Always be willing to walk away
Whether you’re looking to close a contract with a new client, settle on a deal with a vendor, or reach agreement to sell your business, you always need to be prepared to say “no.”
When you don’t walk away from bad terms, you inevitably end up regretting the decision.
Pressure to complete a deal comes in many forms, including:
- Feeling financial desperation. Perhaps you believe you need the cash to keep your business running as-is or you have personal needs that must be met.
- Believing that you have come too far to let go. This often manifests itself for big client contracts or M&A conversations that have gone on for a long time and you aren’t willing to let all that time seem “wasted.”
- Wearing rose-colored glasses. The excitement of doing a deal often clouds judgement and makes putting up the “W” more important than figuring out if the “win” is really a “loss.”
- Embracing what could be rather than what is. If you’re trying to land a big name client, you may feel that the aura it gives your business exceeds any bad terms.
Even worse than not being willing to walk away is the other party picking up on that inclination.
The solution is to commit to what parameters must be met for deal to get done — and then sticking to them. Don’t let excitement, desperation, or hope stand in for sound, analytical decision-making.