Okay, I ended the structure post on talking about negotiations, and here we are. The next subject we are bringing to life is negotiations. Take it or leave it? Is everything negotiable? What is the correct answer? The common factor I see in these vital subjects is timing. The direction the investor takes depends on where they are in the deal. The entire time I was reading this section, all I could think of was Shark Tank and some of the good and bad deals that have been offered during the show’s history. I am attaching a short clip for fun.
Now, back to the book after that short break. Under the title “Best Case Scenario,” winning angels mentions seven things winning investors want when investing. They are as followed:
The ability to share in the winnings
Return of capital as soon as possible
A feeling of having contributed/made a difference
The ability to get out if circumstances change
Those seem so simple to achieve. I find it essential to keep those seven points in mind when dealing with an investor in negations in the entrepreneur position. Next, when it comes to negations, it is super essential to make sure you are very clear in what you want. Giving an unclear message can make the entire process complicated. What do they want, and what do you want. Make sure to know this. Each person wants something, and that is the quickest way to a solution or even ground.