Musings at the intersection of business and life

Give a little, get a lot

Business Savvy
January 16, 2009 by Kathleen Allen

One of the most important lessons I've learned in my years as an entrepreneur and investor is not to get greedy, not to hold out for the bigger deal, and not to negotiate a win-lose situation.  I have seen entrepreneurs turn down great offers because their egos told them that their companies could command a bigger number.  Trouble is, these days offers don't come often, so the risk of turning down a good offer in hopes of getting a great offer is huge.  One entrepreneur I knew, let's call him Dan, had a large commercial property that he believed was worth several million dollars, despite anything brokers told him to the contrary.  He turned down offer after offer that would have given him a nice return on his investment.  He did this over a period of several years until eventually commercial growth had moved so far north of his property that its value actually declined because it was no longer in a desireable area.  Dan never recouped his original investment--he lost it completely to greed. 

I never forgot that man, and so in all my business dealings I strive for a win-win outcome so that the people I do business with will want to do business with me again.  If you do that, deals will keep coming.  And isn't it better to have a string of good deals than bet everything on the one big one that might ever happen?  Remember Dan when you go to sell a business, a piece of property, or anything else for that matter.  Greed really is the enemy of great.

Related tags: deal, greed, risk, uncertainty

Comments

Another timely commentary, Peter. Applicable to non-business dealings, too.

7:30 a.m. | January 16, 2009 Moira

Thanks, Moira, though I'll have to give credit to my co-contributor Kathleen for writing this one. I agree with her 100% -- a bad deal can poison the well for a LONG time. It's not worth it. Much better to leave behind a trail of good feelings and good will, than a trail of distrust and disappointment -- in business and in life.

9:18 a.m. | January 19, 2009 Peter Economy
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