Deal or No Deal? Staying Focused on Your Long-Term Vision
Jamison Ernest
Co-founder/Co-Ceo/Chief Creative Officer/General Partner at Blue Scorpion Investments at Blue Scorpion Investments, L.P.
Deal or No Deal? Staying Focused on Your Long-Term Vision
Something is only worth what someone else is willing to pay for it. There are too many deals out there and not enough buyers or investors for them. This is advice for the founders reading this article right now, don't get all caught up on valuations and lose site of the opportunity to get an investment in your company if you truly need it to survive and grow. It's not worth the physical stress and sleepless nights that come afterwards while you're trying to survive. Most of the time you won't get a 2nd chance with investors if you haven't had exponential growth since the last you met with them. The likely hood is you'll actually end up with a much lower valuation, worse terms or NO deal at all.
Negotiating deals is a very high-stakes gamble, and i've seen too many people I know make negotiation mistakes that have cost the opportunity for a deal altogether. Be smart about it, with some finesse and strategic thinking, you can negotiate yourself a successful deal without the risk of losing it. Don't let the lawyers mess it up with asking for too many things that aren't materially important. The longer they take the more they make!
Know your true value. Before you even begin negotiating, make sure you have a clear understanding of the value you're bringing to the table and make sure it's accurate. What unique skillset or offerings are you bringing to the deal? What sets you apart from your competition? By knowing your worth, you'll be better equipped to make a strong case for what you're asking for and negotiate from a position of strength.
Next, be prepared to compromise if necessary. Negotiation is all about finding a mutually beneficial solution, so it's important to come into the conversation with a clear plan and an open mind. Identify your non-negotiables, but be willing to compromise on other points that are less important to reach a fair deal in a reasonable amount of time that works for both of the parties involved.
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Another key to successful negotiation is active listening. This means not only hearing what the other party is saying, but also actively seeking to understand their perspective and concerns in the deal. By doing this, you'll be better able to tailor your negotiation strategy and find common ground and so know one drops out from deal fatigue.
Make sure you're entering a Win-Win situation for all involved.
If it's not working out, know when to hold em, know when to fold em and know when to walk away. While it's important to be flexible and willing to compromise, you also have a clear understanding of your limits. If the other party is being unreasonable or you're not able to reach a mutually beneficial solution, it may be time to cut your losses and walk away. There will always be other opportunities out there.
Good luck out there, getting a fair deal done is better than losing your company...Jamison
Owner and Director: bodyART Training Studios
1 年One of my absolutely favorite gems from the legendary Christopher Voss involves the “F-word” which is FAIRNESS. Because in many negotiations, people will often make decisions and take action that are actually irrationally working against their best interests simply because they feel that they are being treated unfairly. To counter this, Chris suggests: “Early on in a negotiation, I say, “I want you to feel like you are being treated fairly at all times. So please stop me at any time if you feel I’m being unfair, and we’ll address it.” It’s simple and clear and sets me up as an honest dealer. With that statement, I let people know it is okay to use that word with me if they use it honestly. As a negotiator, you should strive for a reputation of being fair. Your reputation precedes you. Let it precede you in a way that paves success.”