Negotiation Expert: Founders Should Focus on 1 Key Deal Aspect, Not Money

Negotiation expert Kristen Prinz suggests that founders should concentrate on a single key aspect of a deal that is not related to monetary figures. Prinz, founder of The Prinz Law Firm and author of the forthcoming book "The New Rules of Negotiation," states that successful deals are cultivated long before negotiations begin.

Prinz encourages founders to first clarify their ultimate objectives rather than commencing negotiations with a fear-based mindset or a predetermined minimum acceptable outcome. "Focusing on what you're willing to accept is equivalent to starting from a fear mindset," Prinz explained. "It's a worst-case scenario starting point instead of blue sky possibilities."

While founders possess in-depth knowledge of their businesses, Prinz notes they can sometimes lose sight of the long-term vision due to a short-term focus on sales or fundraising. She advises maintaining awareness of the other party's perspective throughout the negotiation process.

These negotiation principles extend beyond major funding rounds or significant contracts. Prinz highlights that founders engage in constant negotiation, whether hiring new employees or establishing partnerships, making skillful negotiation essential for business growth.