Negotiation is a crucial skill for entrepreneurs and startups who want to secure good deals with investors, partners and customers. In this year's ESSE growth program, we are placing a special focus on how participants can strengthen their negotiation skills and achieve win-win situations. Bjarne Tvete, CEO of Aggrator , has extensive experience with negotiations and recently shared his best advice in Salvador Baille's podcast, SOS Innovation .
Bjarne previously worked as Business Development Manager at Inven2 (Oslo Tech Transfer), where he started 15 companies and negotiated over 100 licensing agreements. His experience provides valuable insight into how entrepreneurs can succeed in demanding negotiation situations. In this article, we share Bjarne Tvete's 3 best tips for strategic negotiations.
1. Going in to “win” a negotiation is fundamentally wrong
A successful negotiation is not about “winning” at the expense of the other party, but about creating a situation where both parties gain value. “There are techniques that focus on pressuring the other party, but it is rarely a strategy that works in the long term,” explains Bjarne. He emphasizes that good cooperation requires both parties to feel that the agreement is fair.
“If a license partner later realizes that the agreement is more demanding than expected, and that the financial gain is not proportional to the investment, they may feel cheated. This can lead to the product not being prioritized or reaching the market, thus losing its value to both parties.”
2. The real power in a negotiation lies in strong alternatives
Many people believe that the largest player in a negotiation has the most power, but Bjarne believes that the strength lies in the alternatives you have to enter into the agreement. “The person who has the best alternative to not entering into the agreement has the most power in a negotiation. That is why it is important to know in advance how far you are willing to go, and when it is better to consider andre opportunities,” he says.
3. Sign the term sheet directly in the meeting
International negotiations can present unexpected challenges, especially when cultural differences come into play. Salvador Baille says in the podcast, “I have experienced thinking that a deal was done, only to receive an email a few days later where the other party wants a rematch on key points.” Bjarne Tvete's advice for avoiding such situations and ensuring effective negotiation processes is to always get clear written confirmation of the main points of an agreement before ending a meeting. “A 'term sheet' that anchors the most important points for both parties can save you a lot of frustration later,” he says.
Masterclass in negotiation techniques 25.09
In this year's ESSE growth program, we have dedicated a separate masterclass on negotiations, where Bjarne Tvete together with Anders Rygh, partner at Beyond Startegy consulting. “Negotiations are not just theory, it is primarily preparation, strategy and communication. Our goal is to equip entrepreneurs to get the best deals, while building good and lasting partnerships,” concludes Bjarne.
See full program before ESSE and sign up for the masterclass on negotiation techniques here .