Unrealistic budgets and miscalculating costs are the greatest risks to a growing company, especially startups. - Oren Klaff

Seizing Situational Status Here are the steps involved in elevating your status in any situation. You will recognize some of these actions from framing, and for good reason. Frame control and status are closely related, as are the pitch techniques you will learn in Chapter 4. 1. Politely ignore power rituals and avoid beta traps. 2. Be unaffected by your customer’s global status (meaning the customer’s status inside and outside the business environment). 3. Look for opportunities to perpetrate small denials and defiances that strengthen your frame and elevate your status. 4. As soon as you take power, quickly move the discussion into an area where you are the domain expert, where your knowledge and information are unassailable by your audience. 5. Apply a prize frame by positioning yourself as the reward for making the decision to do business with you. 6. Confirm your alpha status by making your customer, who now temporarily occupies a beta position, make a statement that qualifies your higher status.

If you have to explain your authority, power, position, leverage, and advantage, you do not hold the stronger frame.

Start-ups often prepare absurdly aggressive and optimistic plans, which have a very low likelihood of success, just to maximize the company’s perceived dollar value.” Your financial projections, whether for a product or a company, are supposed to answer such basic questions as, How strong is the company? What if plans go awry, does the company have enough cash to last a few bad quarters? Do you know how to budget well?