DEAL RULES
…THE 38

Rules are meant to be broken.
Except the 38.

So what are the deal rules? The deal rules are lessons learned over the years the hard way. They apply to startups and deals in general. They apply to every facet and stage. They deal with the grey areas…the places where there may be no apparent “right” way to do something. They deal with the times when there is no clear vision or direction. They bring me clarity and hopefully they will do the same for you. Pretty much every day I am feeling or experiencing a deal rule in action. They are real. And they have value because they work. So let’s hit the ground running…

Deal Rules

1) If a person is not key to a deal they can not be involved in the deal

2) Relationships must be defined prior to any work being done

3) Expectations must be defined prior to any work being done

4) Most deals will not see fruition

5) Deals are by nature an emotional roller coaster with many ups and downs along the way. Choose to be emotional or not. Don’t let the emotions choose.

6) Listen to red flags. They are objective.

7) Judge a person quickly by their actions and lack of actions.

8) Don’t waste time giving people multiple opportunities to prove their worth.

9) Good partners originate effort, bad partners and employees are delegated effort

10) Call issues into the light ASAP. By doing this, issues are concluded in the quickest time possible.

11) If a partner proposes doing something illegal even under the guise of being legal, cut them off like a bad disease. Have NO contact with them whatsoever.

12) After making a decision, look forwards not backwards and keep moving.

13) Plan for a specific period and then move forward or not.

14) Execution is the catalyst for everything.

15) If someone says they will do something and then don’t do it, cut them off. They are time killers.

16) Never confuse opportunity with temptation. Temptation never has a positive outcome.

17) When involved in a dispute, weigh the possibilities financially, decide, then move forward quickly. Do not turn back under any condition.

18) Optimists make money, pessimists don’t

19) When 2 people in a business always agree, 1 is unnecessary

20) Money never precedes a good deal. A good deal comes first and then the money. If money comes first, the deals formed as a result are second rate. Good deal first, money second.

21) If a prospective partner makes a decision to not do business with you at an early stage, then wishes to partner with you at a later stage, this is an indication they are a fair-weather player and not partner material. Do not do business with them.

22) Your spouse is the most important partner you will ever have. Choose wisely.

23) Never make a decision when angry

24) If you can’t beat them, persuade them to join you

25) The road is always longer than you think it is

26) A deal will always take 3 times more money than initially thought would be required.

27) Deals are extremely polarizing right at the starting line. This is when potential “partners” expose themselves as being “employees” or truly partners

28) Trust the process.

29) I am enough.

30) Never do a deal that is dependent upon one person’s knowledge base. Only do deals with at least 2 additional “fallback” positions.

31) Never do a deal that involves “research”. Research is a black hole.

32) If you are tethered to another while in the middle of a deal and they decide they preferred the view from the ground, help them achieve this by hanging on to the side of the mountain while quickly cutting the rope. Then proceed to the top of the mountain.

33) Fish heads taste good by day five.

34) Good things happen when you get up at 5:00am

35) Whatever road a company starts out on, it stays on.

36) Business Partners can become friends. Friends can not become business partners.

37) Do the shit you know you should be doing, even when you don’t feel like it.

38) All ideas are good.