Sometimes, in order to achieve your goals, you have to negotiate.

Self-employment is a promise to yourself. You’re in business for you. You’re not going to settle. You do what it takes, within ethical and legal limits, to achieve your goals. 

Have you ever negotiated at work?

During a bonus discussion, perhaps your boss announced, “Linda, you’re receiving a bonus of seven point five percent this year” as though the topic isn’t a point for negotiation.

You´ve Got To Negotiate...But Isn´t That Risky?

If Linda were speaking as her male colleague, Liam, she might recall the “bonus formula” her boss has mentioned in the past during team retreats and the like. He may have mentioned that the bonus standard for the industry is about fifteen percent.

Even if he didn’t mention it, Linda can and should research what competitors are paying their employees at bonus season this year. She should also use a sharp pencil to analyze how much money she’s saved and produced for the company during the year and, if she’s worked for the company over time, throughout her tenure.

You´ve Got To Ask For What You Want

An article published by Harvard Business Review calls to mind the importance of negotiating skills. “Nice Girls Don’t Ask” (Babcock, Laschever, Gelfand, and Small, 2003) points out the importance of asking for what you want.

Because, if you don’t ask, it’s unlikely you’re going to get.

Linda, our example above, should prepare notes before a bonus discussion. She knows the agenda topic when her boss arranges the meeting. It’s certainly not a surprise. She should organize the information about the team or division’s sales, revenues, and earnings, and present the part she played in achieving the results. If she’s earning a bonus, she’s performing for the business.

Rewards Come To Those Who Negotiate

When you’re in business for yourself, you must ask clients, employees, vendors, and others to engage your services, perform tasks, or provide a discount. When a prospective client gets to the money question, “What’s this going to cost me?” it’s tempting for many women to respond with “Let’s discuss your budget.”

Most consultants understand there’s a time to discuss money with the client. The client’s question is a buying signal.  If the consultant has done her homework, she understands what this client pays for similar services. And if she doesn’t know what this client pays for similar services, she knows what the client’s industry pays.

When the client responds to the consultant’s trial close, she can respond “Our retainer is twenty-five percent of _________” (or whatever the percentage or standard is for the client’s industry).

How to Negotiate: The Skills That Count

If you’re starting a new business, it’s perfectly fine to start at the industry standard and accept a little less to sign the client. The client could offer “Twenty percent,” and the consultant could counter with “Twenty-two and a half percent to have the privilege of working with you.” Then, the consultant must discuss any specifics and deliverables to appear in the contract. Explain that you’ll start work on the client’s assignment as soon as the contract is signed and dated.

That's it. You've got a client!

Conclusion

Self-employment means putting yourself first. You’re client-focused but the business is all about you!