People are emotional, not rational. Appeal to their emotions first and then help to rationalize their decision. If you can get them to articulate how they feel about something, if you can get them to self actualize or self realize it, the idea will stick. If you tell them how to feel, they will know that the idea did not come from themselves and they will be more likely to dismiss it down the road. It’s just like the movie Inception – they have to feel like the idea originated from themselves.
Tag: business
No means no (for now)
No doesn’t mean no forever. It means no for now. It means not yet. It means that your current offer hasn’t enticed them enough or that they are not motivated enough to accept your offer. No isn’t the end of the discussion, it’s the beginning of the negotiation. If you really want to make a deal, don’t stop at no. Dig deeper and see what relatively minor concessions you could give to the other party (which may be of little value to you, but greatly valued by them) to sweeten the deal.
How to lose
Don’t let your competitive side get the best of you. It’s fun to win. It sucks to lose. But keep things in perspective. Unless your livelihood or your family’s livelihood depends on you winning this game/earning the contract (whether in sports or in business), it’s probably not worth losing your cool over.
Don’t flip the monopoly board, throw the controller, or punch a wall because you lost. Everyone loses something in life. That’s just how life works. If you’re not losing in something then you aren’t pushing yourself to play against the proper competition.
When you lose, lose with dignity. You’ll maintain respect. If you lose and act like a child? People will lose respect for you.
Empathy as a starting point for negotiation
Listening shows empathy. When people feel listened to and understood, they are more likely to work with you. You can work in tandem towards a common goal (or at least a compromise) much easier if you start out by showing that you are listening to them.
When you truly listen to somebody and they can feel you are listening to them, it’s a sign of respect. That’s why you have to start out with empathy and active listening to obtain the best results in any negotiation or sales process. It’s important to use both empathy and active listening throughout any conversation, but especially at the start, because first impressions really do count for something. Don’t dig yourself into a hole before you really get started by disrespecting the other person/party.
You have to understand what it is that the other side wants. What is the issue they want solved in order to provide the best response. What is their pain point and how we can alleviate their pain?
If you go in with the same sales pitch every single time, it may work in certain situations, but your solution may be completely wrong for them in other situations. Listen, dig deeper, and empathize with what they are feeling to show respect and to get further in negotiations.
Go into every negotiation or sales pitch with one thing in mind: How can we make this a win-win situation so both sides leave happy, nobody leaves holding a grudge over the other side, and you don’t hurt yourself in future business with that person or their friends?
Thinking about diversification
Does diversification really make sense? I used to think, of course it makes sense! When you diversify, you are spreading out (aka minimizing) your potential risk. But you’re also minimizing your potential reward. So now, my thinking is…maybe. I think it depends on your level of knowledge in what you’re investing in.
Diversification for the novice investor can be thought of as risk mitigation, but for the expert in their field, instead of putting all of their eggs in the basket they know best, they would be putting some eggs in that basket and some in other baskets which they have limited information/knowledge on how to properly optimize their return on investment. An analogy would be to consider a generalist versus a specialist. A generalist might be a jack of all trades, but a master of none, just as diversifying your portfolio makes you “good” in several areas, but not excellent in any. This is because you have spread yourself too thin to truly become an expert in one area.
For the novice investor (which I am, so no judgement is being passed here), I think diversification makes sense. But if you are an expert in your field and you know something better than 99% of the population, why would you reduce your investment where you have an informational advantage? Does it really make sense to invest in things that you don’t know as well just so you are diversified?
Does a top-tier athlete try to go pro in multiple sports or do they eventually select one and try to be the best at that? When you are starting a business, will you get as far by trying to do a little bit of everything and serving every type of client or does it make sense to niche down and become the “go-to” person/business for one specific type of client? That’s where the saying comes from, “when everyone is your customer, nobody is.” You don’t differentiate yourself from your competitors who have either become the experts in their field or who have the name brand recognition and can afford to spread their resources thin.