The outcome of your negotiations is not set in stone. Neither are they decided purely based on the facts of your business, product and industry. Negotiating is more personable.
The style and approach you take into the room contribute just as much to the outcome as the facts. Here is how I approach my negotiating style.
Embrace the reality – The negotiations are not just to secure funding for your startup. They are the start of a long business relationship. A relationship that will exist for as long as you are both still involved. Don’t do anything in the negotiations that will jeopardise this relationship.
Avoid a win-lose outcome - Don’t forget that you are building a relationship not just trying to win. Don’t push the negotiations beyond a situation where you both win.
Be open and relaxed – Being transparent and calm during the negotiations will build confidence in you and trust between yourself and the counterparty.
Listen more and talk less – Always listen before you speak and listen more than you speak. You learn things by listening to what other people have to say. If you are talking then they are learning something about you.
Have a sense of urgency – First, understand the difference between urgency and rushing or panic. Then act with urgency. This demonstrates both confidence, eagerness to engage and energy to succeed.
The way you conduct yourself during the negotiation is likely to impact substantially not only if you secure funding but the quality of the terms you receive. By refining your negotiation style you can receive better terms and create a stronger relationship.