How Startups Negotiate with Giants and Win

#News(Startup) [ via IoTGroup ]

Headings…
How Startups Negotiate with Giants and Win
Make It Easy To Say Yes
Be Prepared To Say No
Come With Numbers
Don’t Get Shook
Stay Out Of Legal, But Have Legal
Don’t Give Away the Farm
Make a Deal You Can Live With
Joe Procopio

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Here are a few tactics I’ve picked up that have helped me not only get the deal done, but also make it a win for both sides.
We want to keep the deal small and simple.
If you bring anyone a million-dollar deal, their first question is always going to be “What’s the catch?” This totally starts negotiations off on the wrong, skeptical foot.
Look, maybe we can eventually add a million dollars to Goliath’s bottom line over the next two years, but we need to lead with how Goliath is going to make an extra ten bucks on their next customer.
Just like with a minimum viable product, we want to start with a small segment of their customers, on a subset of their offering, for a limited time.
Remember, it’s a small customer segment we’re dealing with — that’s also so we don’t get knocked over.
We need to go into every negotiation with the expectation that Goliath is going to reject us, because most of the time, they’re going to reject us.
There’s no worse way to go into a negotiation than if the other party assumes we need the deal.
And if they catch a whiff of “this is our only shot,” they’ll either totally take advantage of us, which, I remind you, they can do anyway, or they’ll walk away because they don’t want to be tied to a sinking ship, no matter how small.
Now that we’ve got our super easy offer put together and we’re ready to negotiate from a position of just a little more than total weakness, we need to prepare our proposal.
Do not sign any large deal without good legal representation.
We also need good legal representation because we need to stay far away from Goliath’s legal department until after the pilot.
Call it spec work, call it proof-of-concept, call it goodwill, if we’re required to spend money and/or resources to build something custom for Goliath, they need to at least share in those costs

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