Why founders should be wary of de-valuing themselves during negotiations

The core of negotiation is about navigating uncertainty, and if you’re in the world of startups, uncertainty is something you’ve already embraced.

Unlike traditional business owners with proven business models, products, and services, you’re operating in a space where creativity and adaptability are fundamental to your success.

You’re invested in your business on every level, with more at stake than most. But when it comes to negotiation, the riskiest thing you can do is let the fear of devaluing yourself hold you back.

At a human level, we all need to feel valued. For startup founders, this desire goes beyond personal validation—it extends to the business you’re building. You don’t just want to be recognised for the value you bring as an individual, you want the value of your business to be acknowledged and exchanged appropriately.

However, when fear enters the picture, it can lead to decisions that undermine your negotiation success.

Here are four ways that the fear of devaluing yourself might show up during negotiations, and how to avoid falling into these traps:

1. Subconsciously negotiating with yourself

If you’re negotiating your first deal with a customer, it’s easy to start doubting your own value.

You might catch yourself listening to that pesky inner voice, second-guessing what the customer will or won’t accept. Before you know it, you’ve already adjusted your offer in your head, lowering your ask or conceding terms without even realising it.

This “self-negotiation” is a common trap and often leads you to accept less than you initially intended, costing you greatly. The key here is to stay out of your own head—let the customer respond before you start amending your deal.

2. Fear of losing the deal

Author Glin Bayley

In a startup, closing deals can feel like life or death for the business—sometimes quite literally, as getting revenue in the door might be what keeps the lights on.

When you’re operating under that pressure, the fear of losing the deal can be overwhelming. This fear makes you hesitant to push back on terms or ask for what you truly want.

You worry that being too assertive will scare the client away. But giving in too quickly can reduce the value of the deal, limiting the potential growth of your business.

Remember, negotiation is about finding the right fit for both parties and holding firm on key points helps establish your worth, we often value more what is hard to obtain than that which is easily given.

3. Focus on price rather than value

Startups often fall into the trap of thinking that lowering the price is the only way to secure a deal, especially when they fear rejection.

This usually comes from a lack of confidence in explaining the broader value your business offers beyond just the price tag. As a result, you might reduce your price too quickly in an effort to close the deal.

But focusing on price alone undercuts the opportunity to showcase the real benefits you offer—whether it’s your innovative approach, personalised service, or the long-term savings your solution provides.

Instead of dropping the price, highlight the unique value your business brings to the table.

4. Avoiding discomfort

You’ve already embraced a lot of discomfort by taking the plunge into the startup world, but negotiation requires you to get even more comfortable with it.

Negotiating can be uncomfortable, especially when the stakes feel high and you’re facing a potential client who holds the key to a much-needed deal. The fear of tension or awkwardness can lead you to back down too quickly or accept terms you’re not happy with.

But negotiation is meant to be uncomfortable—it’s where you appropriately stand your ground, clarify expectations, and ultimately reach an agreement that works for both sides.

Embrace the discomfort as part of the process.

Fear, whether it’s fear of rejection, fear of losing the deal, or fear of discomfort, can cause you to undermine your own value in negotiations. But you didn’t take the leap into building a business just to settle for less.

By preparing thoroughly, communicating the unique value of your business, and staying confident in your worth, you can overcome these fears and set the stage for successful deals that reflect the true potential of your startup.