Limitless Monday: Don’t Get Caught in Minutiae

Limitless Monday – Don’t get caught up in the minutiae

A few years ago when I was starting out in business I spotted an advert in The Financial Times (the pink newspaper). It was advertising a small fund manager for sale. I called them up, met the co-owner in a bar at a train station and agreed a deal. When it came time to close, the other co-owner, who I had yet to meet, decided to add an extra few grand on the price to cover some old electric bills. I pushed back. He stuck firm. “Fuck him!” I told my lawyer. “How much are you going to make from this company over the next five years do you think?” My lawyer Patrick asked me.

“I don’t know, a few million, I suppose,” I told him.

“Then why are you arguing over a few thousand pounds? Pay it and get on with your life.”

Patrick was totally right. I took his advice and went on to make over $20m on that one deal, something that wouldn’t have happened if I had continued being stubborn.

The idea for this article came from a podcast I was listening to. A man was attempting to buy a multi-million dollar home. The transaction was being hampered because the buyer demanded including the lawnmower in the price while the owner insisted that he was taking the contraption with him. Surely it would be easier for the potential new owner to just go out and buy a new one? However in the heat of the moment we can get caught up in the minutiae with the potential for a great deal to collapse over intransigence.

Standing back from the fray is an effective way to recognize you are going down the wrong path and should help you compromise. However there are many among us who refuse to compromise. If you are one of those people, then you may want to cast your mind back at the many missed opportunities littering your past. Your lack of progress in life wasn’t the result of your tough negotiating skills or that the other party was being unreasonable; it’s because you have an inability to close. When you next hear yourself say, “it’s the principal,” clench your fist and punch yourself hard in the face. If you don’t, I will.

In the film Glengarry Glen Ross, one of the most famous takeaways is the act of, “Always Be Closing” or ABC. I have been around so many people in my life who just can’t close. Closing a deal, however, is the least of their problems. Closing on a first or next date, closing on the house of their dreams, a new job or a chance to be part of a particular team are also all probably out of their reach.

This needs to change if you are to fulfill your dreams and ultimately your potential. You are being held back and you don’t even recognize it. You probably think it’s a good thing to negotiate hard on everything and then walk away if you don’t get your own way.

I was negotiating with the owner of an early pioneer in the teeth whitening business a few years back. I offered to invest in his business. I made a fair offer. He wanted, in fact needed, the investment. I began to dig my heels in; there were plenty more good deals. He didn’t budge. We were arguing over 1 or 2 % of his company. I knew it wouldn’t make a significant difference to my eventual profit, so rather than walk away from the deal, which was my initial instinct, I agreed to his figure. A few months later I sold our stake for a massive profit. He would have stood by and watched his business crash and burn for the sake of giving up a few additional percentage points. I was focused on the bigger picture.

That has to be your approach; focus on the bigger picture and then take the approach of: always be closing, ABC.

Happy Monday!

 

Banner Image: Spider’s web. Image Credit – LTapsaH