Lesson 59: Negotiation
“I’m not negotiating with myself” - Kobe
Kobe became great because he decided to never negotiate with himself about his goals. He developed a level of discipline that helped him climb mountains of adversity to reach the apex of his potential. There was no turning back once he began to ascend the mountain. As I ascend my own mountain, I refuse to negotiate with myself as I climb.
Although I refuse to negotiate on my goals, I realize entrepreneurs negotiate every day - especially when they are selling their business. This week, I had breakfast with an entrepreneur about to sell his business and retire. I could relate when he said, “I got into business for myself because I did not want to work for anyone else.” He explained that some buyers want him to stay in the business for a few years but that conflicts with his desire to spend more time with his other interests. As I meet with entrepreneurs selling their business, I need to find multiple points of interests on which they are willing to negotiate.
Negotiation is a skill. Like financial modeling or public speaking, it comes from practice and instruction. That is why I enrolled in the Negotiations class at Booth with Prof. Shereen Chaudhry. Each week, we negotiate in a new scenario: buying a piece of art, compensation package, etc. The first step is identifying and placing value on the different points of interest. For example, when buying a business the seller might want to take all of her office furniture when she leaves so I can negotiate a lower price in exchange for her interest in the furniture. Oftentimes there are common interests, or at least complimentary interests, to uncover the best outcome for everyone. This is a necessary shift in mindset for an entrepreneur.
We each have a mountain to summit. The goal is clear. The path is rocky, cold, and worn. We have two choices each morning: Turn back or Keep going. If I decided negotiating was too difficult, I would have turned back. However, I practice and seek instruction so I could keep going. As more challenges arise on the climb, I am not negotiating with myself. I need to figure out a way to take the next step.
My mission is to increase representation for Black leaders at the executive, investor, and board level. Negotiation is a necessary tool for this mission because, as I learned in class, it requires uncovering how this could benefit all of society. My long-term goal is to lead a private equity firm that invests in businesses to create jobs people love. However, PE firms in 2021 owned by ethnic and racial minorities and women manage 6% of total private equity capital. As I move from business school to acquisition entrepreneurship to leading a private equity firm, my ability to move this statistic improves and so does my ability to create jobs people love. That is why I am not negotiating with my goals.
This is Lesson 59: Negotiation. Next week is Lesson 60: Perspective.
