Ask Yourself This Pose some creative questions before the deal, and you may find a new way to clinch it.
By Marc Diener
Opinions expressed by BIZ Experiences contributors are their own.
Even though the business world thrives on vigorous innovation,entrepreneurs often overlook the creative side of deal-making. Howunfortunate! Creative thinking can pay the deal-maker bigdividends, both when you're first entertaining a deal, andlater, when you're actually negotiating it.
Initially, creativity will help with the most criticalconsideration of all: making sure you're in the right deal.Before you get too involved, you must discover and consider allyour alternatives. Start by asking yourself the ultimatebig-picture question: "Why am I doing this deal?" Onceyou really nail down the things you want, better ways to get themwill often jump out at you. Brainstorm with these two magic words:"How else?"
For example, an unsophisticated inventor assumes that his onlyoption is to sell a brilliant new idea outright to somemegacorporation for a pittance of a royalty. By reconsidering howelse he could make a profit, he suddenly realizes he couldalso:
- approach competitors of that company;
- find a smaller partner who'll offer better terms;
- wait until he has an irresistible working prototype so he cancut a better deal;
- license just part of the idea;
- take on a second job and finance his own manufacturing anddistribution;
- and/or call an expert such as a patent lawyer for help.
Once you really naildown the things you want, better ways to get them will often jumpout at you. |
Just as you can be more general, you can also be more specific.To examine a deal in more detail, try this little ditty fromRudyard Kipling: "I keep six honest serving men, / (Theytaught me all I knew); / Their names are What and Where and When, /and How and Why and Who." Let's say you're a businessowner with a space problem who thinks the only solution is to makea deal to lease or buy a larger facility. Instead, you may askyourself: What is taking up so much space? Where else can I puteverything? When can I do this? How can I make more room? Whyshould I keep everything? Who can help me?
Considering those questions can generate options: Throw outwhatever is not needed, have a garage sale, give stuff to charityand take a tax deduction, add another story or room to the existingspace, rent off-site storage, or hire a professional organizer. Anyone of these is probably a lot easier (and cheaper) thanmoving.
Later, when you're seated at the bargaining table,creativity plays a different role-as the catalyst for win-winsolutions and the antidote to impasse. For example, you maydeadlock on price, but once you get creative with payment terms andfinancing, everything may fall into place. Again, it's allabout alternatives, and the techniques above will serve you just aswell before your negotiation as during. Just remember to staypractical. Don't let your brainchildren get so complicated thatthey're difficult to explain, document or administer.
A speaker and attorney in Los Angeles, Marc Diener is the author of Deal Power.
