Many entrepreneurs are so dreamy-eyed about their own products that the idea of some “successful” company has “discovered” them and their products make them emotional and irrational. Like any parent, every entrepreneur loves their own product. It is their baby and it is beautiful (in their eyes). They love their baby so much, they can never believe that their baby might actually be ugly. It would be heresy to say so. They only want to hear how beautiful and wonderful their baby is and show it off what high-quality baby essentials that they use to the world.
With those euphoric feelings, objectivity and business sense tends to go out the window. Just because you are an entrepreneur with what you think is a great product does not make it so. And even if you do have a wonderful product, things have to make financial and business sense. Also, no matter what vendor you hire, there is always a competitor that you can and should compare to. Don’t automatically do business with the first company that meets you.
Would you automatically say YES to the first person who asked you out on a date or the first person who proposed marriage? Unless you are desperate or don’t know any darn better, the correct answer would be NO!
When dealing with any vendor. Get testimonials and references. Get specifics. Have an experienced attorney read contracts. Ask for specific deadlines and milestones and put it in the contract. Have an easy out clause that everyone can live by just in case things don’t work out. In any marriage or partnership, there should be an easy way out or it will be a messy, expensive, and unpleasant divorce. Document your interactions and conversations. Keep a paper trail. Deal with a local company if you can. Why deal with someone far away if the talent is nearby?
Don’t let someone make you fall in love with them just because they tell you your baby is beautiful. You already know that but your baby might not really be that cute. It might even be ugly! Make someone ask why they think it is beautiful. How will they make your baby grow and sell?
Remember, talk is cheap. Actions mean more. Current and up-to-date testimonials and references is a requirement. Anyone will take your money if you are willing to give it.
Newer Entrepreneurs Often Lack Good Business Sense
I have found that newer and smaller entrepreneurs lack good business sense. They know how to create and sell their product. They are product and subject matter experts. But when they enter business dealings, I have found how shockingly naive these entrepreneurs are. They lack business acumen and business sense. Their passions blind them to the realities of life. And they often don’t learn this until it is too late.
They are ignorant to the fine print of how contracts and agreements work. Read the fine print! If you don’t understand, have someone else help you read it. Don’t be rushed. Opportunities are abundant in life. Don’t be another naive entrepreneur to find out the hard way how the legal system works and DOESN’T work.
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