A big error made by many young businesses is entering the chase for the big deals. Yes, we all like the big ones. But big sales, big projects come with big responsibility and big liability the young businesses are seldom prepared to handle.
Keep in mind that a big deal gone wrong can easily bring a business down. What if payment is late? Worse yet, what if you can’t collect?
When the big deal comes along you have you ask yourself, “why are they bringing this deal to me?” Don’t listen to your ego whispering in your ear about how great you are. Think for a moment that you might be chosen for a reason. You’ll go for it. You’ll take the terms. And, if things don’t go well, you won’t have the resources to fight back. That might be why they chose your business.
Clients call me often with excitement about a huge ‘game changing’ opportunity. “This will put us on the map,” they tell me.
Sometimes the big deals take small businesses off the map.
Be careful. Have outside eyes review your contract and terms. Smart lawyers can build crushing clauses into a deal with a small business. Resist the desire to dive in. Ask yourself, “what will be the consequences if this deal goes bad?”
There are times when it’s better to walk away from a big deal. And, there are times when the big deal is a good break. You don’t always need to say no to a big deal that might stretch your capacity. But don’t let the allure of making huge bucks blind you to the realities wrapped inside the deal. Pay attention. Do your homework. Review all documentation.
Start by answering this question honestly: Why are they bringing this deal to me?
Chris Reich, Business Adviser