One business deal could change the entire future of your company. It might seem like an exaggeration, but we promise, it isn’t. This is absolutely true, and that’s why a lot of work goes into hooking that big fish and reeling it in. You see this all the time in the business world. Owners do everything they can to win over the major client that could change everything for them. Now, you might say, this means that a business deal will always be financially beneficial for your business. But don’t be so sure. Handled the wrong way a big business deal could also lead to your downfall.
The Fine Print
When you create a new deal with a business or partner, you will be signing a contract. That contract will have terms and conditions that each side must abide by. If this contract is broken, it can lead to legal issues and financial loss. But that broke deal is nothing compared to the actual damage it can cause to your company. First, you will probably lose ties with that business. Now whether they broke the deal or not they could still be a valuable asset to your business. You can’t say that just because one deal when up in smoke, they are worthless. That’s just not true.
This is why you should always have a lawyer or a team of legal staff look over any contract like this. They will be able to check that it is in your best interest to sign. They will also ensure that you don’t accidentally break or breach your side of the deal.
Debt And Collect
You’d be surprised how common debts are in the business community. Even overdue debts are quite a regular occurrence for an obvious reason. Essentially a business will buy a product or service, but they won’t pay for it until they have made money from selling it on. Due to the invoices are late, unpaid and plunge the other company into financial trouble. If you think this means you need to get back your money that’s owed as quickly as possible, you’re right. But again, you do need to be careful here. You don’t want to end up in the position where you’re demanding money owed and destroying the relationship with that business.
Instead, you should use professional debt collection services. Businesses like this handle the collection of debt you are owed with tact and sensitivity. You might storm in and demand your money back. But they can hopefully secure the payment without destroying an important business relationship.
Last but not least, you might be tempted to offer false premises and ensure that you get an investor or client to sign on. A brilliant example of this would be SEO companies. Some SEO companies guarantee they can get businesses on page one of the SERPs. Expert marketers know this is impossible and that lie will inevitably damage their reputation. It could even lead businesses to persuade other companies not to use their service. That’s why it’s always best, to be honest and open when forming new deals with business owners or clients.