“All that glitters is not gold.” We have all heard that wise saying before and when it comes to business this saying is absolutely relevant. Business deals are what business is all about, as a business owner, you’re always on the lookout for the next lucrative opportunity. But sometimes there are just some business deals that are just well, a bit dodgy. These unsavoury deals can cost you time, money and even your business’ reputation if you’re not careful.
This article can’t offer you ways to avoid these business deals completely. Unfortunately they can happen to even the most business savvy individual. What this article will offer you is solid business advice about identifying these business deals. Bad business deals are bad for business and that’s a fact, but what counts is fine tuning your business sense in regards to identifying them.
If Ii Sounds too Good to be True it Probably is
If a client appears to be offering you a business deal that appears to be just a little too good to be true, take a step back and evaluate the offer carefully. Not every business deal is what it seems. Don’t be afraid to question any deals that come your way. Part of being able to recognise bad business deals is figuring out when to question offers that appear to be too ideal.
Find out who You are Doing Business With
Being able to spot a bad business deal can be done via some good old fashioned research. You should know who you are doing business with at all times. If a client or company is unable to provide proof of their company and/or they are a registered business, avoid doing business with them. Any client or company who cannot provide registered proof of their business is not worth doing business with.
Consider Your Options
Not all bad business deals are easy to identify, sometimes only after the deal is closed the cracks start to appear. By then it’s too late, however if you consider each of your business deals carefully you stand a much better chance of avoiding these deals when they pop up.
Don’t settle for the first deal that’s laid out on the table, as a business owner you should position yourself strategically by giving yourself options. The more business deals you have to choose from, the more likely you’re going to be able to weed out offers from clients that don’t really add up.
Delays, Delays and More Delays
One of the most frustrating things about running your own business is that from time to time some deals just take forever to close. It could be anything from financial processes to ironing out clauses in a contract, whatever it is the longer these circumstances continue you should perceive them to be red flags.
Stalling tactics are the hallmark of a bad business deal, so if a client or company is continually holding up a business deal process - pull the plug on it.
Communication Is Key
With all the smartphone devices and the technology at our finger tips that enable us to communicate via email etc. it should never be too difficult to keep in touch with individuals you are conducting business deals with. Another dead give-away about a rotten business deal is not being able to stay in touch with who you are doing business with.
Doing business with these clients is perilous because if they can’t respond to your messages in a timely fashion, just imagine the kind of business deals they have to offer.
Leaving yourself open to bad business deals is never a good idea, but if you use the pointers in this article you’ll be able to get yourself out of some potentially disastrous deals. Being a business owner isn’t just about closing every deal you stumble upon it’s about avoiding the ones that won’t benefit you or your business as well.