Dump your losers, walk away from bad deals
The more risk you take the more chance of making a bad deal. Bad deals come in all forms, from financial to personal. How you handle a bad deal depends on you. So I’ve had a number of bad deals like losing millions of dollars in real estate, overpaying for products, and getting into businesses I should have stayed away from. Selling when I should have held and held when I should have sold. Wrong friends, wrong spouse, wrong business, and wrong investment, and the list goes on. So how you handle failure or bad deals determines how you move forward.
A few years ago I bought a container of product which I thought was a good deal. I based my purchase on prior purchases which I concluded was the same, it wasn’t. So after almost a year of storage fees and not many sales, I dumped the container for a loss of 10,000 dollars. Not a huge amount but any loss based on bad judgment hurts and this one was no different. I could have exited the position earlier saving me thousands of dollars, but like most people, I didn’t want to admit my mistake. Therefore failure to admit what clearly was a bad deal always ends up costing you. Because the longer you allow your ego to hold on, the more you lose.
Another crushing loss came in the form of 6.2 million in Las Vegas real estate. Personal issues forced me to sell earlier than I wanted so I exited my portion. 16 months later my 6.2 million doubled to more than 12 million. Therefore I had a cost of 4 million, I lost about 7 million after broker fees. So if I had hung in there a little more, the profits would have been banked.
How did I survive these bad deals?
Here is my top 10 list of how to get out of a bad deal you created.
- Take responsibility and admit you’re in a bad deal. You did it to yourself.
- Get out of your bad deal today; it never gets better only worse.
- Losses pile up fast so take the loss today and move on.
- Once out, forget the deal and learn what not to do in the future.
- Don’t listen to anyone. Most advice is wrong advice. Listen to yourself.
- Never dwell on past experiences that didn’t work, it only stops you from moving forward.
- Play conservatively for a while. Take smaller risk deals until you rebuild your confidence
- Once your confidence is back, then increase your risk
- There is always a better deal to replace your bad deal. Always bigger and better and less headache. Learn and change. Don’t repeat your failures and think positive
- The more you risk the more you stand to lose, be aware of what you’re getting into, and how much it will cost if you’re wrong.
Bad deals come with a cost. So there is no reason to pile up more losses in an effort to salvage a deal gone sour, personal or financial. The worst thing you can do is fight a battle already lost. Never put your ego in front of good judgment. People fight to be right and end up paying endless legal fees for what? Therefore I’ve been in numerous legal battles and I can tell you from experience there are no winners when it comes to fighting it out in court, and that includes personal as well as business.
Remember bad deals never get better only worse. The last thing you want is to build a business and see it end because you allowed your ego to fight against a hopeless cause.
This also applies to relationships that are never going to work. The day you realize that any relationship you’re in, business or personal, is not meant to be, that’s the day you walk away. It’s the best decision you’ll ever make because no matter how good we are, we can’t be right 100 percent of the time.
Being wrong and not admitting your error in judgment only costs you more in the long run. People just can’t admit they were wrong.
You can always start over. Dump your losers, and walk away from bad deals. Take responsibility which is the only true motivator. Stop blaming others. It’s time to move on and grow. It’s always a new day.