I often get calls from organisations offering me opportunities and some have been really great ( that's for another blog on another day ) however many are bogus or not totally truthful in what they say.
Here's how I do my 'do diligence', DD or due diligence (doo dilijens).
Firstly identify which company you are talking with.
Identify - who are they?
1. Have they sent you a web link to look at?
I'm looking to see if this is a bona fide company and not a shell company. I want to find out who the directors are and their skills.
Quantify - how successful
I want to find out how well their company is doing
Thirdly - I want to find out about the product they are offering. I know now who they are and how they've been doing.
Ratify - find approval
This can be the most difficult - because it is also associated with how acceptable this investment is to you / your peers / wife. Your attitude to risk may kick in here, too. What percentage of your premium are you willing to sacrifice in the event of this opportunity failing? How is this mitigated in the offering.
In my next blog post I'll run through the process I go through of identifying and quantifying a business and its directors.
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