Poker Matters2

9 NEGOTIATING PRINCIPLES FOR INVESTMENT SUCCESS

WHAT ARE THE UNDERLYING PRINCIPLES THAT YOU SHOULD BE USING IN A NEGOTIATION?

It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors because these principles and techniques will always work–whichever side of the negotiating table you happen to be sat on.

Some of the following tactics take a little skill and practice to master, but for the most part, they’re all very straightforward points that anyone can follow, regardless of your personality or professional background. These nine crucial points build on insightful observations of human psychology and alert you to the little things that make all the difference.

Poker Matters2

1. EMPATHY IS CRUCIAL - EMOTIONS ARE HARMFUL

Be understanding of the other side’s position and do not let your emotions either derail your strategy or cause offence – remember that you’re dealing with another human being.

2. UNDER-PROMISE AND OVER-DELIVER

This is an easy way to both avoid overstretching yourself at the outset and to create a feeling of gratitude. 

3. THE GENERAL COMMANDS FROM THE REAR

Remember that it’s more important to be behind the scenes – taking advantage of all the intelligence you can gather about the scenario – than it is to be on the frontline, exhibiting aggression without knowing the full picture. You can always use your consultants to test the waters, and they can agree on principle with the other part, but subject to your approval.

4. SOME INFORMATION MAY BE DISCLOSED LATER

If you are not comfortable, you can keep certain points back until negotiations have progressed a little further.

5. TAKE TIME TO ANSWER

Don’t feel pressured to respond, instead give yourself time to think through your options.

6. MAINTAIN PRESSURE, PACE AND (PERCEIVED) COMPETITION

When it comes to your end of the negotiations, however, there’s no harm in applying a slight pressure to your opposite number.

7. YOU HAVE THE DO-NOTHING ALTERNATIVE

Remember that it’s never a binary situation since there’s always the middle choice of doing nothing at all.

8. TRUST YOUR GUTS

Our instincts are usually telling us that something is wrong, or right, at a subconscious level. This is not magical thinking and it’s not unscientific – instincts are worth paying attention to.

9. IN A GOOD NEGOTIATION EVERYBODY WINS

A balanced process leads to a satisfactory outcome for all involved and sets up further possibilities for the future. 

So the next time you find yourself thrashing out those all-important heads of terms, be sure to bear these nine negotiation principles in mind.

Poker Matters2

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form
auction matters2

Who Decides Your Company’s Value?

In the past weeks we have established why valuations are helpful, when it makes sense to get your venture evaluated and what are the most common valuation methods for revenue generating companies…
maker marketer & manager

The Trinity of Management

WE ARE MAKERS, MARKETERS AND MANAGERS We believe that in order to deliver amazing results a company must excel at 3 things
Thank You Cake Matters2

The Cheesecake Family

First of all, thank you for your kind donations towards the Cheesecake Family in Kyiv! As you probably know, one of our clients, Cheesecake Family, re-opened in Kiev despite the still difficult…
paper boat matters2

101 Startup Stages

The startup life cycle has 6 stages, no wait 5, no, another website said 7 stages and then if you actually read The Lean Startup by Eric Ries then you will have…
EIS (ice) Matters2

EIS

In order to encourage investment into startups and early-stage businesses the UK Government has created a tax relief scheme called EIS: Enterprise Investment Scheme. This takes the form of...

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form
Measure Matters2

KPIs

It is generally agreed that four to ten measurements…
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments