Tag Archives: Extension

How Do You Create a Win-Win Situation? Five Suggestions

Situation: A company collaborates with a large client to provide services to their mutual market. The company wants to offer similar services to secondary markets not currently of interest to the client. The challenge is that the client is very conservative; their current priorities are forcing long delays responding to the company’s requests, and the primary contacts within the client will not take any risks arguing the company’s case to their upper management. How can the company approach this situation to create a win-win situation with this client?

Advice from the CEOs:

  • Since the services provided combine the capabilities of the two companies, it is necessary to develop a strong case to show how the proposed extension of services will benefit the client. Without their agreement the service offering is compromised.
  • One option is to offer a no-risk revenue share or royalty arrangement to the client in exchange for their agreement to allow you to build the secondary markets.
  • A second option is to offer to sell a minority share of your company to the client in exchange for your ability to develop the secondary markets. The deal could include an option to make a larger investment in your company if your strategy plays out profitably.
  • A third option is to raise money and purchase rights to the client’s capabilities outright. It is worth exploring whether the client would be open to this.
  • Find an informal setting to ask the client’s CEO for advice on how you should proceed. Have your ducks in line to offer options if the CEO responds positively.

How Do You Respond to a Regulatory Wild Card? Seven Suggestions

Situation: A company that has been in business for several generations has been approached by a government official with an unexpected regulatory requirement and a stringent timeline for compliance. This was completely unexpected and it will be disruptive to comply. How do you respond to a regulatory wild card?

  • Approach the agency and negotiate an extension of the deadline, or a series of steps that will bring you into compliance but under conditions so that compliance does not disrupt your business and workload.
  • Dig to determine the ultimate reason behind this development. Is it a neighborhood evolution issue where new neighbors want you or your business out of the way? If so, is there a win-win alternative that gives you a new or better location in exchange for moving.
  • Seek legal assistance – local lawyers may be knowledgeable of the officials involved or their superiors, and will know the language to use to ask for the leeway that you require.
  • Circle the problem from every angle – look for other city contacts that can assist.
  • Trade a tax concession for compliance – particularly if the issue is a long-standing situation that has just now been brought forward.
  • Look for a way to turn the problem into an opportunity by solving the problem uniquely in a way that favors you.
  • Consider asking them to help solve the problem.
  • Do NOT respond with an attack. Local officials can be in place for a long time and may hold a grudge.