Negotiation is a crucial skill for entrepreneurs and startups who want to secure good deals with investors, partners, and customers. Bjarne Tvete, currently CEO of Aggrator, has extensive experience in negotiations. He has previously worked as a Business Development Manager at Inven2 (Oslo Tech Transfer), where he started 15 companies and negotiated over 100 licensing agreements. In this article, we share Bjarne Tvete’s 3 best tips for strategic negotiations.
1. The fundamental mistake is to go into a negotiation with the intention of «winning»
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 run,» explains Bjarne. He emphasizes that good cooperation requires that both parties 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 does not justify the investment, they may feel cheated. This can lead to the product not being prioritized or reaching the market, and thus the license agreement loses its value for both parties.»
2. The real power in a negotiation lies in strong alternatives
Many believe that the biggest player in a negotiation has the most power, but Bjarne believes that the strength lies in the options one has to enter into the agreement. «The one who has the best option of not entering into the agreement has the greatest power in a negotiation. Therefore, it is important to know beforehand how far one is willing to go, and when it is better to consider other options,» he says.
3. Get the main points in writing before the meeting ends
Negotiations can present unexpected challenges, especially internationally, where cultural differences can influence how a deal is perceived. Bjarne Tveten’s advice is therefore to always obtain a clear written confirmation of the key points before the meeting ends. A simple term sheet can help anchor what you actually agree on and reduce the risk of misunderstandings or disputes later on.
Do you want to become a skilled dealer?
In this year's ESSE growth program We are launching a new masterclass in negotiation techniques, focusing on how to become a better negotiator and create win-win situations. Bjarne Tvete will lead the day together with Anders Rygh, partner at Beyond Startegy Consulting. «Negotiations are primarily about preparation, strategy, and communication. Our goal is to equip entrepreneurs to secure the best deals while building strong and lasting partnerships,» Bjarne says about the masterclass.
Source: Salvador Baile's podcast, S.O.S. Innovation, where Bjarne Tvete shared his best negotiation tips.