Tag Archives: negotiation

10 Ways to Cut a Crappy Deal

TMBA 239: 10 Ways to Cut a Crappy Deal
Date: 2014-04-10
Link: Tropical Talk Radio
 
Equity in a small-business owner’s hands can be a very dangerous thing.
Don’t give up cash in the near term for equity (as an employee).
Having a minority stake in a small business is almost always a bad idea.
When you cut a deal in the beginning you have to have the foresight on how that is going to play out in the end.
Equity is only activated by power.
Your ownership stake is only worth what you can get for it.
You control the asset you control the destiny.
Partnering most times is inherently a sign of weakness.
Don’t pay for something in equity that you can pay for in cash.
Handshake deals are no good.
Don’t spread yourself too thin.
Focus on the main event.

The Art of Negotiation

Title: The Art of Negotiation
Date: 2007-10-31
Speaker: Stan Christensen (Arbor Advisors)
Link: Entrepreneurial Thought Leaders
 
Conventional wisdom about negotiation is often wrong.
Almost all negotiations in life repeat (you see the person more often than once) yet most people negotiate as if it is a one time deal.
Natural talent helps with negotiation but education helps a lot.
There is hope for everyone in being effective at negotiation.
Tactics shouldn’t be your primary method of negotiating.
Figure out how to expand the pie as opposed to just dividing up the pie.
Be open to questioning your assumptions.
People that spend time together have a hard time not questioning their assumptions.
Fundamentally negotiation is about how to have relationships and manage them effectively.
Criteria are objective standards that are independent of what either side wants.
Precedent is always a criteria you can use.
It is important to base your agreement on things that are objective not just what one party wants or another party wants.
Listening isn’t just a nice thing to do. It can be extremely persuasive in negotiations.
People often have more in common than they think.
Agreements are worked out within the context of relationships.
If you’re good at relationships you’re good at negotiation.
There is no objective measure of success in the War on Terror.
Most people don’t systematically prepare for negotiations which is a big mistake. There is a direct correlation between how much somebody prepares and how well they do in negotiations.
Never lie and there are no exceptions.
Can you get stuff done? If you’re trustworthy it is easier to get stuff done.
Apologize more. It doesn’t cost you anything.
It is much easier to find out what you can do and what you can change than what they can do better and they can change.
Stay in the game.
Give them extra. There are always opportunities in negotiations to make it a little bit better for the other side. People are surprised and reciprocate.
You can make it better for them without making it worse for you.
If somebody is going to lie to you then the last thing you want to do is attribute something to them.
Always have a BATNA (Best Alternative to a Negotiated Agreement) going in.
There are a lot of gender differences in how people approach negotiation.
Look at issues as a package rather than going issue by issue. Look at negotiations as packages of issues.

Negotiations On and Off the Field

Title: Negotiations On and Off the Field
Date: 2007-05-22
Speaker: Steve Young, Stan Christensen (Former NFL Quarterback)
Link: Entrepreneurial Thought Leaders
 
Negotiation is all about people.
Over-prepare.
You want people to do great work for you. Money isn’t always the best way to pay them.
Humans tend to do the most they can with the least amount of effort.
Never give an excuse.
People want accountability.
You will lose by not taking ultimate accountability.
People will not give in if you don’t give them a soft place to land.
Make it about them.
Negotiation is about managing relationships.
Hubris is very damaging.
Everybody has unique and individual needs.

Secret to Successful Negotiations

Title: Secret to Successful Negotiations
Date: 2006-05-02
Speaker: Joel Peterson, Stan Christensen
Link: Entrepreneurial Thought Leaders
 
You have got to this point in your life through negotiation.
Negotiation is how you navigate your way through life. It is a series of conversations.
Negotiation is the whole series of conversations and trade-offs you’ve made to get where you are.
A successful negotiation is to have successful, effective conversations with people to get what you want and to help them get what they want at a price that is acceptable to both.
Price is not necessarily monetized.
You only get crushed if you allow yourself to be crushed. You have to grant them the power to crush you.
In a successful negotiation you should be able to describe the other party’s interests as effectively as they can.
Saying what the other party wants to them helps them relax.
Do not yell in negotiations.
Establish your emotional baseline.
Base your price on analysis.
Say what you mean.
Think about the reputation you want to have.
Negotiations are all serial. They are not episodic. Your reputation follows you around.
A lot of commercial negotiations do not have trust but have mutual mistrust. Recognize that.
Trust is the lubricant for successful business transactions, for managing a career, and for managing relationships.
There is power in trust.
Trust is a function of character, competence, and empowerment.
Move to where you are trusted and where you can trust others.
If you have to refer to legal agreements then you’ve made your life shallower and you’ve made litigation more likely.
Attorneys are necessary. They are important.
A lot of attorneys have big egos. That can defeat what you’re trying to do. Find one whose ego is subordinate to the objective.
For your career all the things you think are important now (in college) are the things that aren’t.
The most important thing you do (for your career) is to choose a mentor.
Think about career–not job.
Getting somebody to lose is not a win for you.
Look at how you can help the other party win (at a price that works for you too).
You can both win by letting the other party have their victory.
With family members you can do win/lose rather than win/win.
Whenever you have a really long term relationship (such as with family) you want to make sure the other party wins.
Think beyond what people are asking to what they really want.
You’re not trying hard enough if you don’t have some failures in business.
Sleep on things.
Some things you only learn with experience–with failure.
Make clear where you stand.
Real estate contracts aren’t valid unless they’re in writing.
There are not very many people at the top of any industry. One mistake will undo your reputation.
People pick up non-verbal cues.
Mentors are obvious.
Make deposits (be nice to them, help them out) when you don’t have to negotiate. That will help you when you negotiate later.
Try to set the price early on (one you think is fair). Setting a price is an anchoring move. It can be difficult if the other party sets it.
It is VERY difficult to rebuild trust.
Everybody has something to teach you.