Investing in Stocks and Bonds is good for your wealth. Investing in Businesses is even better. When it comes to business investing, I try to learn from the best. Phillip Green, the British Billionaire who controls some of the UK’s largest retailers, is undoubtedly one of the best. He offers 10 ground rules for doing business deals. Here they are:
- Assess risk rather than reward: “Don’t worry about the upside; that will take care of itself.”
- Work out your exit before you do anything else: As any business investor will tell you, always have an exit strategy
- Do not over-borrow: “Make sure you feel there is comfort in your financing.”
- Never buy a business based on the price you think you can sell it for: “Buy on the basis that you are prepared to own and run the business yourself.”
- Always stay in the area of business you know: “Stick 100 percent to your knitting.”
- Always meet the opposition on your home ground
- Be a tight timekeeper: “When you are in the middle of a deal, you don’t want to be left sitting around.”
- Sign the deal on the day you agree final details: “Once people have had a sleep, they wake up with a whole load of new ideas and problems.”
- Lead the principal negotiations yourself: “Do not leave two lawyers in a room on their own – they will only have an argument.” Enough said
- Keep a tight team around you.
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