Streamlining Sales Negotiations for Start-ups Simon Hodgett Salim - - PowerPoint PPT Presentation

Osler, Hoskin & Harcourt LLP

Simon Hodgett Salim Dharssi

Streamlining Sales Negotiations for Start-ups

October 2019

2

STREAMLINING SALES NEGOTIATIONS FOR START-UPS

The innovator’s journey

Foundations Revenue Initiation Standardization

Scaling

Preparing to sell

4

STREAMLINING SALES NEGOTIATIONS FOR START-UPS - PREPARATION

Know your customer

Enterprise

• r small to

medium-sized business (SMB)? The industry sector will impact contracting Avoid a battle

• f the forms

Manage timing expectations

5

STREAMLINING SALES NEGOTIATIONS FOR START-UPS - PREPARATION

Customer agreements can be selling tools

Quality Standardize the agreement used to sell your products and services Choose an approach: Balance vs. company friendly

6

STREAMLINING SALES NEGOTIATIONS FOR START-UPS - PREPARATION

Developing your standard form agreement

Decide on structure suitable for customer and industry Tailor to the product and service Involve all stakeholders Give some thought to whether you will be selling across borders

The sales process

Document your contract negotiation process

8

STREAMLINING SALES NEGOTIATIONS FOR START-UPS – THE SALES PROCESS

A documented process will streamline negotiations

1

Identify and empower a “quarterback"

2

Identify all stakeholders and give them responsibility

3

Train all stakeholders

• n the

process and give written instructions

4

9

STREAMLINING SALES NEGOTIATIONS FOR START-UPS – THE SALES PROCESS

10

STREAMLINING SALES NEGOTIATIONS FOR START-UPS – THE SALES PROCESS

THE SELLING MINDSET

Evaluate and balance risk

Not reaching an agreement in a reasonable time is also a risk

There are critical issues you shouldn’t give on

11

STREAMLINING SALES NEGOTIATIONS FOR START-UPS – THE SALES PROCESS

Doing the homework (above) is important Provide lead time Should set reasonably high expectation that the legal team will be responsive to sales support requests Identify and discuss turnaround time expectations Working with your legal team

12

STREAMLINING SALES NEGOTIATIONS FOR START-UPS – THE SALES PROCESS

Playbooks and acceptable variations

Create and maintain standard responses and acceptable variations to contractual provisions Allows companies to scale quickly and expedite the conclusion of agreements Approval grids At a minimum, have a feedback mechanism

NDAs

Non-disclosure agreements and confidential information

14

STREAMLINING SALES NEGOTIATIONS FOR START-UPS

Should not necessarily be used in all situations – avoid getting tainted Very difficult to enforce Adopt and use a standard form

• f NDA

Read other parties’ NDAs and be sensitive to non-standard terms

Thank you! Questions?