4 Signs You’re About to Enter a Bad Business Deal

March 10, 2017

10:30 am

We all want to believe that people are on the up and up when it comes to making a deal. However, sometimes going into a negotiation with a company or client turns out to be far from what you expected.

We asked four entrepreneurs to share early warning signs of a bad business deal and how to avoid it. Take a look at their answers below and keep your wits about you during a negotiation:

They Dream Rather Than Do

This isn’t the case for every business, but I’ve come across a few startups that attempt to offer a piece of the pie ‘when they hit it big” or ‘when they get funding’ in lieu of paying for that essential marketing or publicity launch campaign. These ‘offers’ don’t fly with my business model. Everyone has ideas. Execution and taking those ideas to market is crucial to success.

– Angela Delmedico of Elev8 Consulting Group

They Don’t Explain Their Reasoning

Every company is different, but I have generally found that folks who rely on faulty business practices share a number of common traits. One of them is an over-reliance of concepts, like career advancement, or the insistence that they offer a great opportunity coupled with an unwillingness/inability to elaborate further.

-Steven Buchwald of Buchwald & Associates

They Make Late Payments

We have traditionally been very careful regarding the clients we choose to work with. We carefully vet each client to ensure they are a good fit and we see strong, long-term SEO potential. Unfortunately, if your clients can’t pay their bills, they may not be managing their business well, and you may be the next victim trying to collect on an unpaid balance. It’s important to not let your clients get behind on payment.

– Chris Rodgers of Colorado SEO Pros

The Deal Seems Too Good to Be True

Listen to your intuition. If it’s too good to be true and everything seems to be moving too fast, then it’s time to slow down. Plant your feet into something solid and recenter yourself and your view of the business.

-Arry Yu of Gift Starter

Learn more about negotiations for your business here on Tech.Co

This article is courtesy of BusinessCollective, featuring thought leadership content by ambitious young entrepreneurs, executives & small business owners.

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