Negotiations are the key to any settlement in any business transaction.  The “bottom line” is the either the maximum or minimum value that will be accepted in a given situation.  The bottom line changes as the negotiation events change in a given scenario.  Company policies and parameters are also in play during a negotiation, so make sure that your bottom line is within the bottom line of the company you are representing or bargaining with in the negotiation process.

Bluff or not?

When you are negotiating, there will be a point where you cannot give anymore.  Your choice is to either bluff or to walk away from the last offer in the negotiation.  By making a list of issues and the make or break versions, you will be able to go into a negotiation with your head straight.  There should be a price issue that you can deal with it, a delivery time that is required, and a legitimate method that will produce quality results.  Once you have the bottom line on all of these questions answered, you can go into a negotiation with a level head.

Preparation is Key

When deciding whether to accept an offer or not, you should go back to your list of preparation tasks.  You should already have all the key elements laid out in some sort of spreadsheet. There will be bottom line information for every facet of the business you are negotiating.  Once the offer changes, the bottom line of your negotiations may also have to be tweaked.  Consider what you absolutely need to survive and what you are willing to forego in hopes of making a lasting relationship.

Risk Analysis

Working on any type of negotiation requires planning and forethought.  However, when you do get to a place where you believe you can agree with another party, consider the levels of risk that will be involved based on your final decision.  There may be some financial costs upfront that will require proper planning, but in the end if the business move is solid, the negotiations should be made.

Research

Consider you are in the midst of a medical settlement.  You will have a lawyer and the other party will have their lawyer.  Hopefully, your lawyer has a great amount of knowledge in the particular medical issues you are facing. But, you should ensure that you research past cases that have dealt with similar situations. Learn the facts and determine the values that were won based on the medical issues at hand.

Knowing your bottom line will ensure that you do not give or concede too soon.  It is important that you spend the time and energy to research your options and be prepared for several types of options. Know exactly what you are getting yourself into prior to beginning any transaction.  This will help protect your investment in the process and ensure that you end up in a comfortable situation in the end.  The worst scenario is making a rash decision that was not based on research and regretting that decision for the rest of your life.