When Is it Time to Turn Your Back on a Deal?
Many people feel walking away from a negotiation is like losing a battle. However, harboring this kind of attitude is neither helpful nor accurate. Negotiations are discussions that aim to reach an agreement between two or more parties.
The agreement should offer a better situation for all parties than they're currently in. If an agreement can't offer any improvement from the current situation, it may be better to walk away.
Knowing When It's Time to Walk
Not walking away from an unfavorable negotiation can result in untold stress or losing money, time, or employees, and it may even damage your reputation. Considering these potentially disastrous consequences, it's important to know when to turn your back on a deal.
Your BATNA Is More Appealing
In negotiations, BATNA refers to the best alternative to a negotiated agreement. Negotiators should decide on their BATNA before the negotiation commences. If the deal is going in a way that makes another option seem better, it could be time to walk away.
It Feels More Like a Sacrifice
A new deal should involve gaining something valuable rather than having to give up what you already have. If a contract or deal feels more like a sacrifice, it could be a sign the deal just isn't for you. Don't make compromises you're liable to regret later on.
You Don't Understand the Parameters
It's easy to get swept away in the moment during a conversation, but don't agree to things you don't fully comprehend. If the other party is talking in a language you don't understand, don't be ashamed to let them know. There's no shame in not understanding something, but staying quiet and simply agreeing may have unwanted consequences.
Don't See It as a Failure — It's Not
You can't win every negotiation you enter—the world doesn't work like that. However, you shouldn't see walking away as a failure. The real failure would be accepting a suboptimal deal. Walking away shows that you have personal standards to upkeep and you're not prepared to simply agree on anything.
Sometimes, you may not even be able to put your finger on why a deal doesn't fit, only that it seems off at some unconscious level. Trust your instincts.
The Importance of Contract Presentation
When presenting a contract to the other party, making sure it's professionally presented and highly refined is paramount to closing a deal in a good way. The presentation of the contract reflects how you regard the deal. While some may argue that things like font and format aren't important, the other party will notice flaws and mistakes. When all adjustments are finalized, be sure to compress a PDF online.
Turning Your Back on a Suboptimal Deal
Negotiations are liable to become convoluted and hard to navigate. Knowing when it's time to walk away from a negotiation helps you navigate the landscape a little better. Knowing your BATNA, planning beforehand, and walking away when it starts to feel more like a sacrifice are highly advised.
If you're looking for advice, networking opportunities, or access to new markets and opportunities, joining your local chamber of commerce is a great start.