Business Sales

Business value can be wiped out or exponentially surge suddenly through ongoing business risk

July 7, 2014
Understand value is ever changing

Timing is everything they say, and watching a businesses value change wildly in a short period of time can either be an opportunity or crushing to a seller or buyer.     Most often I see the latter, a seller who holds on too long to lose a majority of their market value,  or worse, become unable to run the business and lose everything. Two cases that make me lose sleep. A large manufacturer of metal products receives a 5.5 million dollar all cash offer.  The family also owns the real estate and eventually cannot come to terms on the lease rate.    They wind up passing on the offer due to the lease stalemate.   Shortly thereafter, the economic forces and resulting demand changes for this product. The company loses revenues and most of its profits.   Meanwhile the family has issues that continue till today, but the company is now not saleable at…

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Negotiation

The squeaky wheel…often gets its grease!

June 17, 2014
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I hate to admit it.   But the idiom “the squeaky wheel gets the grease” is true in negotiations.      I have seen it work over and over again in practice.  It is a form of “the flinch”, as it creates discomfort in the opponent thereby winning the negotiation through pure intimidation, threat, or inflicting emotional or actual pain (think ear pain…someone being loud, no violence please). As I watch negotiation tactics in practice, this one often works well.    Case in point.   I was in Macy’s once and someone was at the checkout creating a fuss…let me rephrase…this person was shouting like she was going to burn down the place.     Security, managers, and the sales associate surrounded her and through some terse, but very quick negotiations, she got what she wanted. Now, it doesn’t have to be at that level.    Squeaky wheeling can be done…

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Negotiation

My three 90/10 rules

June 7, 2014
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In negotiations I like to remember and put into practice three 90/10 rules. Listen 90%, talk 10% of the time.    I covered this in my  active listening blog.  http://bizdealnegotiator.com/negotiation/stop-look-listen-actively 90% of the conversations in a negotiation won’t matter much.  10% will be critical.   So you can use this to manage the time spent on crtical issues.     Karass covers this rule well here.  http://www.karrass.com/blog/the-90-10-rule-controlling-time-at-the-table   The basic thought is you can use this to your advantage by using the 90% to avoid the big issues, thereby crunching the time for over negotiating the 10% you care about or are afraid to tackle.      It’s a time pressure tactic. 90% of the relationship/conversation with a client/opponent will be professional, easy, and quite enjoyable.   10% of the time you will be required to have a backbone, be tough, assert yourself, and perhaps even flinch!    Seriously, you…

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Negotiation

Stop, look, & LISTEN…actively!

June 3, 2014
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You heard “stop, look and listen” in preschool!  A very important life  skill and turns out to be one of the most important skills in negotiation. There are a couple of 90/10 rules in negotiation.   One is you should be listening 90% of the time and talking 10%.      Not sure you can always adhere to the rule, but if you attempt to abide by it, you’ll be much better off. Also, there’s listening and then there’s active listening.      Active listening takes work and practice.    Active listening communicates to your negotiation partner that you are actually listening.   It makes them feel and understand that you are engaged and empathetic to the conversation and their needs. Here’s a few active listening tips: Look at the person who is talking. Lean toward them.  Open body language. No crossed arms. Nod your head. Smile. Raise your eyebrows….

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Negotiation

Gathering Information – It’s like a weapons depot

May 28, 2014
Probe, listen, note!

If negotiations is understanding that it’s not about you, then it must be about the person you are negotiating with.      So it’s logical that you would need to get information from them.     And the more information you get, the better off you will be. Stuart Diamond talks about this in his book “Getting More”.   His description of getting “the pictures in their head” and understanding your opponents perceptions.    And we all know that perception is a person’s reality!  And you will eventually need to negotiate based on the other person’s reality or effectuate a change in that reality!   Either way, information will be your weapon of choice. So your goal is to probe, asking open questions, and use your ears a majority of the time…not your mouth!  In other words..SHUT UP!   The more you understand their beliefs and convictions behind their goals,…

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Negotiation

Negotiation – Let’s start here

May 24, 2014
Negotiation is not about you!

I started off my negotiation specific blogs with one of my favorite tactics, the flinch.   I really should have started at the beginning.   Studying negotiation has been a fascination for me, and in my business, it is a subject not to be taken lightly.  Sure, we can have some fun along the way when we make our deals, but many times serious issues and big money is at stake.     Therefore I will try to keep this blog light to entertain, but I do understand that we often negotiate serious issues in business and personal lives. That is why I have committed myself to the subject.   I watch and note different styles, tactics, how they are applied, and the subsequent results.    Many of my lessons and teachings have come from the masters, so understand you may have seen some of this information before.   But I hope to add some context and…

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Negotiation

Negotiation Tactic – The Flinch

May 18, 2014
The flinch is all about communicating pain and discomfort.

WHAT???!!!! OH MY!!!  THAT’S UNBELIEVABLE! You know the flinch!  People do it all the time, kids are masters at it.    When a kid wants something, a flinch could turn into a tantrum.   Say like wanting a piece of candy in the check out line at a store.   The child starts with a whine that escalates into a writhing spasm on the floor….and often people acquiesce and give them what they want. As adults in a professional setting we can’t throw tantrums.  But we can flinch, and as a negotiation tactic, it is a wonderful tool.      And you need to know how to use it, deliver it, and how to deflect it when used on you. The basic concept is when a value proposition is rendered by someone for your consideration, you flinch as if struck by a bolt of lightning.     Since the vast…

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Business Sales

The Seller Tsunami! It’s COMING! A wave of business sales so large, that the business sale marketplace will be incredibly active for years!

May 15, 2014
Seller Tsunami

The Seller Tsunami!  It’s COMING! A wave of business sales so large, that the business sale marketplace  will be incredibly active for years! Why? Retiring baby boomers! Demographics (SME Research) dictate that up to two million businesses will be sold between the years of 2017-2020. Currently, Bizbuysell.com reports approximately 8,000 business sales per year. Even if that number is four times under reported (which I think it may be) we are looking at a five to ten fold increase in the number of businesses sold. And, that is how many businesses are sold, not how many will TRY to sell. What are the market implications of a seller tsunami? • The market turns from a seller’s market which it is currently, into a buyer’s market. • Lower valuations due to increased competition for buyers. In fact, some believe due to the shrinking workforce, there will be a huge lack of skilled buyers…

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Nonprofit Work

Why Give and Get Involved

March 11, 2014
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Why Give and Get Involved?    A quick disclaimer: I am not here to preach guilt or scold you into service. Many of you have given or currently serve your country or community. I applaud you. I am simply here to remind or guide seasoned veterans, or help rookies who seek to get involved. We all give back for different reasons. I was brought up to help others (thanks Mom and Dad). I also believe in Karma (i.e. if you help others you will be well treated in the end).  I enjoy solving problems and being a part of the solution. Shouldn’t we all leave this flying space rock a tad better than we found it? I have to admit, I also feel a tad guilty being a capitalist pig all day long. Let’s balance the karma-tic scales by supporting those who may be less fortunate, uneducated or sick and therefore left…

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Business Sales

Business New Year’s Resolutions-Top Ten List

December 31, 2013
2014-resolutions

It’s that time of year again where we get to rethink, reload, and re-energize for the New Year.    While you make resolutions for your personal life, now is the time to do the same for your professional life! Dress sharper… Start with accessories like ties, shoes, and jewelry.   Nothing says it has to be expensive; you will raise your game and have others take you more seriously. Think and plan big! Write down your goals and share them with a mentor.    Create your top three goals of the year on a document, email it to 5 mentors, and print it out and hang it nearby. Upgrade and leverage your technology.    Dump three apps on your phone and research 3 new ones. Get in shape physically & mentally!   Make sure it fits you.   You might not be marathon ready, but yoga could be a great way to focus on getting in…

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