Article Tags : 15 signs of bad deals . bad business deals . bad deals . business legal issues . dishonesty in business . good deals . making good deals . protecting your business deals . small business deals . spotting bad deals
A good deal can bring you a lot of money and multiple opportunities. But, good deals can be toppled by bad deals before the good deals pay off and reach their full potential.
Bad deals come in myriad ways, but I want to point out things that bad deals typically have in common.
1. Poor risk assessment
2. Incompetent people
3. Untrustworthy people
4. Lack of clarity
5. No meaningful plans – even a good outline
6. Lack of focus – chasing too many ideas at once
7. A true purpose beyond just making money
8. A dysfunctional culture
9. Too many chiefs – not enough workers
10. Poor cash management
11. Lack of resourcefulness
12. Arrogance instead of humility
13. Lack of agility to adapt to Plan B, Plan C, Plan D, etc.
14. Not having a compelling plan or offer
15. Being overly tactical and not strategic
Most of all, there is an ever growing dishonesty where stealing and misrepresentation is rampant. Good, even great deals (and people’s lives) are destroyed by greed and manipulative practices.
Unfortunately, you have to examine all assumptions and make people explicitly accountable.
The worst type – sociopaths like Barry Minkow who bilked people, went to jail, then became supposedly reformed, even a pastor. But, he reported Lennar falsely was a bad company and the shorted the stock. This cost Lennar $400 million. Now, Minkow’s going back to jail for another 5 years.
The news is full of frauds. Good deals – too good to be true deals – constantly sucker us. It’s hard to defend yourself.
Remember, as the referee says when he tells each boxer the rules before the fight starts – protect yourself at all times – and be very aware of the 15 signs of bad deals.