The Art of the Quick Deal02/01/2013
The NFL free agency system creates a multitude of multi million dollar deals as Free Agents and recently drafted rookies are signed to new contracts very quickly. Typically, quick deals are dangerous and can lead to disagreements, misunderstandings or even contract disputes. In the case of the NFL however, these quick deals have been considered and reconsidered several times as team’s research their free agent and draft needs. Coaches and General Managers as well as Players and their Agents have all had plenty of time to reflect on the ramifications of these deals. But what about other quick business deals?
Some simple straight forward deals like minor purchases or very short term contracts can be considered on the fly due to the low risk they offer to the business owner. The larger the risk involved in the deal, the more likely it is that an owner should take their time in reviewing all of the options, parameters and potential problems involved before committing to it. There are times when what appears to be a potentially high risk deal can be made quickly without the business owner assuming a level of risk that causes worry.
Deals where the business owner has had an opportunity to study the situation before the deal even presents itself can be very profitable at substantially reduced risk. Preparation for a possible deal such as purchasing a competitor, offering a new, highly sought after product line or expanding your sales territory are all examples of deals where an owner can be prepared to strike at a moments notice and reduce his or her risk by being informed.
Every business deal presents some level of risk, things may not work out as well as expected, and like the NFL a key player may not perform the way you projected but preparation will always reduce the risk of a deal going bad