Negotiation Tips For Founders

As any founder knows, negotiation skills is a key ingredient to raising a successful round. Recently, I was interviewed by Nathalie Gregg

to share negotiation tips to catapult your influence and close the deal.

Read on to discover my top 7 negotiation strategies.

Q 1. How do we begin to prepare for successful negotiations?

First and foremost, do your homework. Understand who is in the room, their background, their needs and their position. Be very clear as to your position. What are the red lines, where you are willing to be flexible and where you cannot. What can you compromise on? Understand and be clear on the urgency of this discussion.

Understand and know your own trigger points. Take the personal away from the discussion. You happen to be the designated person negotiating for your company, the other person for theirs. It can be hard to do this in the beginning, especially if this is the first time you have negotiated on behalf of your own startup. It’s so important to master this skill as it gives you perspective, clarity and focus.

Q 2. How do we begin to build trust as a negotiation strategy?

First of all trust yourself. Bring your best mind to the table and consider that those you interact with want the best outcome too. Begin by being warm, welcoming and friendly. Even more so if the situation is stressful and the negotiation has gone on for some time. Communicate clearly and ask open questions, build rapport and try to find common ground early in the conversation.

Q 3. How does active listening strengthen your negotiations?

Active listening is so overlooked as we live in a culture dominated by loud voices and not enough on stillness and reflection. If you are a good listener, you pick up on the context, the bigger picture, what has been said and what has NOT been said. You focus on the speaker, the language, the tone and inflection; the energy and the pace. 

You figure out quickly when the speaker is excited, tired or frustrated and respond accordingly. You minimize the opportunity of speaking out of turn, or saying the wrong thing at the wrong time; or not being clear and causing confusion.  Active listening is very hard work as you are fully present and engaged. Good listeners are respected for their thoughtfulness and wisdom. This is what you want to bring to the table.

Q 4. What role does open ended questions play in negotiating?

Asking open ended questions gives every person in the room the opportunity to learn, gain clarity and to understand the situation. It minimizes assumptions and bias and enables each side to understand the other better. These questions are expansive; they give room to question, inquire and to be curious. Importantly, they help everyone steer clear of confirmation bias.

 Q 5. How do you remain opened minded during negotiations?

This is a personal skill you must develop. Train yourself not to jump to conclusions, catastrophise, and tell yourself stories about the situation that may or may not be true. If you find you do this more often when you are tired, that’s OK, you’re human. Ask for a short break and take a walk around the block. Remain very clear on your end goal and your own position; this is a critical point in the negotiation. Hold your nerve!

In stressful situations we often revert back to behaviors that do not serve us. Once you are aware of it, ask yourself the question; am I open or closed now? Be honest! If we close our minds we have no room for another point of view. Quite unconsciously, you may derail the negotiation. Get to know yourself and be kind as you practice this skill. We can all improve.

Q 6. How do you determine if your negotiation strategy needs to be amended?

If the negotiation is not progressing, the language has become a little entrenched, you notice the body language of the parties stiffen and facial expressions becoming more serious; it is time to change tack. Ask another open ended question to free up some space, follow up by asking further clarifying questions and move on from there.

Q7. How do you determine if your negotiation strategy is a Win! Win!

You will know by the body language in the room if the discussion is moving in this direction. If both sides are giving and taking, finding solutions and making the best effort to move forward; this is a very good sign. If the negotiation is tough, that’s OK too. Open and clarifying questions will tease out fears, anxieties and exceptions. Once there is a level of understanding and respect, it makes everything easier. That does not mean the negotiation will not take time and go on a journey, but it shows professionalism and maturity. A win, win is always the optimal result.

Thanks so much Nathalie for inviting me to contribute to the #leadloudly conversation.