As an Entrepreneur, Hakar Mahmoud says that you will often find yourself in high-stake negotiations with big players in whatever field of work you have ventured into. The process of negotiating deals with these corporate giants can be terrifying, mainly because they have significant negotiating power. You could very easily end up getting the short end of the stick.
Having mentored many companies worldwide, Hakar shares the following tips to help entrepreneurs through this process.
1. Develop a Game Plan
Deals vary with different players. Consequently, you need to have a sit-down with your team and strategize. Assess the risks and come up with negotiating leverage. Then come up with timelines for when you will bring each of these tactics to the table.
2. Hire an aggressive Corporate Lawyer
A lawyer will sober you out, keeping your emotions in check at stages of the negotiation process where emotions run high. A lawyer will also lay out all the significant risks for you and negotiate the appropriate protections. If the deal takes a nosedive, you will need to file lawsuits, and the documents that your lawyer will have drafted throughout the negotiations will act as your insurance policy.
3. Run negotiations through a Lawyer
According to Hakar, entrepreneurs are no match for corporate development guys or sophisticated venture capitalists who do deals for a living. Therefore, it would be best if you got a strong corporate lawyer to do the negotiating and do what you do best, i.e., build companies. Hakar says that a smart entrepreneur will stay above the fracas and let the lawyer run the deal. Additionally, Hakar advises that you do not run any side-bar negotiations regardless of how you think the agreement is going to maintain a good relationship with the other side post-closing of the deal.
4. Choose a strong transaction team
When it comes to business, you are only as good as your team. With an experienced corporate lawyer as the backbone of your team, you can build a team that will add value to your transaction. You need to ensure that your team is up to the task to go up against the corporate mafias.
5. Create a Competitive Environment
Venture capitalist firms take an interest in startups when they notice competition. Everyone wants what they don’t have, and that is what will give you an edge when negotiating a deal. As an entrepreneur, you will be able to strike the best possible deal with respect to price and other material terms.
6. Carry out research
Investigate the history of the people that you are going into a deal with. What is their reputation? Have they been good to people with whom they’ve previously made deals? You don’t want to find yourself in a position where you are ripped off or not paid your value’s worth. You can use the internet to track down entrepreneurs or CEOs who have done deals with your prospects before and decide whether they are people with whom you can do business.
7. Don’t be the first to blink
If you get to a point in the negotiation where an issue arises that requires one of the parties to compromise, Hakar advises that you hold your ground. Compromising undermines your credibility, and you will end up getting a raw deal.
Hakar Mahmoud is a young entrepreneur famous for digital marketing and the first choice for many celebrities and film industries when they need promotions.