SULLY-ISMS

Probably the biggest skill any company [especially start-ups] can have is not spending money. The basic equation goes that each $1 going into a startup is worth ~$10 in two years’ time, so spend dough as if it is printed on gold leaf.

You’ve heard the adage, “A rising tide lifts all boats,”well this is exactly the opposite – when the world around you is sinking, sucking, contracting, et. Al – you need to sink less, suck less, contract less, et. Al.

It is an uncomfortable truth, but people who have signed the front of a check – specifically the business OWNER, or anyone whose job it is to operate a given business and whose very job is on the line when things go south - have a much more practical, less idealistic view of things. That experience is hard won, and much of it comes from having made mistakes.

 Everything in business and our lives has an element of two emotions: Fear and Greed.  Moreover, all of us have an Achilles heel, a fatal flaw that hinders our ability to maximize our potential in conducting and operating business and in our relationships. To be sure, it is emotion and it is difficult to remain devoid of emotion when your hard-earned money is on the line, but mastering the art of apathy is the key to investing success.

It is better to not lose $5 than to find $5. The principle is very prominent in the domain of business and interpersonal relationships. In cognitive psychology and decision theory, loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains. Psychological studies have suggested that losses are three times as powerful, psychologically, as gains.

A person who loses $100 will lose more satisfaction than another person will gain satisfaction from a $100 windfall. In marketing, the use of trial periods and rebates tries to take advantage of the buyer's tendency to value the good more after the buyer incorporates it in the status quo. 

A reaction is instant. It’s driven by the beliefs, biases, and prejudices of the unconscious mind – BAD. A response will be more “ecological,” meaning that it takes into consideration the well-being of not only you but those around you. It weighs the long term effects and stays in line with your core values – BETTER. The best of all worlds when bullets are whizzing overhead is to RE-CYCLE and then course-correct.

You might be uncomfortable in the silence, but when your negotiations are coming to a close, remain quiet in order to get the other party to talk more. The Golden Rule when using silence as a tactic is, “He who speaks first loses.”

No talking, silence, bite a hole through your lip if you have to, but calmly wait for the seller’s response. THEN…

 Pretty simple – don’t sell past the close.

Again, very simple – as much as it may hurt for the other side to hear [or for you to say it,] just be honest. It will pay off in your favor over and over.

I cannot tell you how many times, a good negotiation has resulted in an upsell, a new opportunity or even a job offer. How we handle ourselves in the trenches of negotiation often belies our moral character to the other side. You never know who is watching and paying attention to the “small stuff” you are doing in a negotiation.

When more money and larger opportunity is at stake, negotiations will get heated. This, by the way, is not the exception, but rather the norm. Do not get caught up in the polite niceties and are too concerned with societal offenses which will derail your process and simplicity of your desired outcome.

The first mover advantage [first to market] lets us establish a strong position, strong brand recognition, strong customer base and ultimately, product/service loyalty before all other comers.

This simple sentence is a great way to identify your “Unique Negotiating Leverage.” If you know that you are “the only” company “that can” perform X or “the only” technology “that can” improve Y, then you know what kind of leverage you have in and around negotiations and more importantly can improve on that position. Be the only…