A reflection on “Winning Angels: The 7 Fundamentals of early stage investing” by: David Amis and Howard Stevenson
Negotiating is not for the faint at heart. You truly have to be able to have a poker face, know your worth, understand the terms and know when to walk away.
Amis and Stevenson describe two types of people: those that negotiate and those that do not.
Chapter 37: Those that do not
The #2 reason really hit home: “They are concerned about the efficacy of a relationship based on trust that starts with a fight for money and/or control.” That is major! Negotiation should be considered a fight. However, some people have a way of turning it into just that.
Chapter 38: Those that do negotiate.
The #3 approach is probably the safest for most people: “Get someone else to negotiate (essentially a negotiating strategy used by a non-negotiator”. This goes back to my last reflection on structure. Having a seasoned, component attorney will work wonders.
I have had my fail share of negotiation and it is tiring. I’ve negotiated the terms of a learning management system, media projects, salaries, etc. The most draining negotiation was for a house that I purchased. After several rounds I walked away. Much less for the reason of efficacy or the concern of a strained relationship (which was irrelevant in this case), but more on about the unreasonable back and forth on the terms. I ended up looking up the status of the house and it did eventually sell… after being on the market for 5 months and many reductions in price.
There is an art to hold out for the terms that you want, but there is also an art to walking away.