What’s in a Good Deal?

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There are two parts to any good deal: First, the deal itself and second, the people involved in the deal.

Firstly, the deal itself must be economically sound, meaning that it meets criteria to be feasible for both parties. For example, the other person(s) outlines the priorities that best describe what is to be accomplished. You listen to the opportunity to understand the scope of work and the expectations while reviewing your mental checklist that make this deal attractive for your business. If the criteria for both parties match up, then the project is feasible.  If the criteria do not match up, then it will not be successful. Of course there can be some negotiations between the groups to reach a mutually beneficial agreement.

Secondly, the people involved in the deal must have a mutual respect and trust for each other. The people may have developed a relationship through working together before, networking, or referrals. In the circumstance of referrals, this is the first chance that the two parties have to get to know one another. During the initial meeting, people have to determine outside of the deal criteria whether they want to engage further with the other person.

If the people involved in the deal reach a mutual understanding of trust and credibility, and the deal itself meets the criteria for attractive business, then the deal can be successful. On the other hand, even if the deal is feasible but there is no connection between the people involved, then the deal may not be successful. We want to work with those that we like because we need to trust them to be successful with our time, money and goals.

Think about this during your next business development opportunity. What are your criteria for a good deal? How well do you connect with the other person(s) involved in the deal? Do your expectations and personalities align?

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