Place your bets

As a business, an investor or an individual we must decide where to place our bets on a daily basis. Whether deciding where to go on a first date or where to invest $1 million every decision that we make sets a course of action that at times is irreversible. If you've ever played or watched poker you will notice that the best players utilize two basic processes for making a decision on where to place their bets and how much to bet.

1. What are the odds? What are the odds that you have the best hand, in other words the position of power. Do you have the big stack or will you be bullied by the larger corporation if the negotiations become contentious? What are the odds of you having to go all in and lose it all if your opponent pushes back or comes over the top?
2. How does my opponent play? Watch how your opponent plays. Are they loose and aggressive or very tight? If you know that your opponent plays very loose and aggressive than you must be prepared for them to come at you with ridiculous offers or bets because they want to test you to see if you will fold. If they play very tight than you should prepare for a very numbers driven process where the financials make the decision, not emotion.

Negotiation is an art form. How hard do you push? When do you push? At what point are you going to push the opportunity out the window? We all make mistakes the first time around, but here are some lessons that I have learned and practices that I now employ to help in those tight moments.

1. Be prepared. The more prepared and knowledgeable you are the more comfortable you will be in any negotiation to quantify and qualify any terms that you are requesting.
2. Be calm. Never, ever lose your cool. You will be tested, pushed and manipulated as the younger or less experienced party. That is ok, let them push, don't react... just take everything in and think before you speak.
3. Be patient. There is no rush. Don't feel like you need to make a decision in that moment. You can always use language like "I have to pass this by my board, but we will take everything into consideration." Waiting a week to provide a response is not going to kill a deal, a poor, unprepared response will.
4. Be willing to walk away. No matter the position or lack of strength your ability to walk away without your business being significantly compromised is the greatest negotiating power that you can have. Never put the success or potential failure of your business or job in the hands of one person, vendor or partner.

The question that will linger here is "how can I prepare for something I have never done before?" Well, I will beat the horse once again to tell you that it comes down to your team. Surround yourself with experienced individuals who will challenge you when you are missing something, encourage you when you are doing well and support you when you're in uncharted territory.