Entrepreneurs are constantly searching for business opportunities. However, this is not an easy task. Business opportunities come in many forms and shapes from the next big idea, to strategic alliances, to expansions. The hardest part is to find good deals; to separate the good deal from a bad deal. The problem is that a bad deal, unless you are skilled at the art of identifying them, many times are dressed as a good deal.
So how do you identify a bad deal before is drains your hard earned capital?
1. Bad reputation– Bad reputation of the business opportunity presenter or the industry itself. History repeats itself and when you ignore it you become the perfect victim for the bad deal to creep into our lives. Remember that past behavior is one of the best indicators of future behavior. Next time when a deal is presented to you, study the business opportunity AND the reputation of the presenter. If his/her reputation is that of being a back stabber or cheater, you are a fool to think that you will be treated differently. If you are thinking of a joint venture, do not just get stuck at the gazillion dollar business opportunity.
History repeats itself and when you ignore it you become the perfect victim for the bad deal to creep into your life.
2. Not enough action – Watch out for the big talkers, specially those who love to talk you out of your hard earned money. Some of them mean no harm, they are just enthusiastic about their idea. However, talk is cheap in the business world. Action speaks a million words and it is worth every dollar of it. Making promises is easy, what separates the successful entrepreneur from the failures is delivering on the promises. Therefore, protect yourself from talkers that make big promises but never take off; they never launch their ideas. Build a reputation of action, achieving measurable and long-lasting milestones in your deals. Remember that the road to quick riches is known to be a treacherous nightmare.
Watch out for the big talkers, specially those who love to talk you out of your hard earned money.
3. Desperation – You must avoid negotiating or evaluating business opportunities from a desperate position. Your opposition cannot smell your desperation, otherwise you become the victim of unscrupulous people who are willing to take advantage of you. Also, be cautious of desperate people coming to you with big ideas with big returns and providing you the world for little money, carefully analyze the data offered and remember that desperate people are know to do desperate things and that includes lie and cheat.
Good business opportunities are everywhere. Everyday new business opportunities emerge. Therefore, do not think that you must grab the first business opportunity presented to you. Learn that not all opportunities are good opportunities. I hope you find this information helpful in avoiding a bad deal.