Talk Money

Talk Money

People tend to be uncomfortable talking about money, or they may become offended by those who are money-centric. But guess what? Business is about money. So if you aren’t talking about money, then you are being negligent. In fact, for clarity and good financial sense, just about every business conversation you have should be framed within the context of “money” or “making money.”

You should be talking about whether or not your ideas are profitable or if they fit in with your strategy which was designed for maximum cash flow. Or you could talk about whether something is fairly priced or if it can be negotiated downward. Also, your talk could focus on whether an opportunity is a method of saving money by building evolutionary efficiencies into your business processes. Finally, you must wonder if the opportunity cost is too high for any particular business deal, and therefore, predictive of a loss of investment value.

In your personal life, you might not want to talk about money; in business, all you should be talking about is money. Possibly, you may want to be politically correct and explain to people why it is “all you care about.”

Some examples of “money talk” may include: “It is my fiduciary duty to my shareholders”; “It is the reason why I am here”; “It is the reason the business was formed”; “It is how all of our families get fed”; “It is how I am going to retire”; and “It is how I will be able to do charitable works to help others.”

These are among the many great excuses to be talking about money during business hours.

When your attorney and broker calls you, make sure you are talking about money, too, including whether or not they are earning their fees.

People who you have to “shake down” may get upset. At least they will know where you are coming from every time you speak. If you leave your intentions vague, your results might be correspondingly vague.

The only exception is when you have to be discreet during certain business negotiations with the party on the other side of the table; in which case, you should keep the math close to your vest.

For example, if you have ideas and predictions for a part of your industry that your competitors might have somehow missed, you would not want to disclose this information, leading them to believe their own company has additional value, or directing them towards that opportunity.

In courting rituals relating to mergers and acquisitions, company buyers speak a lot about synergy, relationships, products, future, culture, and the like. We recommend you re-focus the conversation and talk about the math instead.

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