Friday, June 13, 2008

Deal or not deal

Something BIG happened this week,

I wish to take this opportunity to share it with all and a lesson to be learned for myself too.

What happened??

For the first time in my life I had to make a decision worth a million dollars, and it wasn't dealing through company’s resources but my own hard earned money.

These are what happened.
Friday:

Met up with business broker and my current financial discussed. Met up with the dealer later on to offer my proposition to him, I have signed my proposition contract. Once he signed it, it’s a done deal.


Saturday:

Eager to know if my proposition has gone through. Called the dealer at 5pm, and status asked, his response expressed that he wanted additional 1.3% of the deal and he will signed off immediately. I didn’t responded back. Being na├»ve, first timer and a stingy bastard, I thought to myself 1.3% equates to more than 15k, and I could buy myself a nice plasma, a holiday and etc. I’ve decided to test out the market hoping it’s a done deal with saving of 1.3%, so I played it cool, and not called back on Sunday and Monday.

Tuesday Morning:

Called him back and asked for an update of the contract. Was told that there were additional 2 bidders for the deal (f**k knows if he’s telling the truth, he might be lying) in a fear sense of losing the deal, I've offered additional 1.3%, but heard nothing back from him.


Tuesday Night:

Called him again, was told that he was considering the deal. Threatened him with legal action due to the fact that promise was made on Saturday with additional 1.3% offered, he would signed off the deal immediately. On his defence, he said the offer only lasted for that day, and I was too late. (he didn’t even give me a time limit for consideration).


Wednesday:
Got a call from him, the answer was NO DEAL, it was sold to the other person with a little bit higher than mine.


I was devastated when I heard the news!!



These are what I’ve learnt over the incident.
1. If high potential business growth is spotted, willing to allow plus or minus 2-3% (can go up to 5% if you are 100% sure it will grow).

2. Don’t ever test out the market, as there’s always richer person willing to outbid your deal.


3. Make quick decision and seal the deal immediately within your financial capability.


4. Yes 2-3% out of a million or a billion is a lot of money, but it’s definitely not worth losing the whole deal.


5. Don’t trust anyone but yourself, if the business is worth it, just do it.

To think back of the whole incident, I figured, I could have offered them additional 2% out of the million to gain the business, but due to my lack of experience to try the market and my stinginess to try to save 1%, I have lost the whole deal which I greatly regretted.


And that’s not the end of the story.

After I’ve known the deal was off, out of my defeated emptiness spirit, and egoistic character, I went searching for another deal.

I found one slightly cheaper but a lot of unknown risk which I am unfamiliar with.


I presented the offer in front of the dealer, he signed it straight away and I had 48 hours to overturn everything if I wanted to.


Thursday:
Making calculations, doing my deal or no deal process.

Friday:
Today is Friday, and I have called the deal off. It is just not the right decision, so many unknown risk involved and thus the decision to give it up.

While some people might think I have a lot of cash to play with, but, the reality is I don't!

I had to borrow most of them from the bank.

Even now I am still recovering from the pain from not getting the first deal! Although I had the second deal, but it just wasn't as sweet as the first one.

It has been a hell of a week, I do need a few days to recover from it.
Fear Not, I will stand up to go on once more again.

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