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Most negotiators greatly underrate the amount of time required to plan for any business negotiation even though this is a critical part of business negotiation best practice.

Using your negotiation skills to analyse the context is a great place to start preparing for negotiations.

Some of the key elements to consider are:

- What is the nature of the sale/purchase in terms of risks involved, the level of expenditure and the difficulty of the transaction?

- Competitive analysis: What is the nature of the market and what choices do our counterparties have available? We will approach a sole supplier differently than those in a competitive market.

- Is it a one-off transaction or should we think about securing a long-term positive relationship that creates alternatives for future trade?

- Have we concluded any transactions with the other side in the past and what is their most likely approach to concluding business?

- How skilled are the negotiators on the other side?

- What cultures will be present and what are the local traditions?

- Who are all the groups & persons involved in the negotiation and what is the decision making process? A diversified approach is required as final decision makers will very often be interested in Return on Investment and increased revenues & margins. The final user who looks for enhanced productivity and efficiency will find the financial elements almost totally irrelevant.

Almost any negotiation training course will highlight the importance of setting formal deal objectives.

If we fail to plan and prioritise our deal objectives we put ourselves at risk of being exploited and/or ending with a sub-optimal conclusion. Whether you are engaged in negotiation on the sales or purchasing side, consider the following elements when preparing for negotiation:

- Price and payment terms, Key responsibilities, Delivery, Warranties, Intellectual property and Risks.

Price and Payments: The competition and the difficulty of most business transactions demand finding ways to create additional value and to move negotiation from haggling to synergistic and creative joint problem solving. Professional buyers are not charged with buying the most affordable solution but rather with securing their businesses with the cheapest total cost of ownership, which is made up of things like:

- Acquisition costs, Service costs, The cost of use, Training costs, Supplier performance metrics, Delivery, Quality and Client Support. (These concepts are covered in most purchasing training programmes).

If we are able to lessen our counterpart's costs in the entire life cycle of the product, solution or service and at the same time provide value for money, we are in a better position to find agreement.

Key Obligations: Ensure your product and services are defined and show your priorities. Include all the important quantities and specifications.

Delivery: How key are the delivery timelines and what happens if the delivery doesn't take place on time?

Warranties: In order to maintain trust and credibility make sure that you deliver any promises.

Intellectual property: Carefully negotiate IP ownership rights and think about the following factors:

- Which party is footing the bill for the Research and Development?

- Could the research and development be used by competitors to your loss if you don' t own the IP? How can you prevent competitors to use the same IP?

Risks: The best way to manage exposure is to include the elements in a written contract. Cultural consideration is critical. In Asian countries the goal of negotiation is not a signed contract. In China, unforeseen events are resolved through the relationship.

Analysing the above elements are crucial in planning Concession Strategies that will help you to leverage maximum value from trades and in planning meetings optimally.