{"id":28256,"date":"2021-03-07T13:16:43","date_gmt":"2021-03-07T17:16:43","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=28256"},"modified":"2021-03-16T12:25:32","modified_gmt":"2021-03-16T16:25:32","slug":"the-art-of-the-deal-11-steps","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/","title":{"rendered":"The Art of the Deal: 11 Steps to Business Success"},"content":{"rendered":"\n

What are the 11 steps from The Art of the Deal<\/em>? What can you learn from Donald Trump’s approach to business negotiation?<\/p>\n\n\n\n

In 1987, Donald Trump wrote a book about 11 principles that have guided him through his business decisions. The 11 steps of The Art of the Deal<\/em> encapsulate these principles in the context of Trump’s real estate projects.<\/p>\n\n\n\n

Keep reading for Donald Trump’s The Art of the Deal<\/em> 11 steps.<\/p>\n\n\n\n\n\n\n\n

The Art of the Deal<\/em>: 11 Steps to Business Success<\/h2>\n\n\n\n

Trump loves making deals. Profits motivate him, but the challenge and fun of deal-making drive him even more. Beyond his natural aptitude, he attributes his success to 11 steps in The Art of the Deal<\/em>.<\/p>\n\n\n\n

Principle #1: Aim High<\/strong><\/h3>\n\n\n\n

The first of The Art of the Deal<\/em> 11 steps is to aim high<\/a>. Many people limit their goals because they\u2019re afraid of making big decisions and, ultimately, afraid of success. <\/p>\n\n\n\n

While his father built low- and middle-income housing in Brooklyn and Queens, Trump always had his sights set on more glamorous and profitable buildings in Manhattan.<\/p>\n\n\n\n

In order to think\u2014and achieve\u2014big, you need total focus. <\/strong>Many successful business<\/a> people possess a \u201ccontrolled neurosis,\u201d an obsessive drive and single-mindedness that they channel into their work. <\/p>\n\n\n\n

Principle #2: Prepare for the Worst<\/strong><\/h3>\n\n\n\n

No matter how optimistic you are about a deal, you have to be ready for the possibility that it will fall through.<\/strong> If you act conservatively and prepare for the worst-case scenario, you guarantee your success, even if it means settling for slightly less than you initially wanted.<\/p>\n\n\n\n

In other words, if you swing for a home run every time you\u2019re at bat, you\u2019ll often strike out. But if you make the most of every pitch, you can make steady progress by getting to first, second, and third base. <\/p>\n\n\n\n

While building a casino in Atlantic City, Trump delayed construction until his gaming license was approved, even though he had to pay carrying charges on the property in the meantime. He could\u2019ve started construction while he waited for the license, but if he didn\u2019t get approved then he\u2019d have lost millions on the construction costs. Paying the carrying charges cost him a little more in the short term, but it was worth avoiding the risk of losing even more. (We\u2019ll talk more about the Atlantic City project in Chapter 8).<\/p>\n\n\n\n

Principle #3: Have a Backup Plan<\/strong><\/h3>\n\n\n\n

Always have a plan B<\/a>, plan C, and even plan D\u2014and don\u2019t get too attached to any one of them. <\/p>\n\n\n\n

The majority of deals fall through, so your long-term success depends on your ability to be flexible and change course if need be. <\/strong>When you need to pivot to your backup plan, you won\u2019t waste valuable time coming up with an alternative and figuring out how to approach it\u2014you\u2019ll have had it in mind the whole time. <\/p>\n\n\n\n

Trump\u2019s original plan when he bought a large undeveloped site in Manhattan was to build middle-income housing. But when the city\u2019s public housing subsidies dissipated, he agilely shifted to his backup plan of building a convention center on the site. (More on the 34th Street convention center in Chapter 5.)<\/p>\n\n\n\n

Principle #4: Know Your Target Audience<\/strong><\/h3>\n\n\n\n

Successful people know their audiences. This is true for movie directors, authors, salespeople, and real estate developers. Anytime you\u2019re creating or marketing some kind of product to other people, you need to know who you\u2019re targeting, what they want, and how they think. <\/strong><\/p>\n\n\n\n

Trump believes that understanding your target audience is an instinct\u2014and that he has it. This is why Trump seldom bases decisions on marketing surveys or consultants; instead, he asks people he trusts to gauge others\u2019 opinions and ultimately goes with his gut. <\/p>\n\n\n\n

By the same token, Trump doesn\u2019t give much credence to critics. For example, critics didn\u2019t like the size and design of Trump Tower (as we\u2019ll discuss in Chapter 7), but Trump was confident it would appeal to his target audience of renters and shoppers. <\/p>\n\n\n\n

Principle #5: Have a Bargaining Chip<\/strong><\/h3>\n\n\n\n

There\u2019s an inevitable power dynamic in deal-making: If you\u2019re in a position of strength, you can push the other party to concede more.<\/strong> Sometimes circumstances naturally put you in the position of power\u2014but sometimes you <\/em>can gain power by making the other person think she <\/em>has the power. <\/p>\n\n\n\n

When you understand the other party\u2019s perspective, wants, needs, and weaknesses, you can pitch the deal in a way that makes it seem like a win-win<\/a>. You don\u2019t have to ask for less, you just have to reframe it. You need to be creative, and you need to be able to sell it. Understanding your opposing party is just as important as understanding your audience. <\/p>\n\n\n\n

For example, when Trump was pushing the New York City Planning Commission to approve his plans to renovate the Commodore Hotel, he got the Commodore\u2019s owners to announce that the hotel would be closing. This helped him convince the city that it was in the city\u2019s best interest to approve the plans and reopen the hotel rather than letting the building sit vacant and boarded up. <\/p>\n\n\n\n

Principle #6: Buy Good and Make It Better<\/strong><\/h3>\n\n\n\n

\u201cLocation, location, location\u201d isn\u2019t about buying the best location at a premium cost\u2014it\u2019s about getting a great deal on a location you can enhance through marketing and psychology. <\/strong><\/p>\n\n\n\n

To do this, you must recognize assets that you can play up. For example, a waterfront view gives a location great potential even if the neighborhood is in poor shape. Even if you don\u2019t have the means to change the neighborhood, you can focus your marketing on the assets and create an image of a one-of-a-kind waterfront location.<\/p>\n\n\n\n

If you market well and succeed in attracting influential, wealthy, and fashionable people, then you\u2019ve already enhanced the location; presumably more change will follow. In other words, marketing makes a location <\/strong>appear<\/em><\/strong> more desirable, which leads to changes that actually <\/strong>make <\/em><\/strong>the location more desirable. <\/strong><\/p>\n\n\n\n

Principle #7: Promote <\/strong><\/h3>\n\n\n\n

Be your own publicist. You know your product<\/a> best, so spread the word about how great it is, because it doesn\u2019t matter how good your product is if no one knows about it. <\/p>\n\n\n\n

Promoting your work through the media is more economical than traditional marketing<\/a>: It costs money to take out print or broadcast ads, but if the paper runs a story about your project it costs nothing. Plus, people are more likely to be skeptical<\/a> of advertising than of a third-party report. <\/p>\n\n\n\n

Don\u2019t aim for negative press, but use it to your advantage if it occurs. Bad publicity brings more attention and, if you leverage it, that can help business. <\/p>\n\n\n\n

Use and understand the press. The media wants a good story, and you can make a good story even better if you add an element of novelty, boldness, or controversy; Trump endorses what he calls \u201ctruthful hyperbole,\u201d or harmless exaggeration. (Shortform note: Tony Schwartz, the book\u2019s ghostwriter, has said that Trump justified lying<\/a> by calling it \u201ctruthful hyperbole.\u201d)<\/p>\n\n\n\n

When you talk to the press, know the story you\u2019re selling. Even if a reporter asks a tough question, you can always frame your answer positively. Promote yourself with enthusiasm and bravado that can infect others. Know your audience, including what they want to see and hear.<\/strong> <\/p>\n\n\n\n

Principle #8: Fight If You Think You\u2019re Right<\/strong><\/h3>\n\n\n\n

The more successful you become, the more people will try to take you down out of envy and spite, so you have to stand up for yourself. Don\u2019t be afraid to fight for what you think is right, even if it means offending some people in the process. You may not always win, but if you stand up for what you believe<\/a> in, you give yourself a chance of winning, and you can feel confident that you did all you could.<\/strong><\/p>\n\n\n\n

Trump even fights when it costs him more than he may gain. He doesn\u2019t necessarily recommend that everyone takes that approach, but he attributes it to his personality. <\/p>\n\n\n\n

Principle #9: Have a Good Product<\/strong><\/h3>\n\n\n\n

All the marketing and bravado in the world falls flat if you don\u2019t have the substance to back it up. You may be able to fool people into believing you for a little while, but they\u2019ll eventually catch on if you can\u2019t deliver on your promises. <\/p>\n\n\n\n

A strong product is the difference between appealing marketing and real success<\/strong>. <\/p>\n\n\n\n

When Trump renovated the Commodore Hotel, he pushed the banks and the city to get on board by emphasizing that the hotel\u2019s success would be critical to revitalizing the neighborhood and giving the city an economic boost. He was still a novice developer, and he knew his credibility depended on executing the project well to deliver on his promises.  <\/p>\n\n\n\n

Principle #10: Keep Costs Low<\/strong><\/h3>\n\n\n\n

Don\u2019t hesitate to spend money when things are worth the expense and truly add value to your work, but never spend more than you have to.<\/p>\n\n\n\n

Trump challenges contractors when he feels they\u2019re overcharging him even $5,000\u2014in a multimillion-dollar project, this is pennies. But pinch enough pennies and they\u2019ll add up to dollars in your pocket. <\/strong><\/p>\n\n\n\n

Principle #11: Enjoy the Ride<\/strong><\/h3>\n\n\n\n

Finally, the last (but not least) of The Art of the Deal<\/em> 11 steps is to focus on the process<\/a> and not the material gain. The money is an undeniable bonus, but the pleasure comes in the sport and the art of deal-making. Don\u2019t worry too much about what\u2019s in the past or future\u2014just enjoy the present.<\/p>\n","protected":false},"excerpt":{"rendered":"

What are the 11 steps from The Art of the Deal? What can you learn from Donald Trump’s approach to business negotiation? In 1987, Donald Trump wrote a book about 11 principles that have guided him through his business decisions. The 11 steps of The Art of the Deal encapsulate these principles in the context of Trump’s real estate projects. Keep reading for Donald Trump’s The Art of the Deal 11 steps.<\/p>\n","protected":false},"author":7,"featured_media":15933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,45,43],"tags":[225],"class_list":["post-28256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-books","category-business","category-self-improvement","tag-the-art-of-the-deal","","tg-column-two"],"yoast_head":"\nThe Art of the Deal: 11 Steps to Business Success - Shortform Books<\/title>\n<meta name=\"description\" content=\"In 1987, Trump wrote a book about the principles that have guided him through his business decisions: the 11 steps of The Art of the Deal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Art of the Deal: 11 Steps to Business Success\" \/>\n<meta property=\"og:description\" content=\"In 1987, Trump wrote a book about the principles that have guided him through his business decisions: the 11 steps of The Art of the Deal.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-07T17:16:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-16T16:25:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/10\/Nudge-economics-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1696\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"The Art of the Deal: 11 Steps to Business Success\",\"datePublished\":\"2021-03-07T17:16:43+00:00\",\"dateModified\":\"2021-03-16T16:25:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\"},\"wordCount\":1629,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/10\/Nudge-economics-scaled.jpg\",\"keywords\":[\"The Art of the Deal\"],\"articleSection\":[\"Books\",\"Business\",\"Self-Improvement\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/the-art-of-the-deal-11-steps\/\",\"name\":\"The Art of the Deal: 11 Steps to Business Success - 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