Often times when people talk about using money for a start-up of sorts people would say that it’s better to use someone else’s money. For example, asking for investments where the investors essentially take a huge chunk of the financial risk. I was thinking recently as I saw a situation where somebody wanted a service from another where it would benefit them immensely. However, the provider would take a heavy risk of sort where if something went wrong they could be in the hole as an example.
The thing that stuck out in my mind was how the person didn’t really care as it was essentially all about them and what was best for business you could say. It made me think, if you knew someone was doing that to you would you decline it right away or still evaluate it as if it’s like gambling on a slot machine where you could potentially earn or lose a lot?
I actually use that to evaluate character many times as I think it is important for business. One of the most common stories I hear from successful people who have made it big to then lose it all for whatever reason often find themselves having to do everything all over again by themselves. So it makes me think that it’s important to really understand who you are surrounding yourself with. If people have no concerns of the types of risk that a request would put you through then in many ways it’s best to always make sure that things are equal regardless of say the business relationship that you may already have. Because if one party is thinking purely business then it’s only fair that you do as well. Equal risk and equal gain.