Receiving VC fundraising for your startup will be one of the biggest things you do in your business career. Therefore, you shouldn’t leave anything to chance. You should take every chance you get to elevate your negotiation skills and hone your style to get the best possible outcome. Here are 5 tips you shouldn’t miss.
Manage expectations – Make sure both you and your counterparty are on the same page throughout the negotiations. Ensure you both have the same expectations around timelines and when deliverables will be completed. This prevents frustrations for either side and helps to build trust.
Feed their ego – Present yourself as friendly and approachable. Get to know your VC and what they like. When appropriate stroke their ego a little but not too much. People a more likely to negotiate softly with someone they like.
Communicate – Similar to managing expectations is communication. There must be always direct and open lines of communication between yourself and the VC.
Understand each other’s styles – Everyone has their way of conducting business. Getting to know someone’s unique way of working allows you to adjust your style to complement theirs.
Never bluff – Bluffing is not the right approach. If they call your bluff you are left with nothing or at the very least in a worse position. If they find out you’re lying you risk losing their trust, which is something you won’t be able to easily earn back.
Elevating your negotiating style with these 5 tips should increase the chance of receiving funding and achieving more desirable terms.