Dianne Pajo
When an opportunity for your business to make money arrives, it’s easy to get excited. But that opportunity may not always go well. You can better protect yourself from these disappointments by learning the five things you should do to avoid bad business deals.
Research Your Future Partners
Before you commit to working with anyone, make sure you do some background research first. Start by talking to others who have worked with them. They may tell you that partnering with them can be beneficial or warn you not to do so.
Meet With Your Future Partner
Before signing any agreement, sit down with your potential new partner/client and get a sense of their personality. If they come off as prickly or even hard to please, a future business relationship may not work out. You should consider walking away from this opportunity.
Make Sure To Express Yourself Clearly
During your meetings, ensure you are precise in describing your business’s capabilities and what you can provide. This caution will prevent any deals from going sour because your partner/client thought you were providing something completely different.
Learn To Detect Poor Business Practices
Learning to recognize deceptive trade practices is another way you can avoid bad business deals. After you gain this knowledge, you can read a contract and recognize parts of the agreement that are unfair. That will save you the experience of getting into a contract that puts your company at a disadvantage.
Listen to Your Instincts
If your business is about to close a deal with another firm and something feels wrong, listen to your instincts. Although you may not want to back out of the deal entirely, slow things down before you commit so that you can do some extra research. There’s a good chance that your gut feeling is correct.
Taking these actions will help you protect yourself and your business. You can spend your time pursuing more fruitful opportunities that will truly benefit your company.
