of gumption or just the business on the other side of the table is wary of your ability to embark upon a new marketplace. All of this generates headaches.
Whether your business deal is sound or unsound, a lot of deals go through a complicated process. Bank loans, contractual disputes, and regulatory red tape are just some of the external factors two parties can frustratingly deal with. In most cases, there are five ways to close a deal:
- Assumptive Close
- Reverse Close
- Time Sensitive Close
- Direct Question Close
- Direct Statement Close
However, these concepts are straight out of business school, and everyone who owns and operates a business, or is in charge of mergers or is handling a financial statement, understands these closing ideas. This is why so many people ignore these ones and take a new approach without too much hassle.
Here are five ways to close a deal without too much headache:
1. Begin to Talk About Money Right Away
It may seem uncustomary or unconventional to start talking about money right away. It may leave you feeling uncouth and uncomfortable. However, it’s best to get this matter out of the way first because nobody wants to waste their time if the monetary aspect isn’t known or agreed upon. Simply put: a deal could see a merger and an acquisition, but if the pricing variable is hidden, then it’ll only sour the deal.
2. Understanding the Other Person's Money
Do you want the deal to benefit you and your company? Well, it’s best to understand exactly what you’re dealing with and how the other business earns its money and how it spends it. It’s not a matter of attaining a peek but rather complete insights into the other party’s financial situation. Getting your hands on these numbers is absolutely critical to ensuring the deal is closed as well as is a positive one.
Moreover, it’s important to not only look at the other company’s budget but to also perform your due diligence. In a lot of instances, professionals will agree upon a widely accepted number as the basis for their claim. However, this is the first misstep you could make in any deal. Instead, try to conduct extensive research and verify the numbers by yourself.
3. Take Your Time with Negotiations
The world isn’t coming to an end tomorrow. Your business isn’t closing up shop tomorrow. No, it’s best to take your time with negotiations. When it comes to any business arrangement, you have to work out every single point of the deal, and this can’t be achieved in one business meeting. Furthermore, you should refrain from negotiating prior to obtaining the remaining details.
4. Never Use Precise Figures
During negotiations, you should never use precise numbers, figures, and data. When you discuss money, you should always attempt to utilize ranges of costs, prices, yields, and performance. Why do this? It’s so you can gain insight into how low or high the other party is willing to work with. If you decide not to undertake this aspect, then you risk selling yourself too low or too high, and then price yourself right out of a potentially lucrative deal.
5. Step Back from the Deal
Finally, if the closing deal is taking too long, then it may be time to take a step back from the proceedings and take an objective look at the deal. Sometimes, when we involve ourselves too much in something, we threaten our objectivity. Rather than observing the costs and benefits, we want to close the deal immediately because we’ve invested a lot of time, energy, and emotions into the discussions. If you take yourself out of the picture for even a day, then you can perhaps find something wrong with the deal or even a benefit.
See Also: Five Ways to Spot a Bad Business Deal
Closing a business deal can be one of the most difficult processes, or the easiest. It all depends on whom you’re collaborating with, who is handling the closing, and when the entire thing will be completed. Due to the length of negotiations, it’s always better to take your time and not get wrapped in it because then mistakes will be made, and you’ll get a headache.