Closing techniques differ depending on a range of factors. Closing a business deal twenty years ago may involve outdated strategies. Dan Lok has an accurate view of what it takes to succeed in today’s business world.
Myths About Business Deals
Business deals involve a combination of skills. Depending on the industry and the individual, these skills may need to be tweaked. Although there isn’t “one” rule for closing a deal, there are several myths that Mr. Lok has noticed.
12 Popular Myths
Manipulation Is Always Bad
The word manipulation often describes characters who are vindictive or unstable. The actual term “manipulative” means to manage or influence skillfully. During the negotiation process, understanding the other person’s desire is a necessary part of the game. Many of the best deals have something in them for everybody. Manipulation can occur in a myriad of ways, including timetables and bonuses.
Never Make a Hard Sell
Providing pressure on the buyer may be necessary for some situations. There is a difference between being rude and applying pressure. Dan Lok is skilled in maintaining professionalism when focusing on business priorities. The SMART goal is one way to maintain emotional distance while concentrating on the deal.
Keep Them In Suspense
Psychological mind games that involve keeping clients in suspense are often a waste of time. Since the strategy has become popularized, clients are also familiar with the tactic. Instead of providing a long presentation, clear and concise information is preferred. Measurable data and a comprehensive understanding of the proposal are much more likely to work.
Think Realistically
While this may be practical advice for many other situations, having high expectations is essential. When trying to close a deal, aim high. Setting lofty expectations can feel daunting at first, but it’s only a starting-off point. Before starting the negotiation process, research and comparison are critical.
Closing Should Be Done As Soon As Possible
Closing a deal works best when all information is gathered, and the seller is sure. If there is any possibility that a client would be surprised, it’s not the right time. Accepting the first offer is not necessary if the timing is correct.
Don’t Use Benchmarks
Benchmarks are a meaningful way to gauge the success of a sale. Set realistic and prospective outcomes while creating a deadline. By planning the negotiation process, these goals can be at the forefront while discussing business. Specific deadlines can be shared with the client if it will increase the pace of closing. Deadlines have an impact on both parties and can spur creative thinking to come up with valuable solutions.
Don’t Leave the Table Until It’s Done
Some of the best negotiation strategies involve taking a break. Giving a client time to think can ultimately influence the outcome. Since it typically happens over an extended period, there is room to progress. Taking a break can also help recharge energy and help individuals unwind. If the negotiation drags on for too long, a third party can help decide how to move the deal forward.
It’s All In the Sale
A successful business needs a successful product. How success is measured will need to be adjusted to the industry, but there are a few basics to remember. Does the product have something the client needs? Does the product spark an emotion? Does the product have potential? These are just some of the questions that can measure how a service or product is evaluated. When making a business deal, the specific priorities of the client must be weighed heavily. Selling will not help if there is little value in a product.
Repeat Why the Deal Works
If a client has reservations about a business deal, don’t argue. Sometimes the best policy in these situations is to listen. Once the client has explained why the deal isn’t working, a solution can be made. Working with a client often involves mutual collaboration. Once they are invested in the deal, they are less likely to walk away.
Promise Everything You Think Is Possible
Trust is one of the main factors when it comes to closing a deal. Making lofty promises that may or may not be possible can damage the relationship. Promising slightly less than what’s delivered is an intelligent choice. This way, the client is pleasantly surprised. If a client expects a significant amount more than what is usually offered, his expectations are more likely to fall. Even the best-kept promise will still be satisfactory compared to a bonus.
Stay Off Social Media
Social media can play an essential role during the negotiation process. By using specific sites to find people in the industry, further connections can be formed. Prospective clients are also likely to have at least one social media account. Social media can allow both parties to express their personality while maintaining a certain level of privacy. After connecting online, the majority of business should be conducted off the internet.
Give Them Space
Maintaining a relationship even between negotiations is recommended. Touching base is not considered rude and can remind a client of the deal. This is also a way to apply light pressure without feeling pushy. Parties with similar interests often feel more comfortable with one another throughout the deal.
Making The Right Connections
Closing a deal involves several vital aspects. How to talk to a client is only one part of the equation. Personal and professional connections can play a significant role when negotiating. Dan Lok has had experience with multiple deal closings and is paving the way for those who want to learn. A valuable deal is important for all parties involved.