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Negotiations as a solo founder

Negotiations as a solo founder

I’ve been part of negotiations related to agreements a few times now in my entrepreneurial career. I’ve been fooled a few times, made decent agreements a few other times.

The first indication that the other party wants to fool you is: they bring more people to the table.

The typical example is: you are doing a partnership agreement with someone and he brings in a person that he trusts to basically manage the relationship for him.

They might not tell you so, but 99% of the times this is done so that the other party has more people paddling in their favor. Now the power dynamics are on their side.

You are a team of 1, they are a team of > 1.

Don’t let this happen. Let just the ultimate decision-maker sit at the table with you (usually, it’s who signs the agreement).

I now catch when the other party is doing this every time and I subsequently offer a worse deal for them (my first deal is always the best).

Thanks,
Mike