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Because I'm an occasional rock 'n' roll lawyer,aspiring pop idols sometimes seek me out. Usually the dealsthey're offered are awful. Yet one desperate singer showed me acontract that promised to put him not in the "surf music"but the "serf music" genre--the terms would havemade a feudal overlord blush. I was frank with my prospectiveclient: "It is mathematically impossible for you to make onenickel on this deal. Why bother?"
"But you don't understand," he pleaded. "Ijust gotta get a record deal!"
A speaker and attorney in Los Angeles, Marc Diener is theauthor of Deal Power: 6 Foolproof Steps to Making Deals of AnySize(Owl Books/henry Holt). you can reach him at MarcDiener@aol.com
Know Thyself
Superior dealmakers know exactly what they want and why. Startevery deal with a little soul-searching. Ask yourself: "Why amI doing this?" And don't assume you know the answer. Ifyou're honest, you may be surprised. Psychologist AbrahamMaslow theorized a hierarchy of human needs starting with thebasics like air, water and food; through sex, safety, love andbelonging; to the higher ones like truth, justice, beauty andself-sufficiency. Let's adapt this idea to dealmaking.
Money is a universal need. Deal terms such as time, service orany kind of tangible or intangible property usually convert toplain dollars and cents. That much is obvious. But not all businessneeds are based on money. For example, a successful venturecapitalist may harvest his company because he wants to spend moretime with his family. An executive may quit the company thatslighted her to launch a competing one. A retiring owner may nottolerate being put out to pasture and prefer to stay on as apart-time consultant.
Satisfying your emotional and psychological needs can be evenmore important than satisfying your financial ones. By being candidwith yourself, you may uncover your real motives, crystalize yourgoals and push forward vigorously. Or you may reject a deal andfind simpler ways to satisfy your true needs. After all,there's no point wasting time and energy on a deal that cannever give you what you really want.
Your Wish List
Great dealmakers are also great list-makers. Putting your listin writing is the second step to effective goal-setting. Start byidentifying all the things you want and all the things youdon't. Go into detail. Then group and prioritize these goalsinto what you must have, what you'd really like to have andwhat you can take or leave. Make this exercise even more effectiveby getting someone to act as a sounding board and listen to yourideas. Or consult a professional, such as an attorney, or otherresources (books, magazines or the Internet, for example) to findout what each side typically gets in a deal like yours.
I know this may seem like undistinguished advice, and theexercise so simple-minded you'll want to skip it. Don't. Itis remarkably powerful. At its most basic, your checklist will keepyou from missing something, from forgetting to insist on animportant deal term or concession. It also articulates your bottomline--the minimum you'll accept before walking away. But evenmore important, having clear, specific goals gives you the focus,energy and self-confidence to negotiate on your terms. Inbusiness, attitude can be everything. And the strength that comesfrom knowing exactly what you want translates to true power at thebargaining table.
A speaker and attorney in Los Angeles, Marc Diener is theauthor of Deal Power: 6 Foolproof Steps to Making Deals of AnySize (Owl Books/Henry Holt). You can reach him at MarcDiener@aol.com
Web Site
Business ethics
By Robert McGarvey
Business ethics and dealmaking don't have to be like oil andwater. If being an ethical member of the community is one of yourpriorities, feast on some substantial food for thought in thebusiness ethics section (http://www.us.kpmg.com/ethics)of KPMG LLP's Web site, where the goodies include a white paperon avoiding the myths about business ethics and another on thehow-tos of measuring business ethics. None of this is lightreading, but it's indispensable for any entrepreneur who'sbent not on making the quick deal but on building a company oflasting import.
