Even though the business world thrives on vigorous innovation,
entrepreneurs often overlook the creative side of deal-making. How
unfortunate! Creative thinking can pay the deal-maker big
dividends, both when you're first entertaining a deal, and
later, when you're actually negotiating it.
Initially, creativity will help with the most critical
consideration of all: making sure you're in the right deal.
Before you get too involved, you must discover and consider all
your alternatives. Start by asking yourself the ultimate
big-picture question: "Why am I doing this deal?" Once
you really nail down the things you want, better ways to get them
will often jump out at you. Brainstorm with these two magic words:
"How else?"
For example, an unsophisticated inventor assumes that his only
option is to sell a brilliant new idea outright to some
megacorporation for a pittance of a royalty. By reconsidering how
else he could make a profit, he suddenly realizes he could
also:
- approach competitors of that company;
- find a smaller partner who'll offer better terms;
- wait until he has an irresistible working prototype so he can
cut a better deal;
- license just part of the idea;
- take on a second job and finance his own manufacturing and
distribution;
- and/or call an expert such as a patent lawyer for help.
Once you really nail
down the things you want, better ways to get them will often jump
out at you.
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Just as you can be more general, you can also be more specific.
To examine a deal in more detail, try this little ditty from
Rudyard Kipling: "I keep six honest serving men, / (They
taught me all I knew); / Their names are What and Where and When, /
and How and Why and Who." Let's say you're a business
owner with a space problem who thinks the only solution is to make
a deal to lease or buy a larger facility. Instead, you may ask
yourself: What is taking up so much space? Where else can I put
everything? When can I do this? How can I make more room? Why
should I keep everything? Who can help me?
Considering those questions can generate options: Throw out
whatever is not needed, have a garage sale, give stuff to charity
and take a tax deduction, add another story or room to the existing
space, rent off-site storage, or hire a professional organizer. Any
one of these is probably a lot easier (and cheaper) than
moving.
Later, when you're seated at the bargaining table,
creativity plays a different role-as the catalyst for win-win
solutions and the antidote to impasse. For example, you may
deadlock on price, but once you get creative with payment terms and
financing, everything may fall into place. Again, it's all
about alternatives, and the techniques above will serve you just as
well before your negotiation as during. Just remember to stay
practical. Don't let your brainchildren get so complicated that
they're difficult to explain, document or administer.
A speaker and attorney in Los Angeles, Marc Diener is the author of Deal Power.