Part of your extensive entrepreneurial portfolio is the need to be your business’ dealmaker. These tips, as to how get this right, can ensure continued business growth.
As an entrepreneur, you are often called in to assume a number of different business roles – financer, administrator and sales manager, for example, in addition to being the business’ overall strategist. As a result, depending on the business’ requirements, you could be wearing a different hat – and one of those is ‘Dealmaker’.
Dealmakers not only close deals, they build empires. However, being a dealmaker is challenging and something that you need to work at – as while you may possess a natural charisma for selling, there is more to securing deals than a winning smile.
It requires a balance of a number of components that not only take the business growth requirements into perspective, but also the broader relationship to ensure it’s a win-win all round.
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Understand the other side
In fact, understanding the other side is critical. It is something that takes time and effort, but is certainly worth the investment. Whether it is a partner you want on-board, or an investment you require, knowing what you are up against, what their pain points are and what solutions you bring to the table ensures you are able to speak ‘their language’ and bring a fresh approach – which is often lacking.
Too often, business people enter negotiations with not only a limited view, but a one-sided opinion – which means common ground is harder to establish.
Do what’s right for the business
No one knows your market better than you do, and sometimes negotiations don’t go the way you had hoped, but that’s okay. The important thing is that you do what is right for your business.
Stand with integrity and sometimes that means ‘no deal’. Investors and franchisees should be selected not based on how deep their pockets are, but rather in terms of their passion and shared vision – which goes a long way in ensuring success.
Leave emotions at the door
One of the biggest stumbling blocks for entrepreneurs is emotions. Good deals are never made with emotion at the centre, and those that do are likely to fail. Good deals are those that look at the numbers, the statistics and the future opportunities. They are also the ones that ensure integrity and a vested interest are foundational blocks to the numbers.
These are the deals that work – the ones that last. And while you are passionate about your brand, don’t let emotions cloud your judgement. It is for this reason that you prepare and plan, and then prepare and plan again, to ensure return on investment (ROI), as well as that you are creative and flexible in your approach, but unwavering in your foundational values.
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Jump in with two feet
Successful expansion is often a result of organic growth, and a by-product of relationships and joint ventures. You cannot use a cookie cutter model for deals. Every deal and every relationship is different and as such, it’s essential that you understand this before entering into negotiations.
However, with all the preparation in the world, successful deal-making takes practice and the only way to start is to jump in and get your feet wet. This also means you are going to fail; it’s inevitable as you learn to be a dealmaker. Don’t be disheartened – it happens to the best of us. Keep going till you get it right.
Be prepared to work hard. Take advice and learn as you go - and remember to always follow your dream.