I recently had a meeting with an entrepreneur who is pitching me on making an investment in his company. After the meeting, he sent me an email saying he had made a cardinal negotiating mistake in the meeting by revealing to me that his cash position was very, very low. I wrote back to him telling him that I thought his revealing his cash position wasn't a mistake at all. Rather, his sharing that information with me:
- Built trust that he was a straightforward, high integrity entrepreneur
- Gave me a sense of urgency about making a decision about the investment so as not to lead the entrepreneur on.