***Walk-Away Willpower

We often read and hear a lot about the importance of “sticking with it” and “never quitting,” but sometimes, deciding not to proceed can be just as valuable as going further. As Donald Trump put it in The Trump Way to Wealth (https://www.trumpuniversity.com/start/wealthcreation/twtw.cfm), “I'm not a believer in quitting, but every once in a while you have to be able to leave something.” Simply stated, passing on bad deals frees you up to pursue better ones - maybe a lot better. In negotiation, there’s a concept called walk-away willpower. It refers to the ability to essentially stop negotiating and exit a transaction. Willpower is the operative word here, because to decide to walk away from a deal or project that you have already invested a lot of time into can be difficult, and can require a certain amount of personal discipline and strength. The Principle of Invested TimennIn his book Trump Strategies for Real Estate (http://www.trumpuniversity.com/shop/merchandise.cfm?id=80 ), George Ross writes about the invested time principle in negotiation, which he explains as “the more time a person has invested in a transaction, the less likelihood he or she’s going to give it up... they’ll do everything they can to salvage the transaction.” Nobody likes to waste time, especially in business. And the more time, energy, and/or money you put into a deal or venture, the harder it does become for you to just walk away from it. But sometimes you need to. Whether you’re involved in real estate or another entrepreneurial endeavor, you’re always working towards a set of major objectives. Sure, things don’t always run as smoothly as we would want them to, and sometimes you’ll need to make concessions (or “sweeten the deal”) in order to make it work. But what do you do when you find that you’ve compromised so much that your big picture objectives are no longer in sight? The ultimate goal of any deal or venture is to feel satisfied and better off than before you started working on it. But what do you do if you don’t see that as a realistic possibility anymore? Don’t waste your time - it’s more valuable than money. If you don’t see the benefits of the deal anymore, have the willpower to walk away from it. So how do you know when to walk away? Here are some questions to ask yourself when you notice things changing drastically:

• Does the deal still make sense to you? Before you even start a new deal or venture, figure out what you want to achieve. This will help you stay focused throughout the process, so when things take a turn for the worse, you’ll be able to acknowledge the reality of the situation and act accordingly. You’ll be a lot better off admitting that a once strong deal has become weak it is better to walk away than see it all the way through and be stuck with a lemon.
• Do your alternatives look a lot more attractive? To do business from a position of strength, you always need to have various potential deals or paths you can take. If you keep the old saying “there are plenty of fish in the sea” in mind, then you’ll ensure that you won’t kill yourself trying to catch one of those fish.
• Has the atmosphere changed from cooperative to hostile? People engage in business with people who they trust and have a rapport with. Do your best to distinguish between the deal-makers you trust and the deal-breakers that drive you crazy.

nIf your answer is yes to all of the above, then it might time be to stop making concessions and start pursuing a new deal or venture. After all, you don’t want to sweeten a deal to the point that it gives you a financial cavity. Knowing when to walk away from a deal or investment can mean the difference between saving a lot and losing a lot. Walk-away willpower requires discipline and strong grasp of your objectives. This is especially true when you’re just starting out. Junior entrepreneurs often say to themselves, “I’ll bank on this deal just to get my foot in the door, and then when I’m more established, I’ll be able to be more selective.” This is a bad attitude. Every deal is a reputation-builder - even the early ones. Do you want to be known as easy prey or a formidable peer? The decision is yours.