CHAPTER 17 - NEGOTIATING YOUR BEST DEAL

First learn to say NO. Now you're ready to negotiate. Most Entrepreneurs approach the issue of negotiating with great stress and anxiety. This leads directly to weak negotiations or becoming defensive about being asked too many questions. Either way, you lose! In order to avoid this happening to you, make sure you have clearly defined what you are looking for before the negotiations begin. Then…

• Determine which points are worth fighting for.
• Express your objections and questions to any point.
• Get it in writing, leave nothing to verbal agreements.
• Subject everything to your long range goals.
• Pay close attention to what triggers default.
• Establish ceilings and caps. You don't want to be stuck paying huge payments if rates go up.
• Plan for the downside. Attempt to have an "interest only" clause or "skip payment" provision in the event of slow downs.
• Look for no pre-payment penalty or the right to buy back your stock at a fixed price.
• Pay attention to covenants, conditions, ratios, restrictions or other clauses which can have serious long term effects.
• Try to minimize pledging collateral. You may need those assets in the future to raise additional capital.
• Seek professional counsel before you sign anything. Lawyers and accountants may not help you fund your deal, but they can help you spot the small details that may burden you down the road.

Summary
Remember you are out there selling yourself and your company. Be a closer! Only accept "No", as being one step nearer to "Yes". We sincerely hope the material presented here will help you plan for your success and locate the funding that every business needs. Good luck, in your search for funding!

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