From time to time startup founders, regulatory consultants, and corporate business developers spend their time exploring new opportunities and building customer relationships.

I have learned that it’s important to say “no” to a project or an opportunity very early on, even if it’s commercially interesting or has great potential – if it requires you to spend a disproportionate amount of time or energy on fine-tuning minor details or endlessly clarifying slightly diverging views.

(To be clear – I’m talking about equal partnerships where both sides have approximately the same power and influence and size. Obviously, if you are a small startup pursuing a huge partnership opportunity with a major bank, these recommendations won’t apply, simply because you want them more than they want you, and their decision-making process is something you cannot change).

Here are my 5 red flags to watch for:

• More than 3 calls are required to get to know each other and reach “yes” or “no” in principle.
• Long breaks of silence during negotiations (longer than a week, when you know the time is critical for the other side).
• A lot of time (more than 2 emails) was spent on minor clarifications around NDA, conflicts of interest, termination provisions, and other non-commercial aspects.
• Unreasonable demands or one-sided penalties.
• Last-minute requests to (adversely for you) revise previously agreed-upon terms. 

What are your non-negotiables or warning signs when it comes to closing deals and negotiations? I’m curious to know! 🤔