5 Tips on How to Negotiate a Salary

To negotiate a salary can be both the most profitable and the most humiliating thing an employee or job seeker can do. If correct knowledge about how negotiations work, an employee can achieve marvelous results. If taken lightly, the negotiation will often end up in frustration and humiliation. Thus, the route of knowledge should definitely be chosen by anyone seriously wanting to negotiate for a high salary. Here are five important tips for the salary negotiator:  

Tips # 1 – always aim for a win-win scenario The basic principle of all negotiations – not only salary negotiations – is that the negotiations will end up in a co-operation between the parties only if the benefits for both of entering into an agreement exceed the costs for doing so. Thus, the salary negotiator must always aim for a win-win scenario when negotiating the salary.  

Tips # 2 – focus on the interests of the employer In order to achieve the sought for win-win situation, the employee or job seeker must focus hard on the employer’s interests and really understand them. The job which salary is negotiated fits in somewhere in the employer’s plans. The employee or job seeker must understand those plans in order to be able to present himself/herself as the solution to them or an important contribution to their achievement.  

Tips # 3 – prepare carefully before negotiating the salary Research shows that the key factor explaining the difference between successful and less successful negotiators is the extent to which preparations are made. There are several important steps to take, among them to find the range within which the salary can be negotiated and to brain storm for arguments that the employee/job seeker should have a salary in the higher end of this range.  

Tips # 4 – adopt a winning attitude To succeed with anything, a winning attitude is of great importance. This applies to athletes and salary negotiators equally. One way to adopt a winning attitude is to write down an ambitious target for the salary negotiation, the reaching of which is thereafter visualized by the employee or job seeker days before the negotiation.  

Tips # 5 – make sure the timing is right The employee or job seeker must wait and try to avoid discussing actual salary figures until the right moment. The employer must “be on the hook” first, being really interested in the employee/job seeker and his/her job there. Only then shall s/he name his price.

Should Presentation Training Be a Part of Soft Skills Training Programs?

The presentation skills training program is a key component of Soft Skills Training and Development for any working professional. It is designed to help professionals achieve significant career growth by leaving a memorable impression with their audiences consistently. The focus of this program is on two aspects – how to create an impressive presentation and how to present this information powerfully.

Why Presentation Training?

There are numerous reasons, but the following two reasons are the most critical:

  • Flawless presentation skills are the key to a career graph poised for constant upward growth, and
  • As a presenter, you don’t just need to present facts and figures, you also need to be engaging, vibrant and capture your audience’s attention.

Clarity of diction and non-verbal skills are just as important as the grades you graduate with. While you might not like the idea of standing up in front of a crowd, as a professional, you’ll need to, sooner or later.

The idea is to project a confident and effervescent personality with the ability to connect with people at large. But it’s not a skill always inherent in people. It requires a blend of leadership skills and a conscious focus on progressing beyond limiting mindsets. This is the precise reason why most B-schools hire services of soft skill training companies to train their graduates.

The Need for Soft Skills Development

Very often, we see that unhealthy mindsets with a penchant for negative thinking have a direct bearing on a slew of life conditions, including job performance. However, what also gets in the way of success is a lack of awareness of our own reactions and learned behavior.

Let’s look at a simple question to which many don’t know the answer. The question is, “How is pop corn made?” The answer – in every kernel of corn there is a drop of water. When heat is applied to the corn, the water inside the corn starts to increase in temperature and vaporizes and expands in space. This causes the corn to burst open, thus forming popcorn. When we apply the same concept with regards to our mindsets when under pressure, what emerges is indicative of the mindsets that we nurse on the inside of us. The ability to handle challenges calmly and constructively cannot be developed if we harbor negative and limiting mindsets. The behaviors, which are a result of our mindsets, are what we call as soft skills. Hence working on specific types of soft skills has a direct impact on our mindset. For example, when you are conducting a presentation, the manifesting behavior of confidence or nervousness is what is referred to as ‘soft skills’ and our existing mindsets cause this behavior.

Most Soft Skills Training Programs focus on techniques that enable the participants to create empowering mindsets that help them to present with confidence and charisma as the Indian education system does not provide too many opportunities for public speaking in the curriculum.

Funding Source’s, What to Look For When On the Hunt, and How To Present

Now that you have written your business plan, have your preliminary financial data in place, you need money to make it happen.

How do you find that money? If you have saved up some, you can use that, or you can go to friends and family and get some money from them, if they support your concept and think you can do it. (F/F/P phase)

There are two other sources to go to as well, Angels or Venture Capitalist.

An Angel is a person or group that typically gives a startup up idea from $25K to as much as $1M (that much is typically an Angel Group) to begin developing the Proof of Concept or the product itself. You should go to an Angel Funding Source if you need less than $1M, and typically less than $500K, to get your product built, or if your plan requires a Proof of Concept, the Proof of Concept built.

If you go to an Angel or Angel Group you need to look at some factors before starting to talk to them. Do some research and find out:

1. What the person/group you are interested in asking money from typically invests their money in.

2. If they accept Venture Capital as a future source of funding.

3. If they are willing to add more cash down the line to help reach that “next” milestone.

4. If they have contacts with people that may be interested in providing more money should the need arise.

5. If they have contacts that may want to use your product/services.

6. How much control/hands on activity they want to have with your company. (Do they want to sit on your Board of Directors or Board of Advisors, do they have any say on how the money is spent within the company?)

7. And if you are going for a lot more money in the near future, if they work with or know any Venture Capitalist that like your industry/product type.

It is the recommendation of TDBell Enterprises, Inc., that you work with your Angel Investors as an Equity Play, meaning they get a small portion of your company for the money they invest. We do not recommend that you use the money as a loan.

A Venture Capitalist is typically a person or company that has gone to from one to many people, companies, retirement funds or other large pools of money and created a Venture Fund that is geared to one or more industries/products/services. These funds typically finance a company from $500K to over $200M, taking stock in the company as “collateral”.

Like going to the Angel Investors, you need to look at a few things when you go to a Venture Capitalist:

1. Has the person/group invested in companies in your industry?

2. At what stage of the company (Proof of Concept, Development, Revenue in place (and if so, at level of revenue is required), etc.)

3. Are they going to be Sole Investors at this stage, or are they going to have other groups joining in this round with them.

4. How involved are they going to get with your company? (Do they want to manage the company, etc?)

5. Do their portfolio companies need your product and will they introduce you to them if they do?

6. How much of the company stock do they want?

7. Will they add more funds to the company should it be needed? (And if so, at what cost to you?)

8. How much reporting do you have to do to them?

After you have looked at the available Angels that you can find, the available Venture Capitalist you can find, you need to decide which path is the best way to go for your company and your “style”.

If you are confident that you will need Venture Capital level funding, after you narrow your search down to the Venture Capitalist you are going to target, and have answered the above 8 (and a few more I’m sure) questions, you need to decide if you need to go to an Angel first.

At this point you start fine tuning your financial section to meet the needs of the Investor you are going to approach. The over all business plan stays the same through this process (unless you are fine tuning it to meet development/production needs due to feedback, etc.). The only part of the business plan that changes is the Financial Section(s) and that changes based on the target Investors. You already have in your plan the steps to go live and to go to revenue. You have your milestones written down, etc, in the plan, and you have “line items” in the financial section that correspond.

Example:

You are going to create a software/hardware intensive service product that requires FCC approval of the Concept. To create the Proof of Concept to meet the FCC needs, you need $750,000, but to go to revenue you will need roughly $35M (which includes the $750K). You are able to get a Friends/Family/Personal Pockets (F/F/P) round up of $150K.

Your research shows that the available list of Venture Capitalist out there that would fund this project require you to have your FCC permits in place, a working model of your service product in place, and 1 solid customer ready to pay for your services once you are able to build out.

In this example you would need to go to one or more Angel Investors to help you reach the remaining $600K to get your prototype up and running to do the testing that will satisfy the FCC. You would want to find an Angel or Angel Group that allows for future rounds of Venture Capitalist backed funding. This group would hopefully be willing to add a bit more in if needed to go past any “gotcha’s” that may crop up as you answer the FCC requirements.

Now that you know you are going to an Angel or Angels you rewrite your financial section to show an investment of $150K (F/F/P), the need and the use of the $600K from the Angels, and when the remain investment of $34,250,000 will be requested and how it will be used.

When you write up your presentation to the Angel(s) you show the Living business plan, current Financials, and talk to your needs.

When you get to the Venture Capitalist later you write up your presentation, you show the current business plan, which no longer has the Proof of Concept stage in it (it’s completed successfully, and not part of your plans now, living business plan remember?) but shows next stages over the next three to five years as perceived today, with the financials now showing how you spent the last $750K, and what you will be doing with the next $34,250,000 that you are asking from the Venture Capitalist.