Wealthy people are usually great negotiators. They know that “a penny saved is a penny earned” when making investments and paying expenses in their business.
For example, in my business, I always try to negotiate the best prices with my suppliers. For the sake of example, assume my margins are 20% (which they’re not). I know that if I can negotiate down the cost of putting on a live event by a factor of $10,000, it will have the same effect on my profit as an extra $50,000 in revenue.
Watch this video and I recommend some ways that you can brush up on your negotiating skills.
RECOMMENDED RESOURCE: SHARK TANK
One of the best ways to become a better negotiator is simply to watch wealthy people negotiate.
Watch the TV show Shark Tank to see great negotiation in action. In this show, entrepreneurs pitch to a panel of investors. The investors, of course, will always negotiate the highest possible stake for the lowest possible price. Kevin Harrington, who has sold over $4 billion worth of products and has spoken at MOBE Masterminds, is one of them.
Pay attention to the negotiation techniques that Harrington and the other investors use, and use them when dealing with suppliers and making investments yourself.
TIPS FOR SCALING YOUR COMPANY
A pitfall to watch out for is this: No matter how great a negotiator you are, there will come a point where you need to build a team and have your staff handle your business expenditures.
The reality is, your staff will spend your money more freely than you will.
You can mitigate this by creating the culture of “not paying stupid prices” within your organization. Amazon is known for doing this, and Frugality is one of their 14 Leadership Principles:
“Accomplish more with less. Constraints breed resourcefulness, self-sufficiency and invention. There are no extra points for growing headcount, budget size or fixed expense.”
A well known example of frugality in action at Amazon is its use of “door desks.” Instead of a boardroom table, Amazon uses a detached door sitting on a stack of crates. Also, Amazon only ever pays for economy class flights for its staff, and has them share budget hotel rooms with 2 to a room.
Ultimately, you still should check your business expenditure yourself from time to time. No one will ever care about your money as much as you do.
By saving money wherever you can, you’ll increase your margins and scale your company faster.
The MOBE Titanium Mastermind goes into more depth on this topic. Members learn how to increase margins, build a team and scale through successive revenue ceilings. To learn more about the Titanium Mastermind, click HERE.