Negotiation Tips for Startups
Entrepreneurship is a series of negotiations among different parties like suppliers, employees, venture capital firms, tenants, and customers. It requires that you know when to change your negotiating style. Sometimes you need to be tough but there are times when you need to compromise.
You are already familiar with general negotiating tactics like low-balling and silent treatment. It is now appropriate to learn different tactics for different parties.
With Suppliers
As a startup company you do not have enough leverage or advantage to demand lower prices because your starting volume is very low. It may appear you do not have any choice than to agree with the price set and simply ask for small discounts.
The first thing you need to do is to make these suppliers believe in the promising future of your business. To do this, you must have a powerful presentation backed by realistic financial projections. If you manage to impress your suppliers, they will start to lower their defenses and be more flexible with their terms.
Suppliers love to hear “long-term partnership” and I’m sure you do also. Make your promise credible by signing long-term contracts. To make it more appealing you can buy supplies for the next two years. The catch is you demand to spread payments and ask for longer payment terms.
With Landlords
If you need to get rent a commercial office space, The Texas Property Lawyer lists some issues that should be negotiated, many of which are applicable regardless of the state you operate in.
