One of the most dangerous words in business is worth it. As an entrepreneur, you’ve heard this over and over again. But it’s worth repeating. It’s not worth it to do bad business.
It’s not worth it to do bad business. I know lots of people who have had their businesses destroyed because they made some bad decisions. When they did, they ended up with debt and a big mess to clean up. I’ve seen this happen over and over again.
Most people underestimate how much goes into running a business. You must deal with things that the normal employee does not. Irate consumers, low-profit margins, and missing inventory are all common occurrences. Another issue is determining whether taking money in particular circumstances is bad business. To put it another way, you may have a potential source of income, but you believe it is not the greatest option. But you also need as much cash as possible, so what do you do?
Before you can respond to that question, you must first define what makes terrible business. A good definition of terrible business would be anything that costs you more in the long run than it brings in. Customers, time, money, and other resources are a handful of the ways it can cost you money.
According to this concept, engaging in a lousy business is less profitable, even if you could use the money right now. To see how any trades or transactions may finally work out, you must look at the larger picture and deeper into the future.
The problem is that you can’t always be certain. Assume a con artist shows up and promises to resurface your parking lot at a low price. Your gut will be sending you signals at this point, but the con guy is betting that your desire for a good deal (the con will say they’re using your greed) will triumph over your gut emotions. Don’t allow this to happen; instead, trust your instincts.
Con guys aren’t the only ones that do terrible business. A lot of what ends up being “poor” is due to a lack of communication. In the long term, this might cost you a lot more. You will believe you are performing proper business, yet a misunderstanding will arise when you least expect it. There may be bitter sentiments on all sides, and they could persist for years if you don’t act to resolve the issue.
The truth is that you won’t always be able to avoid doing “poor business.” But, keeping to key guiding principles when running your business can save you a lot of time and effort. It wasn’t a big deal when I applied for financing at a vehicle dealership. What happened next took me by surprise. A “secret” to dealing with credit agencies was revealed to me by a finance department employee. He was teaching me how to game the system. He thought I’d appreciate his “help,” but I didn’t. But I was grateful since he informed me about the type of dealership I would be dealing with. Needless to say, I moved on with my business.
What is the story’s moral? Do your best to be fair and honest, and never do business with those who don’t care about being honest or fair.