Wednesday, February 22, 2012

Due Diligence 101 or Go Learn, Darn it.

I have been approached by several companies looking for investment, over the last couple of months. It is always surprising to me when I realize that the leaders, owners, partners of a company haven't read anything about all those little details that might allow them to succeed. I was browsing the "Small Business" section of the Huffington Post and found this article about investor due diligence. Here is another article from the same page about employee turnover.

After running a Google search for "attracting angel investors." Here are the first two links, 1 and 2. Seems like reasonable ideas to me. If I was trying to get an Angel deal, I would read the first 20 articles and see how they compare.

I spent years reading Business Week, Inc Magazine, Wired, the local paper and everything else I could think of. My standard metric was to spend 1 hour each day studying about business. There were so many times that I dipped into my pool of accumulated knowledge, those long hours of study drove my success. Imagine, reading up on what you don't know, but have to know to succeed? Crazy.

In answer to the little companies looking for my money, you should realize, I'm going to ask all the questions in those due diligence articles, sooner or later. Go read up, what you need to do is in those links. Hopefully, the easy part is spelled out in free text, the hard part is doing it. To everyone else, if you read about your work, you will do better.

Of course, your comments are welcome.

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