Handshake Deals are Great but Get It On Paper- FAST!
Adam Lilling is a Serial Entrepreneur & Investor (http://www.lilling.com/). In this video he talks about getting a deal on paper.
- Paper deals are more important among friends
- Paper isn't always the final deal
- Paper sets the expectations early on
I've had a lot of types of deals in my life and I love a handshake deal. I love to be able to walkaway from someone saying we've got a deal. But you've gotta get it on paper fast specially with friends.
You think it would be harder with strangers? But with friends, time and expectation are inextricably linked. The longer time goes on, the wider the expectation gap. Oh, I thought that we would do this. I thought it would go this way. Well, you know, things have changed.
For me, getting it on paper is important because even though it may not be the final deal. Even though you may have to negotiate or settle because you don't wanna sue. Getting it on paper at least starts the clock that this is the expectation is from the beginning. And setting expectations is important and a handshake. No one ever keeps that expectation and the longer time goes on, the harder it is to keep people to the original idea or deal that you had.