Much of business is making deals.
A deal is an agreement that reached after negotiation.
Agreement is a mutual commitment between two or more people.
So a deal is a type of contract that two parties agree to follow.
When buying or selling you are making a deal.
Some deals are very simple.
Buying groceries is a simple, transactional deal between you and the store.
Other deals are more complex.
In business we often hear terms like business deal, and financial deal.
Typically, the more money involved, the more complex the deal becomes.
While making a deal with another company or person, there are a few things that you should remember.
1. Take Control
When you are negotiating with another company, take charge of the situation.
It is important to be in control of the deal initially to ensure a smooth flow of positive activity.
Being in control, does not necessarily mean you declare your hand first.
When you control the deal you get to set the parameters, the pace, timing, and value.
Try to be in control of the entire situation when you are dealing with another person or company.
2. Get Paid as Soon as Possible
While dealing for the first time with a new customer, it is best to collect the money sooner than later.
Deposits, advances, and front-loaded payment schedules are ways of judging the reliability of the other company.
Cash is always safer than cheques in deals.
A bankers draft or certified cheques are both safer than a personal cheque.
3. Know Your Limits
While dealing with money matters, do not move beyond your budget.
Before you enter into any negotiations, set your walk-away price.
This is the price at which it no longer makes sense to complete the deal.
Once you have set your walk-away price – stick to it.
4. Be Clear with the Other Party
You should always communicate clearly and specifically about your expectations.
Always be precise.
Never leave any room for interpretation or misunderstandings.
Make sure you both have a clear understanding of every detail of the deal before finalising the signatures.
5. Have conditions Attached to Your Deal.
In a complex deal, make the key items subject to your approval.
If payment is dependent upon delivery, self inspect everything and get the other party to do the same.
If you are the customer, don’t pay until you have received and inspected the deliverable.
If you are the supplier, don’t begin work until you have received the deposit.
Likewise, don’t proceed to the next phase unless the customer has paid for everything delivered to date.
6. Be the Boss
Regardless whether you are the customer or supplier, try to be the boss in all your deals.
Create a situation in the deal where the other party will report to you.
Ask the other part for reports on the various stages of the deal.
Even if that report is to confirm their acceptance of your work.
7. A Fair Deal is a Good Deal for Everyone
There are some business people who are only happy when they think they have “beaten” the other part in a deal.
But this is a very short sighted view.
When a deal goes well for both parties, it can lay the groundwork for future work together.
But if one party feels the deal was one-sided, they are unlikely to want to deal with the same company or person again.
Its way more expensive to find new customers, than to win repeat business from an existing customer.
So treat your customers fairly and they will be with you for a long time.