Earlier, I started a Long Reads category to explore deeply into various topics relating to business. This is the first article of the Nuggets segment where we focus on quality over quantity and fit valuable lessons into a one-minute read.
Whenever you walk into a room for a business meeting, networking event, etc., always try to understand how each person in the room makes money.
Example: A bank is a financial institution that provides services and helps manage people’s money. However, banks actually profit when you deposit your money so they can lend it out for interest.
Bankers also want you to miss your credit repayments to increase the interest rate and earn more from you in fees. Don’t have enough in the bank? They will gladly take an overdraft fee. ($11 Billion came from overdraft fees in 2019.)
“A lion is never going to tell a gazelle how to escape”Unknown
No matter the situation, people operate on incentives. You want to understand what their incentives are so you can make calculated, informed decisions.
Even people who mean good still have an end goal and a reason for doing.
Understanding people’s ulterior motives can allow you to reshape a deal to be mutually beneficial and meet their needs while meeting yours. It can help you convince someone to partner with you. It even allows you to understand the reason behind people’s every action.