Want to be deal-maker? Build relationships.
What a year! In honor of the end of 2020, I’m offering up a solo-cast that leads back to the most basic truth about deals: deal-making is about relationships. As I share often, almost every business deal is either the start of a relationship, or the continuation of an existing relationship. There’s just no way around it, and it’s a key part of how I teach about the deal-making process.
Relationships are a Key Deal-Making Ingredient
Whether you’re in an acquisition or merger, or you’re creating deals with partners, vendors, or suppliers, relationships are a key element.
You name the deal, there’s likely going to be a relationship being established, built, or leveraged.
The journey towards a deal is usually paved by relationships as well. Your broker, your agent, your banker, your partner, your friend — these are the relationships that position us to know who we need to know, get people to the deal-making table, and start the deal-making process.
That’s what makes relationships such an important part of both business and deals, not to mention our day-to-day lives!
2020 Highlighted How Essential Relationships Are
In 2020, relationships played a key role in my life for even more reasons than usual.
The support, guidance, connection, and opportunities that came from relationships during this hard, long year were key for me. Not just for growth, but for peace, strength, and stability. Now, more than ever, I know that connection with others fuels me, fuels my personal growth, and fuels my business.
I know that many of you have had to make major pivots this year, and I’ve seen again and again how relationships can truly pave the way to make those successful.
Even as things have been hard, relationships with family, friends, and industry professionals often provided a key element that allowed us to turn things around, make the best of the options available to us, or otherwise find a way to navigate this year.
If you’ve been part of my relationship network this year as a client, a friend, a podcast listener or guest, a DealDen member, or otherwise: thank you. I truly appreciate you, and I hope to continue together with you into the new year!
Know, Like, Trust: Business Relationships Pave the Way for Deals
People want to do business with people they like. It’s just the truth!
When it comes to deal-making, nothing much changes. When you’ve built that know, like, trust factor via real relationships, you’ll find opportunities seem to naturally appear. Why? Because when someone is thinking about who to offer a partnership to, who to strategize with, who to make a deal with, they feel best if they’re doing it with someone they know, like, and trust.
The best time to plant a tree was twenty years ago. The second best time is now.
Being in a relationship with someone builds confidence.
Worried that you’re not well positioned when it comes to relationships? Well, there is no magic pill that will develop them overnight! In fact, it can take a long time to build relationships. As the old Chinese proverb says, however:
Another note: Just because deals are technically transactions doesn’t mean that your relationships should be described that way!
People sense when you’re only interested in them because you want or need something. If you only set about to build relationships because you’re trying to get something, it won’t work the way you hope.
Instead, practice nurturing your current network. Add value. Seek to serve. Find a way to genuinely support someone else. Connect with people you’ve possibly just “not seen” in the past. If 2020 taught you anything, let it be that relationships matter and are always worth investing in.
Listen in to hear my full thoughts on the connection between deal-making and relationships!
Originally published at https://www.coreykupfer.com on December 31, 2020.