As a business owner and entrepreneur, negotiation is practically in your blood. While the majority of your dealings have been beneficial, this isn’t the case for every transaction.
There are a few deals in the past that you wished you had turned down. How do you know when it’s time to walk away from a business deal?
When the terms keep changing
Many agreements start as verbal agreements but all business deals should be enforced by contracts. That doesn’t mean that an initial verbal deal shouldn’t be honored, just that it should also be drafted in writing.
Unfortunately, by the time your counterpart has written up the agreements, you find that the terms have changed. A party that constantly wants to make last-minute changes might not be someone you want to deal with long-term.
When the deal is too good to be true
You’ve been in business a long time so have a fairly good idea on what is deliverable and what isn’t. If a deal sounds too good to be true then that’s most likely the case. Trust the instincts that have served you so well over the years and walk away from any deal that sounds unrealistic.
When the deal is not in line with your values
You may be looking to branch out and delve into other markets. This is understandable and it can certainly be rewarding for the company. Nonetheless, it’s important that you believe in any endeavor and that your values are not compromised. A deal that compromises your values may be profitable in the short-term, but it’s probably not something you’re going to be able to live with long-term.
Business transactions can be complex and it’s important to know your rights when completing or backing out of a transaction. Seek legal guidance to ensure that you remain protected.