Sometimes you’ll do a deal, only to wake the next morning with that cold feeling in the pit of your stomach: “I shouldn’t have done that deal.”

Maybe its buying a house, or hiring an employee, or investing in a business, or getting engaged to your boyfriend. Whatever.

You close the deal in good faith, but afterwards you realise you’ve made a mistake.

What do you do?

1. Go through with the deal. Maybe you can survive the mistake.
2. Try wriggle out of the deal using fineprint or avoiding the other person.
3. Call the other person and say these words, “I’ve gone cold on the deal”. Nothing else. Don’t rationalize, don’t give excuses, don’t get emotional. The other person may rant and rave, but when there is a pause in the conversation just repeat, “I’ve gone cold on the deal.”

Most entrepreneurs can’t afford to do bad deals, option 1 is not available. Option 2 creates bad faith and messes people around. Its also not an option.

Option 3 is the way to go. Be honest and upfront, early. At least the other person can move on, try do a deal with someone else rather than flog a dead horse.

Sometimes you’ll do bad deals. It happens.

Man up, move on.