What do you do if you're an entrepreneur negotiating a fair compensation package?

3 Be flexible and creative

Negotiating a fair compensation package is not just about the money. You also need to consider other aspects of the deal, such as equity, benefits, incentives, responsibilities, milestones, and contingencies. You need to be flexible and creative in finding solutions that can satisfy both parties and create value for both sides. You can use different techniques to expand the pie, such as bundling or unbundling items, adding or removing conditions, or offering or requesting non-monetary perks. You can also use different methods to divide the pie, such as splitting the difference, using objective criteria, or making multiple offers.

4 Communicate effectively

How you communicate during the negotiation can have a significant impact on the outcome. You need to be confident, respectful, and professional in your tone, body language, and words. You need to listen actively, ask open-ended questions, and show empathy and curiosity. You need to express your interests, needs, and expectations clearly, concisely, and persuasively. You also need to manage your emotions, avoid assumptions, and handle conflicts constructively. By communicating effectively, you can build rapport, trust, and credibility with the other party, and increase the chances of reaching a mutually beneficial agreement.

5 Review and finalize

Once you have reached a tentative agreement, you need to review and finalize it carefully. You need to make sure that you understand all the terms and conditions, and that they reflect what you have discussed and agreed upon. You also need to verify that the agreement is fair, realistic, and enforceable, and that it does not contain any loopholes, ambiguities, or errors. You need to ask for clarifications, confirmations, or modifications if necessary, and document everything in writing. You also need to follow up and execute the agreement as planned, and maintain a good relationship with the other party.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?