Never smile at a crocodile
by Karen Southall WattsLink to article
How do you evaluate a new opportunity that comes your way? Is there a way to quickly tell an opportunity from a sinking energy pit or a scam? We all make mistakes and there’s no assurance that a good idea will turn into success. But careful consideration of new opportunities and partnerships can save you from a lot of heartache.
Ask yourself, “Will this opportunity get a monkey off my back?” Even when they aren’t exciting opportunities that lower your overhead, increase your cash flow and remove chronic problems should always be considered. Concentrate on cutting the expenses in the big cash devouring segments of your life or business. A new job or project that pays well ought to be scrutinized no matter how boring.
Where is the evidence? Gut feeling may be the staple in an entrepreneur’s diet but it is not enough to keep anyone well fed. Before you start a new job or open a new enterprise you must do your homework. What’s the cost of living in the new town with the job offer? Who is the target market for the new business venture? Who are your competitors? (If you are a job candidate or entrepreneur who feels you have “no competition”—you are wrong.)
What is the cost and risk involved? And what is waiting at the end of the rainbow—the pay off? The best way to assess costs, risks and potential results is to ask yourself a series of questions. It can be extremely helpful to use a coach, mentor or friend to aid you in this process. This second person helps to keep you honest and grounded in your answers. Here are a few questions to get you started (this list is not exhaustive):
1. How much cash do I need up front to do this?
2. What is the daily, weekly, monthly investment of my time?
3. Is this going to interfere with my family time, day job or other business?
4. Who is making the offer? (see below)
5. How long before I see a return on my investment?
6. What do I have to give up in order to pursue this opportunity?
Finally, always consider the source. As the Disney song says: “Never smile at a crocodile…don’t be taken in by his welcome grin. He’s imagining how well you’d fit within his skin.” The two biggest crocodiles in business are the unethical and the incompetent. Steer clear of projects and work with those you know to have a reputation for shoddy, sloppy or sleazy business practices. It’s highly unlikely they have magically developed a conscience or exemplary skills five minutes before approaching you. Also be wary of instant gurus and people who are just clueless. Case in point: I know a “marketing expert” who was begging others for help with simple marketing just a few short months ago. There’s a difference between expertise and audacity—both useful in business—but you need to be able to tell them apart.