1. Do thorough research
2. Know your goals and ultimatum
3. Start off with a highball and lowball offer
4. Listen and work toward a win-win scenario
5. Set a deadline for the offer

Whether you’re trying to seal a business deal, solve conflicts, or ask for salary raise, negotiation is a skill every professional will need. It can be extremely difficult to reach an agreement no matter what the item is being negotiated. That’s why it’s important to plan ahead and know the most effective tips for a successful business negotiation.

Those who account for all possible outcomes stand a better chance of bargaining the right way. However, even the smallest mistakes can fail to close the deal. That’s where business negotiation skills come into play. Consider these five tips for a successful business negotiation.

Do Thorough Research

You can’t secure the deal you want if you don’t know facts about the subject of negotiation. This is why it’s important to do proper research first. Get as much info before entering the negotiation session. This is also a key to putting yourself in a position of strength.

Let’s say, for example, you will be negotiating with a supplier. If you understand the offerings and prices of the party’s competitors, you may be able to strike a deal that is more beneficial on your part. Another example would be when an employee is negotiating a salary raise, you can review his or her past performance to come up with a fitting amount.

Know Your Goals and Ultimatum

The best negotiators know exactly what their goal is before entering into a discussion. This means they also clearly know what deal they won’t accept.

If you don’t know the point where you will be willing to walk away, then you may be setting yourself up to make a bad deal that will force you to the losing side. Make sure you know your goals and what parts you are willing to concede.

Start Off With A Highball or Lowball Offer

If you are a client and you know what you are willing to pay to a supplier, then you can start with a lowball offer. Offer half the amount that you are willing to pay. Even if you know the supplier would not accept your offer, it establishes a reference point to push the negotiation further. In a way, this can be a negotiation tactic to put pressure on a seller who needs to liquidate their assets quickly.

On the other hand, you can also start with a highball offer if you are the seller. Lead with an amount that is higher than what you are willing to accept.

Listen and Work Toward A Win-Win Scenario

More often than not, people think of negotiations where one party wins and one loses. When in truth, a successful negotiation is supposed to feel like a win-win scenario. In that sense, the session is viewed as a method of problem-solving for both parties.

However, negotiations can’t feel like a win-win situation if each party’s arguments are not addressed properly. This is why some of the worst negotiators are the ones who do all the talking.

You need to carefully listen to the other party’s concerns to be able to formulate an appropriate bargaining response. After recognizing what the other party wants and what their limitations are, then propose a deal that addresses both your needs.

For example, let’s say your employee is negotiating for a higher salary, but you are not flexible enough with it. Then you can offer other win-win solutions in the form of flexible work schedules or remote work opportunities. Both these don’t cost much for your company but can be tremendously valuable for your employee.

Set A Deadline For The Offer

If you are the one making an offer, then set a deadline to accept it or walk away. It’s important to take note that setting a deadline shows the other party about how serious you are about the deal. During the deadline, the other party may also come back with a counteroffer. This being said, setting a deadline is one of the most effective strategies when negotiating.

Key Takeaway

Negotiations can be challenging without proper preparation. Even the slightest mistakes can put you on the losing side. That’s why we’ve listed five tips for a successful negotiation above.

Learn more about negotiation strategies from the best business podcast in the Philippines — Leadership Stack. Leadership Stack is the podcast for entrepreneurs by entrepreneurs. We invite professionals from different industries every week to share their best business, finance, leadership, digital marketing, and investment tips. Click here to tune in now!

The post 5 Tips For A Successful Business Negotiation appeared first on Leadership Stack.

1. Improves customer brand perceptions
2. Increases customer satisfaction
3. Retains customers and provides a competitive edge
4. Boosts profits

In business, customer value refers to the benefits that customers experience from buying a product. According to the best business podcast in the Philippines, the importance of customer value cannot be overlooked — especially during the pandemic — when it comes to achieving customer loyalty, gaining a competitive edge, and boosting profits.

Most business owners focus too much on the products they create when they should be focusing on creating value for customers and figuring out their needs. If your customers feel that they did not get enough value for the money they paid for, it will induce feelings of remorse and hurt your bottom line in the long run. Continue reading on to learn more about the reasons why customer value is important.

Improves Customer Brand Perceptions

Let’s say you’ve created what you believe is the greatest product ever. After investing ample time, money, and effort, you introduce your product to the market only to gather negative reviews. The truth is, the real verdict lies with the customer value you deliver.

Customer value delves deep into the core of a customer’s journey with the product. From the purchase intent, shopping experience, the actual purchase, down to the usage — all these factors play a role in creating customer value and informing them of how to perceive your brand. When you create products that deliver value, it shows you care about your customers.

Customer value improves brand perception which makes it so crucial for business success. It can be the defining factor that makes or breaks your business.

Increases Customer Satisfaction

Think about it. Your customers spend their hard-earned money to purchase your products. Of course, they will want to receive value that justifies their expenditures in return.

Keep in mind that your customer not only dashes to your store and pays for your products. They also exert time and energy to head to your store. Even when they buy your products online, they exert time to connect to the WiFi and browse your online shop.

As a business owner, you should provide value for their time and efforts, making sure they are not wasted. Part of creating value for customers is figuring out what will best fulfill their needs and eliminating what they don’t like in your product. In turn, your customers will feel satisfied.

Retains Customers and Provides a Competitive Edge

Marketing strategies and business strategies have evolved because customers became more aware of their preferences. To add to that, customers have endless product options and alternatives that can be easily accessed with a simple click of a button nowadays. Oftentimes, they will have little to no loyalty to spare if a brand fails to meet their expectations. So how can your business appeal to and retain its customers?

In today’s highly saturated market, many companies lower their prices when supplying products in an attempt to increase market share and compete with other companies. The downside of this, however, is that it can negatively affect profit margins and compromise product quality. This is why instead of lowering your prices to keep up with competitors, create more value for your customers.

The truth is, customers will compare the value of a product with a similar product when making a purchasing decision. When customers perceive that your products deliver value for the amount they paid for, chances are they will be more willing to stick to your brand.

Boosts Profits

According to research by Deloitte and Touche, customer-centric organizations are 60% more profitable than non-customer-focused organizations. This is because the former focuses on delivering value.

Businesses that don’t focus on creating value for customers run the risk of losing profit to competitors that offer similar products and better purchasing experiences. If a potential customer looks at your product and does not understand its value, it will be too easy for them to delay their purchase as well.

There are numerous drivers that influence a buyer’s purchasing decision. Customer value is one of those. It creates a sense of urgency that compels buyers to move forward with the purchasing process. Customer value helps your buyers realize that your product will meet their needs and more. Upon delivering on this, you will experience a higher market share, more loyal customers, and of course, more profit for further business growth.

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Key Takeaway

Now that you understand the importance of customer value, ask yourself if you are fulfilling this for your customers. It is a vital key for increasing profits and growing your business for the long term.

Need more similar business insights like these? Tune in to the best business podcast in the Philippines — Leadership Stack. Every week, we invite business professionals in different industries from all over the world to share their best entrepreneurship advice based on experience. Click here to listen now!

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1. Logistics Service Type
2. Industry Knowledge
3. Capital And Funding
4. Technology and Equipment
5. Licenses and Permits

Are you thinking of starting your own business? Then, you might want to open a logistics business. According to the best business podcast in the Philippines, the logistics industry is currently booming because there has been an increase in online shopping. Today, just about anything can be off the internet. Statistics show that the logistics market is expected to grow to about P1-trillion by 2023. But, just like any type of business, there are several things to consider before starting a logistics company.

Industries such as e-commerce, medical, manufacturing, food and beverage, hotel, and automotive require logistics services. One can say that the barrier to entry when starting a logistic company is relatively low. The real challenge, however, is ensuring the business remains profitable within a heavily competitive environment.

If you aspire to own a successful logistics firm, a solid business strategy is needed before opening up shop. Below are five things to consider before starting a logistics company.

Logistics Service Type

The first thing you need to do when starting a logistics company is to determine your target market and the service you can offer to them. Logistics businesses can vary from delivering local consumer goods to shipping products overseas. Decide on the logistics service type your business can cater to. Here are some of your options:

• Local Logistics – This refers to transporting consumer goods, materials, livestock, and more, domestically. Couriers fall under this category.
• International Logistics – This refers to transporting all kinds of items on a global scale. Companies that go for international logistics ​​cross at least one international border during operations and offer either air-based or sea shipping.

Keep in mind that how much resources, workforce, and funding you require will depend on your choice. As a startup, it would be best to stick to choosing a niche that you are most familiar with. This makes it easier to gain consumer trust and competitive advantage over those who offer the same type of service.

Industry Knowledge

Just like any type of business you want to start, you will need to have knowledge about the logistics industry as a whole. The logistics market has never been more competitive, with other players investing in the most cutting-edge technology to serve their clients better. As someone who wants to venture into the logistics industry, you will need to understand factors like procurement, inventory management, demand forecasting, warehousing, and order fulfillment

Make sure you familiarize yourself with all the types of logistical processes. Gather knowledge from industry experts and attend logistic seminars to know the ins and outs of the industry life cycle. Don’t forget to educate yourself and build your network to earn credibility.

Capital and Funding

A common mistake entrepreneurs make when starting a logistics company is believing that the initial customer demand will make up for any overhead costs incurred during operations. Take note that there are many unforeseen expenses in this line of business. This is why securing enough capital and proper funding can increase your chances of business success.

Have a clear understanding of all your costs. Ask yourself ​​how much you will pay for increasing fuel prices, your manpower, vehicle maintenance, technological equipment, licensing fees, and more. Think about your source of capital for all these factors. Do you need to apply for a loan or ask for financial help from angel investors?

Technology and Equipment

As mentioned, the logistics industry has never been more competitive. In the Philippines, there are already several major logistics players. To ensure your business remains profitable and stands out from the competition, you need to invest in top-notch technology and equipment.

For instance, you can set up logistics software that monitors all shipping schedules. Additionally, you can invest in tracking systems to know the exact location of your delivery items. This way, you can ensure you ship goods on time and boost customer satisfaction rates. Offering better customer experiences can help you gather positive word-of-mouth, repeat purchases, and build good supplier relationships.

Licenses and Permits

Starting a logistics company means dealing with either exporting or importing products, or both. Hence, you will need several licenses and permits from local governments.

If you plan to go for international logistics, securing licenses becomes more crucial because you are delivering products across borders. The last thing you would want is to be penalized by customs authorities for not having permits for your operations.

Key Takeaway

Starting a logistics company is a profitable choice for many aspiring entrepreneurs today. Just make sure to remember the things to consider above to ensure your company stands out and attracts loyal customers amid the competitive business environment.

Need more expert business tips? Tune in to the best business podcast in the Philippines — the Leadership Stack. We invite industry experts and prolific entrepreneurs every week to provide their best tips for aspiring startup owners. Click here to listen now!

The post 5 Things To Consider Before Starting A Logistics Company appeared first on Leadership Stack.

1. Gain advice from time-tested experiences
2. Chances of succeeding are higher
3. Valuable networking opportunities
4. Business mentors offer reassurance
5. Helps in developing a stronger emotional quotient

Man startup owners begin their business journey without a mentor. Friends, family, and even acquaintances can indeed offer bits and pieces of information about the business world. However, the importance of having a business mentor is that they go beyond just sharing wisdom.

According to the best business podcast in the Philippines, business mentors are the ones that can have a direct impact on your business growth over time. If you didn’t already know, Facebook’s Mark Zuckerberg was mentored by Apple’s Steve Jobs, Steve Jobs was mentored by Apple investor and executive Mike Markkula, and so on.

In this article, we delve deeper into the importance of having a business mentor. Read on!

Gain Advice From Time-Tested Experiences

Experience is considered an important factor for reaching business success. But if you are only a budding business owner, you may lack the experience needed to solve business problems along the way.

You can find plenty of information about how to run a business from books or online resources. However, there’s only so much about a person’s experience you can gain from these. Business mentors are professional advisers that can be trusted because of their time-tested experiences in the field of entrepreneurship and leadership. Perhaps the biggest benefit of having a business mentor is that they will share solid advice in hopes of helping you learn which actions lead to mistakes and successes.

Chances Of Succeeding Are Higher

Having a business mentor provides you a higher chance of your business succeeding. And, this isn’t a claim. Several research and surveys suggested that having a mentor is a driving factor to success.

According to an executive coaching survey from Stanford Business, 80% of CEOs stated they received some form of mentorship in their life. Another research from Sage found that 93% of small and medium-sized businesses recognize that mentoring is an instrument to success. However, only 28% of those businesses currently have business mentors.

Out of all the respondents in the survey by Kabbage, 89% of business owners who didn’t have a mentor wish that they did. When you realize the number of startup businesses that fail, you too would wish you had a business mentor. According to Fundera, 20% of new businesses fail during their first year, 30% fail during their second year, and by the end of the decade, there is a 70% failure rate.

Bridge the mentoring gap. Your chances of business success, and even means of survival, can be enhanced in several ways. Think about the benefits — time-tested advice, industry connections, ethical guidelines, constant checks — and how they can lead you to success.

Valuable Networking Opportunities

As stated earlier, business mentors are professionals who have time-tested experiences. With years of experience, they are more likely to have an extensive network that can leverage your business.

Business mentors will be invested in the success of their mentees, so it will only make sense for them to tap into their network to do so. Aside from your current mentor, you can learn from other industry leaders and maybe even form partnerships.

Without a business mentor, you will have to work your way up from the ground to form networks and gain the trust of big-league business entities.

​​Business Mentors Offer Reassurance

According to a report from Telegraph, self-confidence contributes to career success. This is why quality business mentorship is important, especially for startup entrepreneurs.

Starting a business is challenging and you will have to face hurdles along the way. Enduring the consequences of failure can set your back drastically. The impact of business failure is often overlooked and startup entrepreneurs without mentors suffer the most. During such hard times, your business mentor is someone that you can share your worries with and can reassure you will be guided to success.

To add to that, your mentor will likely have seen it all already when it comes to running a business. When you run into a problem, chances are your business mentor will already know what to do. They can offer you the confidence to lead your company to success.

Helps In Developing A Stronger Emotional Quotient

A strong emotional quotient is crucial for attaining business success. Why? The worst business decisions are done during the heat of the moment. You can end up making judgments based on emotions that will plummet your business to failure.

But when you have a business mentor, you will have someone who will remind you to take a hold of your emotions so that you can make smart decisions. You will have a mature professional alongside you who will teach you how to react objectively during high-pressure business scenarios.

Key Takeaway

The importance of having a business mentor cannot be overlooked. If you don’t already have one – now is a good time to find someone. Although there are plenty of business mentors out there, you must also make sure you choose the right person who will meet your needs.

Looking for additional ideas on how to find the right business mentor? Tune in to the best business podcast in the Philippines Leadership Stack. We invite guest speakers from diverse industries, both local and international, to provide time-tested advice to help aspiring entrepreneurs. Click here to start tuning in!

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