Why every startup needs a negotiation mindset

In the world of startups, resilience is often considered to be a key indicator of success, and typically approached as an individualistic trait. Who has grit, stamina, or can persevere?

There is something to be said, however, for resilience and adaptability at the organisational level. Most resilient startups are built around teams that know how to navigate tension together, embrace differences of opinion, and dive into difficult conversations with openness.

At the heart of this collective resilience is a competency too often overlooked: negotiation.

Consider the very public clash earlier this year between a rocket-launching tech billionaire and a tweet-ready commander-in-chief. A dramatic reminder that even the most strategic relationships can unravel quickly when communication breaks down and expectations go awry. Most startup teams won’t face that scale of drama, but the core principle still applies: when (fair and forthright) negotiation isn’t woven into a company’s culture, fractures remain hidden until they’re too deep to repair.

Whether it’s a disagreement over priorities, responsibilities, or resources, a culture where people are encouraged to negotiate openly and constructively leads to stronger outcomes, relationships, and ultimately stronger startups.

And, guess what, people love learning how to negotiate. It’s a skill that benefits them in every aspect of their lives. At Newton Venture Program, our Negotiation sessions are some of the most loved because people get to practice negotiating in a safe space – without judgment, pressure, or fear of getting it wrong.

It’s why I believe more founders ought to encourage a negotiation mindset – where colleagues are encouraged to learn and practice this vital skill.

Principle 1: don’t just hope for harmony, build it

In startups, especially early on, it’s tempting to assume everyone’s on the same page. You’re lean, mission-driven, moving fast, and harmony feels like a given. But even in teams with the most worthy objectives, human nature still persists. People clash. Expectations drift. Tensions build. Purpose alone doesn’t prevent miscommunication. And as the team grows, so do the chances of misunderstanding one another and developing unspoken frustrations.

There are simple ways to build a negotiation mindset day-to-day. You could leave the last 10 minutes of every 1:1 for upward feedback: an explicit invitation for team members to flag concerns or question top-down direction. Or you could consider “role reversal” sessions, where product and sales teams, for example, switch roles to explore how decisions look from the other side of the table. Neither are about being confrontational. They’re about creating a space to speak up and realign efforts.

Startups that rely on shared values alone are banking on harmony. Startups that invest in their team’s negotiation skills are actively building it.

Principle 2: negotiation isn’t just for the boardroom

When we hear the word ‘negotiation,’ many of us picture a funding round or a sales pitch. But in a healthy startup, negotiation should be everywhere. It’s a product manager challenging a timeline. A junior team member asking for more clarity. Two co-founders talking through strategy.

These conversations may not look like formal discussions, but the same dynamics are at play: two sides with different wants, looking for a path forward. If people aren't used to negotiating openly in low-stakes settings, it’s much harder to handle high-stakes conversations when they do arrive.

A negotiation mindset gives people the tools, and perhaps more importantly, the permission to practice these skills. Founders, of course, can set the tone here. When leaders role-model negotiation as a normal part of decision-making, teams are more likely to follow suit.

Principle 3: a negotiation mindset makes commercial sense

Encouraging negotiation as a core skill doesn’t just help your team manage internal friction, it makes it a more valuable asset, too. When employees feel confident pushing back and negotiating openly, they’re often better equipped for commercial success, from securing deals to handling tricky conversations with partners or customers.

Beyond the more obvious business wins, normalising negotiation can also save startups time and money by reducing staff turnover. When workplaces are more open, people feel comfortable discussing their needs – whether that is asking for a pay rise, flexible working hours or a new role, instead of quietly disengaging or jumping ship.

A negotiation mindset isn’t about turning every conversation into a battleground. It’s about creating an environment where feedback isn’t feared, where differences don’t get buried, and where tough conversations are met with curiosity. Ultimately, successful negotiation depends on genuinely understanding the other person’s perspective enough to find solutions that work for everyone. So when you encourage a negotiation mindset, you’re also building empathy. That’s a win not just for your startup, but for the ecosystem, and society, too.

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