The time between applying for a loan and learning that you have been approved (or disapproved) can vary. If you are disapproved, you may be told almost instantly. If you are approved, it may take a few days though it usually takes longer. It may even take several months to learn whether you or your business has being approved for loan.

Borrowing from Family and Friends

If you don't want to, or can't get a commercial loan, you can consider getting a private loan from family or friends. This is usually real informal. However, you need to be careful because this can lead to ruined relationships.

If you are getting a private loan, it is in best interest of lender to have an agreement put in writing. The written agreement should state principal, interest charged and terms of repayment. This puts lender in better position either write off loan on his or her tax return or to legally come after you.

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H uman factors: Even when being at your most objective and professional – negotiation is still usually between two (or more) people. Your interpersonal skills count for a great deal: – how well you can assess others; what they want and are doing; your skills in gaining rapport and getting them to talk; good listening – and questioning. Also, handling tough situations and managing dynamics of meetings is key.

I ntegrity: Do not get caught up in game playing. Good negotiations will normally be taking place in context of (or at start of) an on-going business relationship and partnership. It does not matter what others may do – operate with integrity and be true to yourself and your values. You will get more good quality deals in long run.

G et before you give: Trade well – ask for what you want BEFORE you give!

H appy endings! Aim for win/win – and if you cannot get that leave door open for another time!

If you follow this process you will be well-equipped to negotiate effectively. You will be more confident and successful if you make time to work at developing package you are offering and, at same time think about what you want from other party. Think about things you can build into your package that you can use to “trade” with. (Called variables or currency or other terms to suit!) What might be things other party has which they would be happy to “trade” or move on? The key to this, is to choose things which are of low cost to you, but valuable to other party – and vice versa. Remember, in a negotiation, everything has a value, no matter how insignificant it might seem at time!

As part of this, plan your “best deal”, ie ideal solution for you, and your “worst deal”, ie lowest position you will take. It is important that you are clear about this – and know when to walk away! Within your best deal, include as many variables as possible so that you have things to trade with other than price. Think about what you will be willing to give, and more importantly, what you want to get in return!

The actual approach to meeting can be improved if you follow principles of “Triangle Talk” from Kare Anderson’s book “Getting What You Want”. Be clear about what you want, what they want and then keep your proposal tuned towards what they can accept.

When you are through “proposing” stage and in what many think is actual negotiation or bargaining stage, it is important to remember a simple phrase and it is all about “get” then “give”. “If you……..then I will……..”. Think about impact of opposite order, “If I……then will you…….?” What will an experienced negotiator do in response to that?

To help yourself with negotiations, practise! Look for opportunities in low-key situations and test out ways of getting a deal. Before going to meet that important client or major supplier, as part of your preparation make some time to go over your plan, your package and options, and then how other party might act. Practice using “get-give” trading phrase – and anticipate potential problems. You will be pleasantly surprised by results you get.

Graham Yemm a founding partner of Solutions 4 Training Ltd. He has worked with many different organisations around the world conducting both training and consultancy assignments. He is a Master Practitioner of NLP and an accredited trainer for the LAB profile programme – “Words that Change Minds”. Contact, <Back to Page 1