6 warning signs of a bad business deal

Recognize potential red flags.

The success of your small business depends on making smart deals that expand available resources and enable continued growth. Just as important are the deals you walk away from — thus avoiding costly mistakes that waste time, consume energy, and threaten to derail your success.

Here are six tips for recognizing potential red flags the next time you enter into negotiations with a vendor, contractor, or other service provider.

Note:  These tips are applicable to homeowners also when buying a car, or hiring a remodeling contractor, etc.  Even though it’s a pain, always read the contract, front and back, before committing to anything.

1. Allowing suppliers to name their price

2. Not understanding technical details of a contract

3. Experiencing discomfort with a vendor’s unreasonable demands

4. Suspecting a discount is too good to be true

5. Agreeing to a contract with “iffy” provisions

6. Going into negotiations unprepared

This article originally appeared on the Quickbooks Resource Center and was syndicated by MediaFeed.org.