Negotiating benefits with a startup can be challenging, but also rewarding. Startups often have limited resources, but also offer more flexibility and creativity than established companies. If you are a freelancer or a contractor looking for better benefits from a startup, here are some tips to help you get the best deal possible.
Before you start negotiating, you need to understand the value proposition of the startup. What is their mission, vision, and goals? How do they measure success? What are their challenges and opportunities? How do they differentiate themselves from their competitors? Knowing these answers will help you align your expectations and interests with theirs, and show that you are invested in their future.
Start-ups are not your usual suspects. The level of ownership is usually higher (by several degrees) and often, you will talk directly to the decision maker. Therefore, forget your usual pitch and focus ONLY on the value that you can provide. Ask about their problems, barriers to growth or puzzles they are solving - in startups, this topic is endless. Can you help with any of the hurdles they are trying to get across? Great, welcome aboard! Selling generic crap? GTFO. It’s that easy and it’s that fast. If that is not something you are comfortable with, you are better off talking to corporates. ????♂?
Negotiating with a startup? Dive beyond numbers. Grasp their mission, challenges, and what sets them apart. It's not just a deal; it's a partnership that aligns visions for mutual success.
Next, you need to identify your priorities and trade-offs when it comes to benefits. What are the most important benefits for you, and what are the ones you can compromise on? For example, you might value health insurance, paid time off, or equity more than other benefits. Or you might be willing to accept a lower rate in exchange for more flexibility, autonomy, or learning opportunities. Make a list of your must-haves, nice-to-haves, and deal-breakers, and rank them in order of importance.
Before you make your proposal, you need to research the market and the startup. What are the typical benefits offered by similar startups in your industry, location, and role? What are the best practices and standards for freelancers and contractors? How does the startup compare to other employers in terms of financial stability, growth potential, and culture? You can use online platforms, networks, and surveys to gather this information. This will help you benchmark your expectations and justify your requests.
Once you have done your homework, you need to communicate your proposal clearly and confidently. Use positive and respectful language, and focus on the value you can bring to the startup, not just on what you want from them. Explain how your benefits align with your goals, skills, and contributions, and how they can help the startup achieve its objectives. Avoid making ultimatums or assumptions, and be open to feedback and questions.
Finally, you need to negotiate creatively and collaboratively with the startup. Don't expect to get everything you ask for, but don't settle for less than what you deserve. Be flexible and willing to explore different options and scenarios, and look for win-win solutions that benefit both parties. For example, you might agree to a trial period, a performance-based bonus, or a deferred payment plan. Or you might suggest alternative benefits, such as mentorship, training, or referrals. Remember that negotiation is a dialogue, not a confrontation, and that the goal is to build a long-term relationship with the startup.
Start-ups play a high-stakes, high-reward game. The founders act on short deadlines with limited capital and high expectations. They need to be flexible and so do you. Want the relationship to last? Align your incentives with those of the startup or suffer the consequences. When working in tedh, you will be expected to adapt frequently, shift gears according to the current necessities and always be ready for the possibility that your services may stop being required at any point. It’s a 7,000 RPM race, and there is zero tolerance for any extra burden, financial or otherwise.