So, How Do You Do "Due Diligence" Anyway?

If you move in entrepreneurial circles like I do, you're sure to hear two words over and over again: "due diligence."

These words refer to the process of scrutiny and analysis you're supposed to go through before you invest in any business opportunity.

Sadly, however, the words themselves are far more known and used than the actual vetting process itself. People talk about "due diligence," but fail to do it. That is, I think, because they just don't know what to do. Let's change that right now.

Here are 9 steps you can use the next time you're thinking of joining any business opportunity of any kind.

1) What will the company actually share with you? "Due diligence" is professional analysis. But it can't work until you have meaningful intelligence to review. Just what does this company provide? Be careful when you consider this point because "more" doesn't mean "better." What you want to know is how long they've been in business, details about its leadership (are its executives known and respected?), the value of its products, its competition and place in the market, etc.

2) How easy is it to get this useful information? Where are these data? How easily can you access them? How clear is the presentation? If you have to jump through endless hoops getting the details you need BEFORE you enter the company, imagine how difficult it will be AFTER!

3) Can you talk to a LIVE person? Lots of so-called "opportunities" make no effort to understand why people like you and me need to talk to real people before plunking down our hard-earned cash. People, in short, like their questions answered and concerns dealt with by other people, not just by posted messages. Is a real person available to you, and just how difficult it is to reach this person?

4) Are they a Better Business Bureau member? The BBB is a well-known organization that's in business to make sure both consumers and businesses get timelyhelp. All businesses get complaints. The question is how the company deals with them. A business' file and overall record at the BBB can be very helpful in your research. And if the company you're researching isn't a member? Caveat emptor.

5) Do you understand how money is made in this opportunity? Every business hires good copywriters like me who are skilled at exciting prospects. We can do it in our sleep. That's why you need to get past the motivating language and see what you actually have to do to make money. Until you are clear on that, you shouldn't join ANY opportunity, no matter how wonderful it seems.

6) Do you have the skills, desire, aptitude and experience to follow the steps which are necessary to succeed in the opportunity you're reviewing? This is closely related to Point 5 above. Don't assume --whatever the company says -- that anyone can make money in the opportunity, that you don't need any particular skills, and that even a child can profit. Be candid with yourself before so that you don't lament after.

7) Will anyone help you succeed? The sad fact is,the average opportunity offers no help beyond a few printed guidelines. That isn't help; it's lack of help! Be direct with the company's representative you're talking to (you are talking to someone, I trust) about how you get help, the level, frequency, means of getting it, etc. Everyone needs help; be clear on how you get it and necessary training from the folks you are considering joining (and paying).

8) Does what the company say make good sense? My father used to say there is nothing less common than common sense. Here, however, is where you need it. When you look past the hype and marketing promises (and remember, high-priced marketers like me are experts in dishing it out), does what the company say ring true... or are they just making one "pie-in-the-sky" promise after another? You need to be cautious, conservative and thoughtful here to avoid crying in your beer later.

9) Do a search on your company of interest in Google or other large search engine. Look for what others have had to say, be be prepared for the fact that you will read good and bad about just every company and often there is only one side to the posts or the information is dated or biased for the interestd of the poster. The anonymity of online posting means that anyone with a beef can post something that could be 100% false and you will never know. Companies that have been around a long time will have complaints it is a part of doing business. It is how they attempt to resolve issues that matters, so read online postings with a grain of salt considering the source and the amount of time the company has been around. Look for reliable information from a trusted source like the Better Business Bureau. Large long standing companies, for example Microsoft, Amway, and American Airlines may have a lot of complaints but they are still trusted companies with excellent products and services who do make an effort to resolve customer issues. Use good judgement when relying on online information.

Conclusion

Lots of folks give nothing more than lip service to due diligence. Yes, it's necessary, but who has time in these busy days? The truth is, the amount of time and effort you expend on your due diligence is a direct reflection on how serious you are about business success and any individual opportunity in particular. In short, it's essential.

Last piece of advice: print out this website and file itaway. It could be well a lot of money and piece of mind in all your future endeavors!

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Harvard-educated Dr. Jeffrey Lant is one of the best-known marketers on earth. Dr. Lant's free online webcasts draw people worldwide who want to profit on the Internet every day. If that's your objective, go to www.worldprofitassociates.com and attend today's program as Dr. Lant's guest. For his personal website, go to www.jeffreylant.com