The core of negotiation is about navigating uncertainty, and in the event you’re on the earth of startups, uncertainty is one thing you’ve already embraced.
Not like conventional enterprise homeowners with confirmed enterprise fashions, merchandise, and providers, you’re working in an area the place creativity and flexibility are basic to your success.
You’re invested in your corporation on each stage, with extra at stake than most. However in terms of negotiation, the riskiest factor you are able to do is let the concern of devaluing your self maintain you again.
At a human stage, all of us have to really feel valued. For startup founders, this want goes past private validation—it extends to the enterprise you’re constructing. You don’t simply need to be recognised for the worth you carry as a person, you need the worth of your corporation to be acknowledged and exchanged appropriately.
Nonetheless, when concern enters the image, it might result in selections that undermine your negotiation success.
Listed here are 4 methods that the concern of devaluing your self would possibly present up throughout negotiations, and how one can keep away from falling into these traps:
1. Subconsciously negotiating with your self
Should you’re negotiating your first take care of a buyer, it’s straightforward to begin doubting your personal worth.
You would possibly catch your self listening to that pesky inside voice, second-guessing what the shopper will or gained’t settle for. Earlier than you already know it, you’ve already adjusted your supply in your head, reducing your ask or conceding phrases with out even realising it.
This “self-negotiation” is a standard lure and infrequently leads you to just accept lower than you initially meant, costing you enormously. The important thing right here is to remain out of your personal head—let the shopper reply earlier than you begin amending your deal.
2. Concern of shedding the deal
Creator Glin Bayley
In a startup, closing offers can really feel like life or loss of life for the enterprise—generally fairly actually, as getting income within the door may be what retains the lights on.
While you’re working underneath that strain, the concern of shedding the deal might be overwhelming. This concern makes you hesitant to push again on phrases or ask for what you really need.
You are worried that being too assertive will scare the shopper away. However giving in too shortly can scale back the worth of the deal, limiting the potential development of your corporation.
Keep in mind, negotiation is about discovering the precise match for each events and holding agency on key factors helps set up your value, we regularly worth extra what is tough to acquire than that which is well given.
3. Concentrate on worth relatively than worth
Startups usually fall into the lure of considering that reducing the worth is the one approach to safe a deal, particularly after they concern rejection.
This normally comes from a insecurity in explaining the broader worth your corporation gives past simply the worth tag. Because of this, you would possibly scale back your worth too shortly in an effort to shut the deal.
However specializing in worth alone undercuts the chance to showcase the actual advantages you supply—whether or not it’s your progressive strategy, personalised service, or the long-term financial savings your answer gives.
As a substitute of dropping the worth, spotlight the distinctive worth your corporation brings to the desk.
4. Avoiding discomfort
You’ve already embraced numerous discomfort by taking the plunge into the startup world, however negotiation requires you to get much more comfy with it.
Negotiating might be uncomfortable, particularly when the stakes really feel excessive and also you’re going through a possible shopper who holds the important thing to a much-needed deal. The concern of rigidity or awkwardness can lead you to again down too shortly or settle for phrases you’re not pleased with.
However negotiation is supposed to be uncomfortable—it’s the place you appropriately stand your floor, make clear expectations, and finally attain an settlement that works for either side.
Embrace the discomfort as a part of the method.
Concern, whether or not it’s concern of rejection, concern of shedding the deal, or concern of discomfort, may cause you to undermine your personal worth in negotiations. However you didn’t take the leap into constructing a enterprise simply to accept much less.
By making ready totally, speaking the distinctive worth of your corporation, and staying assured in your value, you possibly can overcome these fears and set the stage for profitable offers that replicate the true potential of your startup.
- Glin Bayley is the writer of The Negotiation Playbook (Wiley $34.95), a negotiation specialist, writer and speaker.