Invest It Wisely

Maximizing your EV in life

How to Win Big Deals

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The following is a guest post by Tim of Every Peso Counts.

Handshake, by Dragon Art. Source: http://www.dragonartz.net/2009/08/05/handshake-vector/

One of the first things I learned when I played Cashflow 101 is how to win big deals. Cashflow 101 is a game invented by Robert Kiyosaki, and it simulates some real life situations that you are likely to encounter. You are bound to make as many mistakes as possible and learn from them.

Going back to the subject of winning big deals, let us first define what a deal is: for me, a deal is an agreement or fact between two parties (either individuals or companies) to make an exchange. The success of a deal depends on how much each party trusts each other.

So, going with my above definition of a deal, it can be successful if you can make another person trust you enough. But how do you build trust? The answer? Consistency.

Consistency Builds Trust

When you’re a business, you can be consistent in the form of what you deliver, following up with the customer, good pricing, good service, etc… but don’t you notice that it’s easier to walk on level ground rather than walking up a slope? Its easier to be consistent, and win when what you’re doing is easier. You cannot be over confident as you might step on a rock, and you’ll fall to the ground. Walk on plain ground, be consistent, but do not underestimate.

However just like how consistency builds trust, inconsistency can also build mistrust. For example, let’s say that the first time you visit a barber, he gives you a very good haircut. The second time you visit, he does the same but the third time, he spends most of his time watching TV instead of focusing on you, the customer. The next few visits he continues to ignore you, as if you don’t matter any more… How would you feel?

It’s useful to point out that winning big deals is the same in employment as in business. I’m sure that during your probationary period you tried to prove yourself to your boss. But after a certain period of time, most employees tend to lose focus and interest in their work because they think they’ve “proven it” already. I’m saying this based on experience, as I was ranting to a friend how I had already proved myself to one of my previous employers and then I got slapped on the face when he told me “hindi lang naman once ang pag-prove” (proving is not only once).

It’s the same with business; you don’t only need to prove yourself once, but you should be proving yourself each and every time. You should convince the customer that your service and your product is of high quality and that they should buy from you. That’s consistency.

This reasoning brings me to my last point.

Win Small Deals First

The bottom line of this post is to tell you that big deals come from smaller deals. I’m not kidding you; history tells us that a lot of successful companies, as well as people, won the big deals by winning small deals first.

To demonstrate this point, imagine a physical therapist (a freelancer) who is just starting up in his career. He gets his first client, and then if that client likes his service, the tendency is for that one client to refer the therapist to one or two more clients, and then these other clients refer to two or more, and so on and so on…

I’m sure you’re getting my point. For most of us, it’s very rare to get a one time big time kind of deal so we just have to consistently prove ourselves.

The small deals prepare you for even more challenging tasks. If you shoot for the big deals first and you’re not ready, that opportunity will pass you by. The small deals will teach you several lessons and will help you build up confidence so you will be ready to go for the bigger deals.

Again, pursue the smaller deals first. Then the bigger deals will come to reveal themselves to you once you are ready.

Tim writes at Every Peso Counts, where he writes about becoming rich with a rich mindset.

[Kevin] I like the point that Tim raises, here, and I also believe that it’s important to remain consistent and trustworthy. I can relate to the feeling of growing complacent once a little bit of success comes our way, and we must keep on guard against that. If you’re seeking trust and a good reputation, then the focus should always be on satisfying the customer, whether that be your boss, business partner, or client. Every little effort pays off, and like a snowball rolling down a hill, it can eventually pay off in a big way. This can be applied to many areas of personal finance, as well as life in general.

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Comments

  1. Kevin, have you tried this cashflow 101 game? It sounds interesting. I didn’t pay too much attention when I read about it in Rich Dad Poor Dad, but maybe it’s worth investigating. OK, I just saw the price on Amazon, 200 bucks! really??

    • I heard about it from the same source, but nope, haven’t tried it. $200? Woah! I would look on eBay or Craigslist or something first for a used version! I guess that’s why I’m just not a fan of Kiyosaki personally, although I do think he brought up some good points in “Rich Dad, Poor Dad”.

      • Hi guys,

        Here in Manila there are companies/groups that sponsor cashflow playing events. I’m not sure if the same setup is available from where you guys are. I agree, $200 is a little off and it’s not much fun playing it alone. Oh, I should’ve mentioned in the post that an online version is available!

        • Hey Tim,

          Glad to hear that there are ways to avoid the high cost! It seems like one could learn some interesting things from playing the game. I wonder if anyone’s made a free knock-off somewhere. 😉

    • There is something enchanting about Rich Dad’s ideas – despite all the talks that he says nothing practical, I am still seduced by the idea that people should really focus on making money and think like entrepreneurs.

      Basically what this post advises is common sense – you should be consistent so that you are recognizable by that trait and you would win people’s trust more easily. I think this is part of branding strategy, too.

      • There are some things I liked about Rich Dad Poor Dad, though I didn’t like how Kiyosaki made it feel like he was “gaming” the system and that anyone could do so as easily as he did, nor the way he makes out working people to be “suckers”. Still, a lot of interesting things to learn!

  2. I like this post. I think a lot of people, including myself from time to time, go thinking they proved it all. Like with friends and lover, if you take them for granted you’ll wake up one day realizing they are all gone. We should try to be our best every day. Of course, there are days when it gets harder, but those are the days when you can prove yourself even more.

  3. This is not just for business! Consistent performance is appreciated in all fields and life. As a teacher, I am rewarded for no absences in a semester, additional paid assignments because I am dependable and responsible, and other benefits.

  4. Kevin, you made a very good point in your endnotes about the dangers of complacency. Growth is great, and to become confident in that growth is all well and good, but only to a certain degree.

  5. Tim mentioned there is an online game – this is true! All you have to do is register – which is free. It is a pretty fun game and it teaches you a lot about passive income through property investments. However, the game doesn’t teach you how to keep you debt low… when I “won” the game, I had a great cashflow, but my debt was nearly half a million dollars!! If any of my investments would have gone south, I would have been declaring bankruptcy.

    • Haha. Well, leverage will increase your returns along with your risk. Surprised that the game would encourage that though cause IIRC Kiyosaki was not so fond of debt… or maybe I’m remembering that part wrong. Good to hear that there’s a way to play without spending a lot of money.

  6. Very nice article! I can say it applies to any situations when you have to deal with people at work or in business. Getting a promotion or a pay raise is like making a deal, as the employer agree that you are worth it.

    I have not tried the game either, I should check it out.
    Cheers!

    • Yeah, when you think about it, this is something you could really apply to all facets of your life. Tim showed us that there are parallels between the different areas — loyalty, honesty, and “proving yourself” will get you far whether it’s business or a personal relationship.

    • One thing I have to give Kiyosaki credit for is for getting people in the mindset of accumulating assets and purging liabilities. It isn’t the way most people think about things, especially re: one’s home!

  8. Interesting post. I think the most important “nugget” is that about consistency builds trust but more importantly how inconsistency builds “mistrust” Often times we don’t realize this – because we simply aren’t doing anything.

    • Right, sometimes we’ll end up learning the hard way from the school of hard knocks. Experience is a good teacher as well.

  9. Thanks for the positive response everyone! I’m glad that I’ve communicated my point quite effectively (I strongly believe with Kevin’s help). And this article could never have had enough attention had I posted it in my blog so I’m glad it served more of its purpose have posted it here at Invest It Wisely. Thanks again!

  10. At first I thought you wrote the article, Kevin 🙂 I was like “whoa! Kevin doesn’t seem like the type to pay $200 for cashflow 101!” Then realized it was a guest post 🙂

    Great post- agree that small steps can add up!

  11. Great post. I think all of us at one time or another have fallen prey to trying to hit a home run each time up to bat. We need to learn to make contact and hit a base hit first.

    • Something that just came to mind is that by being consistent and spending a lot of time at the plate, we are setting ourselves up for success and for more of those home runs down the road. We may end up getting more home runs that way.

  14. Thanks guys! Yes, I love making real-world examples and I would even make myself as a bad example if it need be.

    Every day of my life I remind myself of the lesson I myself taught in this article. I’m as guilty as the next person is from time to time but I hope that somehow this would always serve as a reminder.

    When there’s some changes in your life, try to come back to this post and reflect those changes in what I tried to discuss here, I’m sure you’ll be able to discover other things about yourself.

    • I think it takes some guts to be humble. Our egos are the most fragile things in the world, but we have a lot to gain from introspection and self-analysis. Better to toughen up the ego along the way as well.

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  2. […] How To Win Big Deals – Kevin over at Invest It Wisely shares some useful ideas on how to win the big deal. I believe these ideas can be applied to almost any successful relationship […]