9/04/2010

WHEN A HANDSHAK ISN'T GOOD ENOUGH

Agreements prevent disagreements.  If you are a regular reader of this column, you have likely heard this before.  It's one of my core beliefs, yet it's amazing how many people don't heed this advice.

I recently received an email from one of my regular readers in Louisville, Kentucky.  He wrote:  "I have seen it happen so often, especially in real estate.  Both the seller and buyer agree on a price, terms, conditions and usually it will be a simple smooth closing ...  I have seen many deals that were lost where the attorney or the client start playing games of demanding things that weren't in the contract (after everyone agreed) or they say they will 'walk.'  As you know, this happens in almost every business, if not by the boss, then a manager or employee.  Most of the time it is NOT the money that motivates this action -- it is the excitement of 'Winning Always,' to outsmart others, to get the upper hand.  These people are never satisfied with a simple win/win."

While this statement may resonate with a lot of people, the bottom line is once you have a deal, you can't change the rules in the middle of the game -- unless the rules themselves were unethical.  And shame on you if you originally agreed to shady terms.

Every now and then you will find yourself dealing with one of those slick types who says he doesn't want a contract and "your word is good enough."  Maybe yours is, but his usually isn't.

I've learned a few lessons the hard way.  In my early business days, I had a handshake-deal with a man I hired.  He agreed that he would not seek other employment for two years.  After a year, what he thought was a better offer came along, and he was gone.  He said that he remembered that we had agreed on only one year.  How could I prove he was wrong?  I couldn't.

I always strive to come to an agreement and then put it in writing.  Now when I make a deal with anyone, I send a letter the same day in which I:
  • Thank the person profusely for their courtesy, and
  • Spell out the terms of our agreement -- "As I understand our agreement, I have agreed to do this ... and you have agreed to do that ..."


This minimizes any confusion.  I don't usually ask for any acknowledgement other than to make sure they received the letter.  It's just a nice, friendly, little reminder ... and a useful record if there should be any misunderstandings later.  You'd be amazed at how helpful this little exercise is.  Pale ink is better than the most retentive memory.  

One more piece of advice:  If the terms are important enough, make sure your agreement has some legal standing.  Sometimes disagreements can't be settled amicably or easily, even with a written document.  A good lawyer will make sure you are protected.   

In a litigation-happy society, clear agreements often prevent small disagreements from becoming big ones.  Unless you have time and money for an extended lawsuit, take the time up front to spell out the details.  Your lawyer can anticipate scenarios that perhaps you haven't considered.  

One last word of caution:  Always make sure you know whom you are doing business with.  You can save yourself plenty of headaches by using your head from the outset.

Several men are in a golf club locker room when a cell phone rings.  A man answers the phone.  "Yes, I'm finished with my game so I can talk.  You're out shopping?  And you want to order those new carpets?  Okay ... and they'll include the curtains for an extra five thousand?  Sure, why not?"

The golf buddies start to laugh.

"You want to book that week-long cruise?  They'll hold the price at twelve thousand?  Sounds good to me.  How about two weeks?  If that's what you want, okay by me."

The buddies start to wonder where he's been hiding the money.

He continues:  "And you want to give the builder the go-ahead for the house addition?  Seventy-five thousand if we say yes today?  Sounds fair -- sure, that's fine."

Glances of amazement all around.

"Okay, see you later.  Yes, love you too," says the man, ending the call.

He looks at the other men and says, "Whose phone is this anyhow?"

Mackay's Moral:  A solid agreement keeps a meeting of the minds from becoming a clash of wills.

1/14/2010

CHANGE YOUR THOUGHTS AND CHANGE YOUR LIFE

Harvey Mackay's Column 


Change your thoughts and change your life
If what you see is what you get, what will you get?
That all depends on what you see.


A man pulled into a small restaurant on the outskirts of town. He remarked to his server: "I just was transferred to your town, and I've never been to this part of the country. What are people like here?"
"What are people like where you come from?" asked the server.
"Not so nice," the man replied. "In fact, they can be quite rude."
The server shook her head and said, "Well, I'm afraid you'll find the people in this town to be the same way."
A second gentleman came in and sat at a nearby table. He called out to the server. "I'm just moving to your area. Is it nice here?"
"Was it nice where you came from?" inquired the server.
"Oh, yes! I came from a great place. The people were friendly, and I hated to leave."
"Well, you'll find the same to be true of this town."
At hearing this, the first customer was irritated and asked his server, "So tell me, what is this town really like?"
She just shrugged her shoulders and said, "It's all a matter of perception. You'll find things to be just the way you think they are."


Is your glass half-full or half-empty? What do you see? Do you love your job even though there are a few things that bug you? Or do you let the little annoyances drive you crazy and complain to your co-workers non-stop?


As radio commentator Paul Harvey said: "I have never seen a monument erected to a pessimist."
A pessimist is one who makes difficulties out of opportunities. I've rarely seen a successful pessimist. You need to be able to look on the bright side of tough situations in order to take risks, and survive both successes and failures. The sooner you accept the fact that you will have both successes and failures, the easier it will be to get your business and personal life headed in the right direction.


An optimist, on the other hand, understands that life can be a bumpy road, but at least it is leading somewhere. They learn from mistakes and failures, and are not afraid to fail again. They know that as long as you get up after you're knocked down, you are not defeated.
The annals of business are full of very successful people who have gone bankrupt, lost companies, faced public humiliation and still came out on top. The only difference was their attitude: They believed in themselves and the others around them. Hard work, discipline and occasionally a little bit of luck kept them going. There's no reason it can't work for all of us too.


In his book, How to Stop Worrying and Start Living, which I highly recommend, Dale Carnegie tells the story of a young man who worried himself into a nervous breakdown. He worried about everything: his weight, his hair, money, being a father, losing the girl he wanted to marry and what others thought about him. He worried that he had ulcers.
Eventually, his worry made it impossible for him to work. Something had to give, and that was when he had his breakdown.
The young man avoided everyone and cried a lot. He decided to go to Florida to see if a change in scenery would help him. When he got on the train, his father handed him a letter and told him not to open it until he reached his destination. He was even more miserable in Florida than he had been at home.
Finally, he opened the letter from his father: "Son, you are 1,500 miles from home, and you don't feel any different, do you? I knew you wouldn't because you took with you the one thing that is the cause of all your trouble, that is, yourself. There is nothing wrong with either your body or your mind. It is not the situations you have met that have thrown you; it is what you think of these situations. 'As a man thinketh in his heart, so he is.' When you realize that son, come home, for you will be cured."
After some reflection he realized his father was right. It was not the world that needed to change; it was merely the lens of his mind that needed adjustment.


Mackay's Moral: If seeing is believing, start seeing the bright side.