Cristian Cojocaru: Only 3 out of 10 entrepreneurs feel comfortable negotiating

The most common problems that prevent entrepreneurs from negotiating are fear of negotiation, fear of asking and lack of negotiation skills and asking the right questions. In addition, international studies show that firms that do not have a negotiation process to use in their relationship with business partners can suffer revenue losses of up to 63%.

"A small part of entrepreneurs feel comfortable negotiating, most avoid initiating a negotiation. But the good news is that more and more entrepreneurs are realizing the need to develop this skill, especially in a highly competitive market, and want to know the secrets of business negotiation. For this reason, the number of requests for negotiation training and learning tactics to achieve the desired goals has increased quite a lot in recent years. Those who succeed in initiating a negotiation have the chance to either sell at a higher price, earning higher income, or buy at a lower price, thus achieving an economy, or a combination of the two, with obvious positive impact on increase in gross margin. Negotiation, when used correctly, can not only be a tool to create value for entrepreneurs, but can help create a long-term strategic partnership with the business partner, help build trust between the parties and maintain the long-term relationship of business," declares Cristian Cojocaru, negotiation expert and business consultant.

Fear of negotiation is a relatively widespread feeling, and international studies show that over 30% of people feel that negotiation causes them stress. Paradoxically, this fear does not come from the fear of losing the negotiation, but rather from the fact that either they are going to interact with a person they do not know, or because they have to ask for something in return, explains Cristian Cojocaru.

Fear of negotiating, developed in childhood, but negotiation can be learned

At the same time, the fear of asking, which is also a cultural problem specific to Romanians, prevents entrepreneurs from starting a negotiation. Since they were children, many Romanians have been taught that it is shameful to beg - and this leaves traces into old age. In a negotiation, it is natural for those involved to demand and make concessions, which is how a negotiation can create a common area of ​​interests, goals and partnership.

"Many questions are asked in a negotiation, both from one side and from the other. Like any skill, one can learn what kind of questions to ask and when is the right time for a particular question. Sometimes there is reluctance to use negotiation tactics, although as long as they are within a normal legal, moral, ethical framework, the use of tactics is perfectly natural. The main advice I give clients is to prepare before entering into a negotiation. Also, set clear goals and know what they want to achieve at the end of the negotiation process. It is also important to realize that the problem or situation they are negotiating is different from the person they are negotiating with. And, as the American businessman Harvey Mackay says, don't forget that in life you don't get what you want, but what you negotiate," points out Cristian Cojocaru, specialist in negotiation tactics.

Cristian Cojocaru emphasizes that negotiation is an essential skill for any successful entrepreneur and that education in this regard is crucial. Without solid preparation in negotiation, many entrepreneurs prefer to avoid confrontations or decide to accept the first offers, thus losing the opportunity to improve the conditions or terms of a contract.

According to international studies, more than 80% of sellers entering a negotiation have no back-up plan and only 51% of them think about their goals in a negotiation before entering a negotiation. Also, more than 40% of sellers do not allocate time for negotiation preparation. Companies that do not have a negotiation process to use in their relationship with business partners can suffer revenue losses of up to 63%.  Companies that have a systematic approach to sales and negotiation processes can register increases of up to 43% than companies that do not have such processes, according to a study by the British company Scotwork.

At the same time, a study on how millennials negotiate, commissioned by the American company Cars.com, shows that 32% of millennials say that negotiating causes them stress, 45% of millennials avoid negotiating altogether, and 52% of them admit that they have little or have no negotiation skills at all.

Cristian Cojocaru has over 25 years of experience in the domestic business environment, holding key positions in multinational companies, sales director at Vodafone, respectively at Telekom and director of the telecom division within Samsung Electronics Romania, until 2018. In parallel, since 2012, he has developed his own negotiation and business consulting firm for managers and entrepreneurs in medium and large companies. Having also an EMBA in finance and marketing and publishing the book "Secrets of negotiation in business", Cristian Cojocaru stood out in the business environment as one of the most appreciated specialists in negotiation tactics.