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Small Business Savvy: Why You Need Negotiation Skills

Work on your negotiation skills and you will see your business grow from strength to strength.

Amy Galbraith

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Starting and running a successful small business requires skills and knowledge that many business owners may not possess. For example, the owner of a food truck may be an amazing chef but they may not have ample knowledge of accounting, employee management or inventory control. They may also not have the ability to successfully negotiate with landlords, partners or suppliers.

The ability to reach an agreement on an issue without having to compromise too much comes with practice, and can be learnt by taking negotiation skills courses and interacting with more established members of your industry. The reasons why these skills are vital to small business owners are outlined below.

These skills are beneficial for everyone involved

While negotiating in a boardroom is a useful skill to have, small business owners need skills that translate to their situation. Negotiation skills are needed when meeting with suppliers, in order to receive a better price for bulk goods, and can be useful when hiring a new employee and discussing what their responsibilities will be.

Related: Manie Spoelstra On Why Negotiation Is The Genesis Of Entrepreneurship

Being able to negotiate professionally is also beneficial when dealing with customers. You will be able to reach an agreement that suits you both, without fumbling and settling for less. Your customers will respect you as a vendor, especially if you are able to stay calm and collected throughout the transaction.

You can create win-win situations

Negotiating is not simply creating a positive outcome for one party but reaching an agreement that both parties benefit from.

The best small business owners are those who are able to negotiate an outcome that has a win-win result, in which every party involved believes the deal is a good one.

Being able to reach agreements that are positive for both you and the other party is a highly valuable skill. Not only will everyone involved have positive results but you will become a more respected businessperson. Your suppliers will enjoy dealing with you, your clients will respect you and partners will be more likely to use your viewpoints in their decisions.

Good negotiation will improve your bottom line

The ultimate goal of a negotiation is to reach an agreement that is favourable to you and your business. By being able to negotiate a good deal, you are automatically improving your bottom line. But, this takes a keen mind and a knack for negotiation, which some business owners do not have. By taking courses, you’ll be able to improve your ability and thus improve your end results.

If you are able to reduce your overhead by 10% due to an effective negotiation, that money can go directly to your profit margin. Negotiation skills are imperative for a thriving small business, because as the business owner, you are in charge of dealing with suppliers, partners and clients and will need the ability to create outcomes that favour your bottom line and end goals.

Related: How to Win a Business Negotiation

Your business confidence will be boosted

Walking into a negotiation feeling unsure of yourself and your ability to negotiate can lead to an agreement which favours the other party, not yourself. However, by improving your skills and being able to argue and negotiate professionally will boost your business confidence tenfold.

Having confidence when walking into a negotiation means that you will be able to concentrate on the issue at hand, not worrying about whether the other party is out-manoeuvring you. The ability to confidently make a presentation and provide offers and counter-offers has been shown to garner better results. Confidence in business helps to win many boardroom battles.

You will build respect

Having effective negotiation skills will build respect in the eyes of your competitors, suppliers and staff. Having the respect of your employees is vital for a successful small business, as your team is most likely small and close-knit. If they respect their employer, they will most likely work harder and be more productive.

Being respected in your industry is another benefit of having sound negotiation skills.

The impression you leave after a negotiation can have a lasting effect on how you are viewed in your industry, so it is best to be able to have a positive impact. Being able to negotiate professionally and without incident will more likely result in respect from vendors, partners and clients.

Final thoughts

The simple fact of the matter is that it is better to be seen as intimidating rather than a pushover at the negotiation table. Your ability to confidently present your case will have a positive effect on your reputation in your industry, and will ultimately work toward achieving your bottom line and end goal. Work on your negotiation skills and you will see your business grow from strength to strength.

Amy Galbraith is a junior writer at Rogerwilco. She has had a passion for professional writing since graduating from the University of KwaZulu-Natal with a Masters degree in English Literature. She now writes compelling copy for an exciting variety of clients, and enjoys writing on topics including education, finance and millennial issues.

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4 Black-Owned Businesses Participating in This Enterprise Development Programme That Are Growing – Fast

The Department of Small Business Development (DSBD) and Property Point have joined forces to take 16 small to medium-sized, black-owned, businesses, through a life-changing enterprise development programme.

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The Department of Small Business Development (DSBD) and Property Point have joined forces to take 16 small to medium-sized, black-owned, businesses, through a life-changing enterprise development programme.

In its first three months of operation, this programme has already seen incredible results with an average growth rate of 27% per business,  R17,8million in contract secured and 21 direct jobs created. This is a unique collaboration in that it is set up specifically to encourage access to markets for the beneficiary businesses and is the first of its kind in the industry.

But who are the people behind the numbers?  Meet four out of the 16 business owners , Thabiso, Falvia, Malusi and Mandla taking full advantage of this opportunity.

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Entrepreneur Today

How WordPress Can Help Your Small Business

WordPress is an amazingly large platform filled with incredible tools from useful plugins to intriguing extensions. It’s a platform for bloggers, social media influencers, and increasingly, small business owners.

Josh Althuser

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WordPress is one of the largest content management systems available. In fact, it powers nearly 30% of all US websites. Its ease of use and a open-source nature has prompted the platform to become overwhelmingly popular.

For many, WordPress is an invaluable resource that makes website management simple and promotes their brand easily. It is Little Wonder then that so many businesses use WordPress to handle their website and online presence management. Even though it is very popular, learning WordPress is an entirely different task.

Not many small businesses can afford to have a WordPress developer. In that case, it is important for many owners to learn as much as they can about WordPress.

Achieving effective market growth

There are those who still wish to use traditional services but are usually dumbfounded by the price and time requirement for making custom websites outside of the platform.

The abundant array of tools and applications makes using WordPress simple but effective for market growth.

For many businesses just starting out, getting traction and marketing growth are very difficult and can be taxing experiences if done by hand.

Related: 7 Ingredients Of Small Business Success Online

With a platform like WordPress achieving a beautiful website and pushing a brand is much simpler and easier than trying to do everything yourself.

Optimising your website with SEO

One of the most important aspects of business writing on a website is search engine optimisation or SEO. WordPress fortunately comes with a number of plugins that makes SEO very simple such as Yoast.

This service scroll through text and automates the SEO process to make sure your content is pushed to the best of its ability while also giving your brand the most exposure it can possibly take.

SEO is a very taxing and tedious process for many small business owners and the WordPress platform makes it simple.

Monitoring your website and developing leads

There is also the issue of monitoring who is coming to your website and who was looking at your products. again, on the WordPress platform there is the Google analytics plugin which allows owners to analyze who’s coming to their website and for how long.

This can be used to determine if your marketing or branding is effective and can determine what things need to change to increase exposure.

For small business, exposure is everything and awareness is the key to a successful business.

Increasing site security

Keeping a site secure is another main issue for people who run their own website and luckily WordPress has a plug-in for that.

Vaultpress, the premier security plugin, keeps your website secure and in the event of a catastrophic failure it can restore the entire site.

Business owners often fear their website crashing as it would reduce the amount of traffic it could garner and may interrupt their business practice. The WordPress platform has many tools which prevent loss of data or breaches of security so that your business can continue to run smoothly.

The benefits of using WordPress

These tools, mixed with a host of other utilities, make WordPress the premiere platform for websites for businesses of any size.

With its integration software you can automate messaging, simplify marketing and, optimise the speed of your website to give users an incredible experience without the cost of a full development team.

The technological age requires that all businesses must have a website or at least a web presence of some kind. it has been shown time and time again that a website is the best way to make a big impression on the consuming public.

Related: 10 Online Marketers To Watch In 2018

Time, as it moves slowly forward, shows us that the world will revolve around the Internet and technology. A web presence then, is not just a good idea or a trendy notion, but rather imperative to stay competitive in the future. To that end, there is no better platform to create a website on than WordPress.

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Government Funding

New Fund For Small Businesses To Be Developed

Government has allocated R2.1-billion toward the development of small- and medium-sized businesses.

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Driven by the Departments of Small Business, Science and Technology and the National Treasury, it was announced during the 2018 budget speech that entrepreneurs could unlocking funding for their businesses through a new funding initiative.

What is the new Fund?

Minister of Small Business Development, Lindiwe Zulu, explains where the fund stands and how it will work:

“The Fund will be operational during 2018/19 financial year but the planned disbursement of the funding will be the beginning of 2019/2020 financial year.”

She says R1 billion has already been transferred to the Department of Small Business Development from the national fiscus.

“The Department of Small Business Development together with National Treasury and Department of Science and Technology are working with the Government Technical Advisory Centre (GTAC) to develop the architecture of the Fund where issues around the management of the Fund will be considered,” she explains.

Related: Government Funding and Grants for Small Businesses

Who will the Fund be for?

“The Fund is targeting high growth businesses as our research on the ecosystem shows that there is a lack of funding of enterprises that are at an ideation and early start-up phase,” Zulu explains.

Her department together with the other participating arms of government, will identify areas of collaboration across research, mentorship and training of enterprises on financial management.

“The work that is being undertaken now will assist government to decide on how the fund will operate, but the government is conscious of the economic environment and would not look at setting up a completely new structure that will add to operational costs,” she says.

Addressing parliament on the fund, the minister said the financial mandate of the fund will be informed by the exercise that is being conducted through GTAC.

“Government is looking at having this fund as a soft loan which will provide affordable finance to small businesses and the emphasis will be more on ensuring that the Fund is sustainable rather than profit maximisation,” she explains.

Related: 11 Uniquely South African Business Ideas

How to apply for funding

Contact the following departments if you would like to access a portion of R2.1 billion:

Department of Small Business Development

  • Address: 77 Meintjies Street, Sunnyside, Pretoria
  • Tel: (+27) 861 843 384
  • Email: sbdinfo@dsbd.gov.za for information on the department and its services.

Department of Science & Technology

  • Address: DST Building (Building no. 53) (CSIR South Gate Entrance) Meiring Naude Road, Brummeria
  • Tel: (+27) 12 843 6300
  • EmailIsaac.Ramovha@dst.gov.za or zama.mthethwa@dst.gov.za for information and brochures about the department’s scope and funding.

National Treasury (GTAC unit)

  • Address: 40 Church Square, Pretoria
  • Tel: (+27) 012 315 5944 or (+27) 012 315 5645
  • Email: info@gtac.gov.za for information from the Government Technical Advisory Centre who will manage the small business fund for National Treasury.

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