BUSINESS SENSE
“Negotiating Your Deal” – Week 16
Nancy Larsen, Enterprise Facilitator of SEFP

Successful businesses are well planned and well capitalized and one goes with the other. Most entrepreneurs approach the issue of negotiating with great stress and anxiety. This leads directly to weak negotiations or becoming defensive about being asked too many questions. Either way, you lose! In order to avoid this happening to you, make sure you have:

• Establish ceilings and caps. You do not want to be stuck paying huge payments if rates go up.
• Plan for the downside. Attempt to have an “interest only” clause or “skip payment” provision in the event of slow downs.
• Look for no pre-payment penalty.
• Pay attention to covenants, conditions, ratios, restrictions or other clauses, which can have serious long-term effects.
• Try to minimize pledging collateral.
• Seek professional counsel before you sign anything. Lawyers and accountants may not help you fund your deal, but they can help you spot the small details that may burden you down the road.

Everything you do from here on out reflects on your business for success or failure. Once the business plan is written and the financials are in place focus your attention to selling yourself and the company. Dress for success and the image you have built in the company. Call ahead, make an appointment and put your best foot forward.

The Business Sense series is brought to you by Nancy Larsen, the Southeast Enterprise Facilitator (SEFP) that offers FREE and confidential business assistance to the entrepreneurs living in a 6-community area of Turner/Hutchinson Counties to start-up and/or expand businesses.

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