Picture this. You are in a negotiation. The other side pushes hard on price. You know you should hold your ground, but there is a voice in your head: "If this deal falls through, we have nothing." So you concede. And concede again.
That voice is the sound of having no Plan B.
Why companies skip the backup plan
Three reasons come up again and again. Laziness: preparing a real alternative takes time and effort. Naivety: the assumption that the current deal will just work out. Fear: the dread of losing the client or the revenue.
None of these are good reasons. All of them lead to the same result: excessive concessions and deals that hurt your business.
A bad deal is most often worse than no deal
This is worth repeating. A bad deal is most often worse than no deal. A deal with crushed margins, unreasonable terms, or impossible timelines does not just cost you money. It costs you time, energy, and team morale. It sets a precedent that the next negotiation will follow.
Walking away with no deal is painful. Walking away from a bad deal is smart.
What a good Plan B looks like
Your Plan B is the best alternative you have if this negotiation fails. It could be another prospect, another supplier, an internal solution, or even the decision to wait.
The stronger your Plan B, the more power you have at the table. You can push back confidently because you genuinely have somewhere else to go.
How to prepare
Before every significant negotiation, ask yourself: what do we do if this does not work out? If the answer is "nothing," stop. Invest time in building a real alternative before you sit down at the table.
Even a moderate Plan B changes your posture, your confidence, and your results.
The verdict
Always negotiate with a Plan B. It protects you from bad deals, gives you confidence, and fundamentally changes the power dynamic.
This is article #10 in the "Either/Or?" series.
Want to equip your team with strong negotiation strategies? Contact Zenith.