Enterpreneurial Skills

Negotiation Skills
A business negotiation can be defined as a process in which two or more parties exchange goods and services and attemp to agree upon an exchange rate for them. Negotiation in many different forms are all around us. Labour negotiates with management, defendants negotiates with prosecutors, countries negotiates their national interest on the world stage. In business, suppliers negotiates with customers, creditors with debtors, and management leaders with their subordinates.

Basics of Negotiation
Negotiating tangibles:
Quantity purchased Price Delivery Who will do what Installation terms Interest rate Length of agreement Intangibles can be just as important when you are thinking about negotiation Before you negotiate, consider which issues and outcomes are tangible. These are more likely to require some kind of distributional decisions. Some examples:

Negotiating intangibles:

outcomes. These tend to be indirectly negotiated (shadow negotiation, which we discuss later) or require pieenlarging and creative resolution strategies. Some examples of intangible issues:

Getting the deal done Making the customer happy Standing by my principles Being fair Beating the competition Saving face, looking good to constituency Preserving reputation Setting a precedent.

Distributive Negotiation:
Claiming all the profit or the maximum share for oneself - winning it all.

Integrative Negotiation:
Creating value (expanding the pie) and finding solutions that best meets the needs of all or most parties - especially over time.

Research in Negotiation Tactics

There are many different tactics that are commonly used in the negotiation process. Just knowing the tactics is only half the battle, but putting them into effective use can be tricky if you do not know how to properly propose them. A few of the more common tactics that are used in negotiations include:

1. Get the Big Picture

Get a lay of the land at the outset, particularly the opinions and view-points of other parties. In other words, don't dive in and try striking deals right away. Be humble and curious. 2. Uncover and Elaborate Learn the motivations and concerns of other parties. Propose multiple solutions and invite your counterparts to improve on them. 3. Elicit Genuine Buy-in Win others to your side with reasoned arguments, not power plays or brute force. Avoid threats. 4. Build Trust First Directly linked to No. 4, this tactic is all about building a foundation of success. Don't try to 'buy' support. Rather, make incremental commitments of good faith.

5. Focus on process
Forget about results, or lack thereof. Put your energy into having a healthy and robust discussion free from knee-jerk reactions.

Application: Buying and Selling a business

One of the most important uses of enterpreneurial negotiation skills is for buying and selling a business. Often the most attractive way for n enterpreneur to to enter a business is to buy an existing one. It is not so enterpreneurial as new venture creation, but often the new owner reconfigure the business and its

operations so that it appears to be a new business, the buyers are able to add value sooner than might be possible in a start-up. The enterpreneur looking to buy a business will go through four stages which are as below. 1. SELF-ASSESSMENT: Your organization can benefit from conducting a self-assessment using the appropriate Baldrige Criteria for Performance Excellence (Business/Nonprofit, Education, or Health Care) and taking action for improvement. The following tools can help you get started.

2. Determination of deal criteria

A fully integrated real estate acquisition, investment, and management company, focusing on properties in the Chicagoland, New York and New Jersey markets. They are combine institutional scale and capabilities with the speed and adaptability of opportunistic entrepreneurs:
Thrive on challenging situations that allow us to create value Excited by unique seller circumstances that drive unorthodox deal terms Make all decisions locally Have deep capital resources that enable us to compete on any level Able to complete due diligence and close quickly

3. Resource consolidation
Consolidating IT resources through improved planning of timely, cost effective refresh cycles and a virtualization strategy not only increases utilization without incurring additional risk but it will ultimately help avoid costly, unnecessary construction of new data centers.

4. Contacts and Negotiation

The purpose of this service is to use our expertise and status as a state institution to create opportunity for our Institute clients. Through this service we will contact, introduce, and commence the negotiation process with one or more potential: customers; clients; joint venture partners; technology licensees; technology transferees; technology licensors; technology transferors; United States Exporters; or acquisition targets in a country for a particular Client in a particular industry. Where requested, we negotiate a potential international transaction to a term sheet level, when we hand off the process to the Institute Client and their legal counsel. An Executive or Entrepreneur will be able to use this service to narrow down their target contacts in a country and use our Institute as a means to garner up-front credibility and status in the process. This service is best tied to one of our Identification Reports.

Networking Skills
Whether we like it or not, part of being a successful business owner depends on the way we look, and the way we communicate with others, especially when it comes to business networking. You could be the most professional, devoted business owner in the world, but if you wear wrinkled clothes, or clothes in need of repair, your peers will automatically assume that you arent serious about building your business, and that you are a slob. And yes, the opinions of your peers do matter, as they can help you grow your business if you win them over as business contacts.

.Benefits and motivation for networking:

Employee motivation benefits networking among the team and the organization as a whole. It supports communication and fosters better relationships among other members. Employee motivation is much needed for bringing efforts towards the functional behaviors of a system. Networking is more of a connecting bridge to build employee motivation among people and strengthen relations.

.Types of Networking:
1.Personal Network is a set of human contacts known to an individual, with whom that individual
would expect to interact at intervals to support a given set of activities.Personal networks are intended to be mutually beneficial--extending the concept of teamwork beyond the immediate peer group. The term is usually encountered in the workplace, though it could apply equally to other pursuits outside work.Personal networking is the practice of developing and maintaining a personal network, which is usually undertaken over an extended period.Personal networking is often encouraged by large organizations, in the hope of improving productivity, and so a number of tools exist to support the maintenance of networks. 2.Extended Networks An example for extended network is like AppleTalk network is a physical network segment that can be assigned multiple network numbers. This configuration is known as a cable range. AppleTalk cable ranges can indicate a single network number or multiple consecutive network numbers. The cable ranges network 3-3 (unary) and network 3-6.

.Alliance Behaviour:
Alliance behaviours from a temporal perspective, we conceptualize a taxonomy of sequence patterns. Our approach defines sequences as the set of acquisition and alliances a firm initiates each year over its lifecourse. Using optimal matching techniques and clustering analysis, we empirically identify seven different sequence patterns and demonstrate that firm and performance attributes differ across these sequences and depending on the contingent effect of a firm's stage of development. We discuss the implications of our taxonomy and findings for our understanding of the temporal management of alliance portfolios and acquisition programmes.

.Processes of Reciprocity:
Arrangement between two participants in the producer market who are both buyer and seller to each other. For example, a company providing services to a trade journal may pay for advertising space in the journal with their services. A reciprocity opportunity may persuade a company to choose a less desirable vendor in exchange for sales made to that vendor.

Leadership skills
Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential.

The Entrepreneur as a personal leader

However, maybe you're a concept person, a strategic thinker. That's great. Stick with that, and start your planning with what I call the heart of the plan, the core strategy. Take a step back from your business and ask yourself four key strategic questions: 1. What am I really selling? Ask yourself why people buy your product, what they're getting from your business that they can't get elsewhere, and what wants and needs drive their decision to buy your product. 2. How do I want my customers to think of my business? Ideally, what words or phrases would they use to describe your business to a friend? Are you reasonably differentiated? What's the key message customers should be getting? 3. What am I really good at? What do I (my company) do better than anybody else? Am I correctly focused on that core competence? 4. What do my customers want that I'm not giving them?

 Three approaches to leadership

1.

Leader based leadership: Appropriate behavior of the person in leader role. Establishing and communicating vision; inspiring, instilling pride. Leader as rallying point for organization common understanding of mission and values; can initiate wholesale change .

2. Relationship based leadership: Trust, respect, and mutual obligation that generates influence between parties. Building strong relationships with followers; mutual learning and accommodation. Accommodates differing needs of subordinates; can elicit superior work from different types of people. 3. Follower Based Leadership: Ability and motivation to manage ones own performance. Empowering, coaching, facilitating, giving up control. Makes the most of follower capabilities; frees up leaders for other responsibilities.