Preparing for negotiations
Entrepreneurs forming a company will have to negotiate a variety of deals and agreements with venture capitalists, suppliers and more.
Gary Kaplan, an attorney, offers several tips to business owners in an article for StartUpNation. First, entrepreneurs should ensure they arrive to negotiations well prepared. In order to do so, entrepreneurs should write down what they want out of the deal and what their bottom line is.
It is best to start with the simpler, less contentious issues so that the other side will get comfortable saying yes. Also, it is natural to want to reciprocate and often, in order to get concessions, one must give them as well. Entrepreneurs should try to find things that are of value to the other side that don’t cost their own business too much. It is also natural to place high value on fairness, so make sure that the offer does not include any outrageous demands that would offend the other side, Entrepreneur magazine contributor Scott Halford wrote.
No one likes to lose, so do not make an opponent look or feel bad. Sincerity is of the utmost value. Effective negotiations take time, so be patient, look for creative ways to find a way to benefit both sides and ask for help from a professional if necessary.