Tweet

The Detrimental Business Relationship: Are You Putting Yourself at Risk?

Guest post by: Maribeth Kuzmeski

Article Overview: It is enticing to take on new clients quickly that seem to have everything that you want, especially the willingness and ability to buy. But what if, in your haste to sign on this great new client, you don’t properly assess how this person will act as a client (it goes the same for business partners, alliances, and friends). Have you taken into consideration not only your short-term benefits, but also the long lasting impact this relationship could carry on you and your company?

The Detrimental Business Relationship: Are You Putting Yourself at Risk?

It is enticing to take on new clients quickly that seem to have everything that you want, especially the willingness and ability to buy. But what if, in your haste to sign on this great new client, you don’t properly assess how this person will act as a client (it goes the same for business partners, alliances, and friends). Have you taken into consideration not only your short-term benefits, but also the long lasting impact this relationship could carry on you and your company?

All clients are not created equal. All people are not either. You find out all you need to know about a person, client, business associate or “friend” when a stressful situation causes emotions to take over common sense. The question is - how can you fast track the time it takes to figure these things out so another person’s actions and reactions don’t become detrimental? The answer - the signs are there, you just have to look for them. The person with a big ego is harmless unless that ego is turned against you. The friend who cheats on his taxes is ignored until that person cheats you out of something. And the client who discusses run-ins with other service organizations will likely have one with you too. The signs are there. It pays to take a step back and evaluate whom you associate with before you enter into any agreements or take on new clients. I have seen too much trouble occur to good people who naively thought it would never happen to them.

Related Articles
  Risk Management for Law Firms
  5.1 Fiscal space is critical for diversification: Economic Report on Africa 2007
  Overcoming Stress In 5 Simple Ways
  5 Preventable Pitfalls to Solid Client Relationships and How to Resolve Them
  Get Leads Coming to You and Get Them to Act Now
  MANAGING RISK
  Cost-Cutting Actions Lead to Decline in Morale
  Want To Get Into Google Quick? – Here’s The Wrong Way To Do It
  Risk Assessment & Analysis Techniques
  Rekindle your Relationship with your Home Based Business
  The Energy of Tolerations!
  What a Pole Vaulter Can Teach You About Professional Networking
  If you are going to buy a business, you need to accept business risk.
  Prove it or lose it – strengthening your chances of media coverage
  Start Goal Setting Now
  Should you bother marketing during July and August?
  A Look Into Direct Sales Vs Multi Level Marketing Programs
  The Forgotten Art of Conversation
  LEADERS HAVE BLOOD GROUP OF FIRE POSITIVE.
  The Risk of Heart Disease in Professional Women

Article Tags: business alliances, business partners, business relationships, client relationships, Maribeth Kuzmeski, Red Zone Marketing



Related Forum Posts
How to valuate a business - Hi Garth - here is how we did it at Northern Crown Capital when I was helping them raise venture capital for Toronto-based entrepreneurs. Assume the start date is 2003 so 2008 projections are 5 years out: How Northern Crown Capital Valuates a Business 2008 Financial Projections Earnings Before Tax $5,865,000 Tax Rate 42% Taxes $2,463,300 Net Earnings $3,401,700 Amount Seeking to Raise Today $3,500,000 Discounted Value of Future Opportunity, 5 Years Out 2008 P/E Ratio 15 Value of Company in 2008 $51,025,500 Discount Rate Applied 30% Year 2008 $51,025,500 Year 2007 $35,717,850 Year 2006 $25,002,495 Year 2005 $17,501,747 Year 2004 $12,251,223 Value of Company at Investment in 2003 $12,251,223 Less: Investment Amount $3,500,000 Present Value $8,751,223 Discount for Risk & Private Company 40% Less: Discount for Risk & Private Company $3,500,489 Private Company Value $5,250,734 Present Value (What the Owner Keeps) $5,250,734 60.00% Financing (What the Investor Gets) $3,500,000 40.00% Total $8,750,734 100.00% I hope this helps!
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Selling a Service - What sort of service are you trying to sell? I have a good friend who headed up the marketing for a good number of service companies and showing pictures of before and after (if applicable) is good. Putting together a flyer with a bulleted list (quick and easy to read) of the benefits to the customer and testimonials from satisfied customers are all great ways to help sell your service. Cold calls are horrible and I've done them, but never liked it. Besides, your normal return on cold calls is low. I joined a BNI (Business Networking International) networking group to promote my home improvement business and that worked well. I got to know the members and many used my services. At this point they were able to refer qualified leads to me. Let me know what you're selling and I can try to think of some other ideas. Chris
Show the Benefits - Offer a free test drive of the Product or Service with a Money Back Guarantee - Take the Risk out. This will help them make the decision but you have to work with them to realize it by explicitly state the benefits they are receiving.
Removal of Director paperwork - Hello I have to remove a director from my company, does anyone know where I can find director termination paperwork, and paperwork to terminate officer status in a corporation. Also, I am looking for information on the legality of diluting existing shareholders shares when I have the controlling block. Relationship with business partner went sour. Regards, Peter


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Are You Reaching Out?

Using your social media profiles to drive traffic

Expanding Your Business By Franchising

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.