About to negotiate my first business contract. Help me get it right.
October 30, 2014 9:25 PM Subscribe
I have been offered a possible role to manage a section of a start up company. I have expertise in the area I would be managing, but I have never negotiated a contract or anything like it in business and I have no idea how it goes. I don't want to work for free, but I don't want to be inappropriately stingy with my contribution, prior to having a formal contract.
The startup up is in an area of healthcare that has to do with corporations. I have never worked with corporations or in big business, only direct with patients and in the context of a small business.
I want to be more settled about everyone's expectations, but I don't know the questions to ask, and I don't know what to say to get my concerns addressed. I know that I don't want to work for free and I don't want to give up my best ideas for free.
I came into this situation having a vision of what could be, a vision that included helping out my fellow humans as a whole, and a vision of taking a transformative approach, rather than making small changes to models that are not working. Both of these components are a priority for me.
At this point, the person I am in negotiations with sounds a little more wealth focused and a little less "good for people" than I tend to feel. She seems also to want to tweak what exists rather than create something quite new. I also sense that things are a little up in the air for her and that I have the possibility of helping shape her approach. I know more than her in this area, both in knowledge and in experience. She has superior knowledge than me in dealing with funding issues and corporate people.
She seems to me be a fairly strong-willed person, and she has the funding and I don't. Because of these two things I tend to feel disempowered when I talk to her about my vision. When she says that the way I see things won't work, I don't feel heard. Apparently, it's important to me to feel heard. I watched myself sort of checking out in our last conversation, just sort of nodding, losing my enthusiasm and waiting for the conversation to be over, so I could re-group. She was dismissing my ideas, but I know I responded internally by dismissing some of her ideas by not considering them closely.
Of course, I didn't communicate any of my responses or concerns out loud, all the drama and worry is in my head. Cause I don't know what to say exactly. I am not sure how to voice my concerns and beliefs while avoiding conflict. I feel disempowered when I'm not saying what is on my mind and I just get stopped in the situation as a whole. A bit discouraged.
I've resolved to do some research about her ideas and mine in the context of a bottom line, and offer that up when I email her next. Cause maybe we are both right, or both wrong with our beliefs.
I need help determining what to ask to be payed for and when. I feel shaky about my place in this newborn company and I'm not sure how to get unshaky.
She wants me to outline in more detail what I envision for her company. How much detail is fair for me to give for free? When and how do I begin to negotiate payment?
She seems to really want me in the company and says she will introduce me to everyone involved in the next couple of weeks.
Thanks.
The startup up is in an area of healthcare that has to do with corporations. I have never worked with corporations or in big business, only direct with patients and in the context of a small business.
I want to be more settled about everyone's expectations, but I don't know the questions to ask, and I don't know what to say to get my concerns addressed. I know that I don't want to work for free and I don't want to give up my best ideas for free.
I came into this situation having a vision of what could be, a vision that included helping out my fellow humans as a whole, and a vision of taking a transformative approach, rather than making small changes to models that are not working. Both of these components are a priority for me.
At this point, the person I am in negotiations with sounds a little more wealth focused and a little less "good for people" than I tend to feel. She seems also to want to tweak what exists rather than create something quite new. I also sense that things are a little up in the air for her and that I have the possibility of helping shape her approach. I know more than her in this area, both in knowledge and in experience. She has superior knowledge than me in dealing with funding issues and corporate people.
She seems to me be a fairly strong-willed person, and she has the funding and I don't. Because of these two things I tend to feel disempowered when I talk to her about my vision. When she says that the way I see things won't work, I don't feel heard. Apparently, it's important to me to feel heard. I watched myself sort of checking out in our last conversation, just sort of nodding, losing my enthusiasm and waiting for the conversation to be over, so I could re-group. She was dismissing my ideas, but I know I responded internally by dismissing some of her ideas by not considering them closely.
Of course, I didn't communicate any of my responses or concerns out loud, all the drama and worry is in my head. Cause I don't know what to say exactly. I am not sure how to voice my concerns and beliefs while avoiding conflict. I feel disempowered when I'm not saying what is on my mind and I just get stopped in the situation as a whole. A bit discouraged.
I've resolved to do some research about her ideas and mine in the context of a bottom line, and offer that up when I email her next. Cause maybe we are both right, or both wrong with our beliefs.
I need help determining what to ask to be payed for and when. I feel shaky about my place in this newborn company and I'm not sure how to get unshaky.
She wants me to outline in more detail what I envision for her company. How much detail is fair for me to give for free? When and how do I begin to negotiate payment?
She seems to really want me in the company and says she will introduce me to everyone involved in the next couple of weeks.
Thanks.
Now you see, this doesn't sound like a good fit to me. At all. You may have some small component that she needs, but you are not on the same page. Do you think you would enjoy working for her? As it exists today, are you comfortable with the company and its goals and vision?
If you are brought in to be Devil's Advocate, and you don't have the stomach or the voice for it...that's no good for anyone.
What about this job is good for you? In what way would this enviroment be good for you?
Right now, I'd continue to look.
If you do want to move forward, then pay a lawyer to draw up a good contract that YOU'RE comfortable with.
posted by Ruthless Bunny at 7:51 AM on October 31, 2014
If you are brought in to be Devil's Advocate, and you don't have the stomach or the voice for it...that's no good for anyone.
What about this job is good for you? In what way would this enviroment be good for you?
Right now, I'd continue to look.
If you do want to move forward, then pay a lawyer to draw up a good contract that YOU'RE comfortable with.
posted by Ruthless Bunny at 7:51 AM on October 31, 2014
It isn't clear from your question what stage of development this company is in.
Does she already have funding? Did she have to present a business plan or pro forma or something in order to secure this funding? If you two are just talking about your ideas, and there are no concrete plans and funding is not secured, AND you want to be in business with the person, then approach it as building a partnership to start up the company. She may be better able to secure funding, but you'll be bringing valuable IP to the organization. Work with an attorney to draw up appropriate partnership or shared ownership papers.
If there are plans and funding in place, and you're being approached to just manage a section of the company, your vision of what the company could be doesn't really matter. If funding was secured for a more conservative, less transformative approach, the funders may not be willing to also fund something more transformative (and risky). In this case, it would be better to evaluate how you can contribute to executing the existing vision and plan, whether you would gain valuable experience and contacts by working with this org, and if those things make it worth working there even if they aren't taking the approach you prefer. If you decide you want to move forward, work with a lawyer to make sure your interests are protected in any agreement as an employee.
In terms of how much to do without getting paid - don't do any actual work without getting paid or having some sort of agreement in place. In my book, discussions aren't "work," sending an email with bullet points about your vision and why you think it is best isn't really "work." Writing a business plan, developing a pro forma, creating an implementation plan, etc. are work.
posted by jeoc at 2:09 PM on November 1, 2014
Does she already have funding? Did she have to present a business plan or pro forma or something in order to secure this funding? If you two are just talking about your ideas, and there are no concrete plans and funding is not secured, AND you want to be in business with the person, then approach it as building a partnership to start up the company. She may be better able to secure funding, but you'll be bringing valuable IP to the organization. Work with an attorney to draw up appropriate partnership or shared ownership papers.
If there are plans and funding in place, and you're being approached to just manage a section of the company, your vision of what the company could be doesn't really matter. If funding was secured for a more conservative, less transformative approach, the funders may not be willing to also fund something more transformative (and risky). In this case, it would be better to evaluate how you can contribute to executing the existing vision and plan, whether you would gain valuable experience and contacts by working with this org, and if those things make it worth working there even if they aren't taking the approach you prefer. If you decide you want to move forward, work with a lawyer to make sure your interests are protected in any agreement as an employee.
In terms of how much to do without getting paid - don't do any actual work without getting paid or having some sort of agreement in place. In my book, discussions aren't "work," sending an email with bullet points about your vision and why you think it is best isn't really "work." Writing a business plan, developing a pro forma, creating an implementation plan, etc. are work.
posted by jeoc at 2:09 PM on November 1, 2014
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I was asked to spell out for my contract what my role was, and I did not put in enough effort there or get a contract/employment lawyer to help me do it right. All of my intellectual property/contributions were stolen, and she effed it up anyway, so all of the positive momentum we had that would have made us both $$$ faded when she stole my shit and pushed me out. I would have been FINE if she could have made it a success and I would have retained an interest.... But damn did her business model suck for a such a successful and almost fool-proof product. And there you have it.
Get a lawyer to guide this negotiation and whisper magic in your ear. Full stop.
posted by jbenben at 11:48 PM on October 30, 2014 [1 favorite]