Updated: Nov 28, 2019
So, you’re an idealist. You think most people are well intentioned, sweater wearing Mr. Rogers doppelgängers. Nice! I love that approach to life with one small caveat; unknown, large financial transactions. When you’re dealing with an unknown large financial transaction, do your best to mitigate or transfer risk. This is project management speak that essentially means don’t be stupid. Don’t use cash! Consider using a credit card instead and pay it back ASAP. Not only will you get free airline miles, you may save yourself from being taken advantage of by carnivorous vendors.
Remember, vendors or contractors that are in financial trouble will likely ask for cash. Cash is harder to recover in a bankruptcy court hearing and can be used to finance a failed business owner weeks after the business goes belly up like my childhood goldfish. Chubs! I’ll miss you forever.
Anyway, if you’re dealing with a vendor that’s asking for a large amount of cash up front and refuses to take a credit card, consider this to be a 4th of July, North Korean nuclear special. Bombs people! Bombs! However, if you insist on ignoring this glaring red flag, at least ensure that the product or service is clearly defined in a statement of work or purchase order. Why? Great question. Either of these documents can be used in court to prove what was promised by the vendor or contractor.
Protect yourself, your family, and your business by being smart and finding ways to mitigate/transfer risk or by calling your friendly neighborhood consultants at Great Family Management Consulting. Let’s take off together