| When negotiating a business deal with a smaller up | | | | costs you nothing at all and gives them an influx of |
| and coming company the larger company may wish | | | | cash and this is a feather in your cap and can allow |
| to consider their position in the game and what the | | | | you to negotiate a lower price or better terms or |
| end goal for the smaller company is. That is to say | | | | additional services. |
| what is the little company trying to achieve. For | | | | It pays to know who you are negotiating with and |
| instance the little company wants PR value from | | | | their motivation and especially those motivations |
| being able to say they have the larger company as | | | | which you can provide without costing you anything |
| an account or is partnering with them. | | | | on your bottom line. Now that is truly a Western |
| Why? Well perhaps they wish to leverage this with a | | | | World win/win scenario and it makes sense to |
| second round of venture capital funding or use it to | | | | proceed this way. Just make sure you are certain of |
| sell more large accounts and often there are reasons | | | | the little company's ability to perform and do what |
| of ego also involved. Being the larger company you | | | | they say they are going to do. Be weary of over |
| can often all them to use public relations and tell | | | | promising from cash poor start-ups with high burn |
| others that they are doing business with you as that | | | | rates. Consider all of this in your negotiations in 2006. |