It’s easy to remember the successful deals — the ones that go through without a hitch. But it’s deals that fall apart that provide the greatest learning tools in business. In most cases, the lesson is simple: Don’t get hung up on your failures.
I’ve had a few deals go sour in my own life, the last one a few months ago when my wife and I thought we had sold our house. To make a long story short, we accepted an offer after the buyer presented us with a letter stating he was preapproved for a mortgage loan. But one week before closing, without explanation, the buyer switched mortgage companies.
Needless to say, the loan didn’t close. As a result, we put our house back on the market.
It was a frustrating lesson, compounded by the fact that we had already moved into a new house. But that was not my first taste of failure. About six years ago, when I was in international trade, an experience taught me there are many factors that can kill an otherwise solid deal. It’s difficult to pursue compensation for your losses through the legal system, and often, going to court translates into hefty bills and long waits.
In that instance, a foreign business partner absconded with more than $1 million of our company’s investment in a joint venture to produce a new airgun. Scorned, the company president and I stormed into court with a passel of attorneys and demanded the judge force our partners to hand over either our original investment (plus interest) or the patent for the product.
After nearly two years of expensive litigation, we settled out of court for an unrestricted license to exploit the patent.
Both experiences taught me valuable lessons. First, there is always another deal just around the corner, and it’s often better than the one that collapses.
It reminds me of what the CEO of a local company once shared with me, his so-called secrets for success. “Keep your ear to the ground and listen closely,” he said. “You never know when the right opportunity will present itself.”
I originally thought he was a pure opportunist, jumping on every chance he could and counting on the numbers game to carry him to riches. In retrospect, I see he meant something completely different. He meant there are many opportunities in business, and in life, which come your way. You should investigate as many as you can without putting yourself at too high a risk.
The second lesson is similar: Don’t allow yourself to get too caught up in the opportunities that don’t work. If you fall into that trap, you’ll fail to capitalize on the ones that do. It’s the difference between closing deals and watching them fall apart around you.
In the case of my former company, we spent two years completely re-engineering the way we approached business and found we could be profitable through different, more lucrative, deals with more reputable companies.
As for my house, my wife and I aren’t worried. We know it will sell. It’s just a matter of time before the right deal comes along.
Dustin Klein ([email protected]) is editor of SBN.