If you think you’ve been screwed you probably have

Being stuck in the middle hurts  

When you go into business you leave the protected and cosseted world of being an individual. Now you are fully exposed to commercial law at its finest.

• You will never have all the information you need to make a decision.
• Contracts are legally binding – Yes this is obvious, but many people entering business think that they can change their minds at a later date and the other person will be reasonable. You are required to perform. I see this mistake all the time. Make friends with your lawyer.
• You don’t have time to do all the homework you need to.
• The other party is under no obligation to pass on any information, other than that which they are legally obliged to for the formation of a contract.
• They may pressure you into making a deal now (the ticking clock approach, and the ‘this is a one-time opportunity’ approach).
• If you don’t include all your costs and the conditions precedent for you in the contract you may not get them.
• You are required to seek your own tax and accounting advice. Your agreed price may end up costing you more than you thought.
• Some people get tricky with the conditions and pricing of their services/products. This can come back to bite you at a later date.

All this is a fun learning curve – but never forget that it is a learning curve.

The other person will always know something that you don’t. A good businessperson leaves something on the table to keep the other party in a long-term relationship. However, some people can’t help themselves and they have to screw every last penny out of a contract.

The worst are those who profess to wanting a win-win outcome but by their actions don’t care at all. These are usually the big corporate purchasers who tell the media that they want a sustainable supplier base, and then tell their consumers that they get them the best price they can. You are stuck in the middle getting screwed by someone with good PR – and it hurts.

Trust your instincts, and find ways to duck and weave, delay decisions, build in options and variations, build in ratchet points or other mechanisms to revisit price, or other ways to make sure that being screwed doesn’t destroy your business.