A due diligence exercise should be done on any venture you undertake in life. Whether you start a business, loan a friend money, buy a unit trust, or buy into an existing business there is a risk that it could turn sour and you could lose money. Before investing in any venture, relationship or opportunity you must do a risk assessment and decide if it is worth the risk in the amount of time and energy you need to spend on the venture or person or if it is worth the financial risk.
Establish the market need
Talk to others, do some market research. Ask questions. Take a peak on social media, see if people are talking about. See if it is a product or service people would use. Read the reviews. I recently signed up for an internet service I should’ve not signed up to. I should’ve read what other people were saying about the internet carrier. If I had I would’ve had second thoughts and now I’m sitting with a shitty internet service provider who delivers very poor customer services. You wait on average 20 minutes before they answer your call and it is almost impossible to communicate with them. Now I am making it standard practice not just to do my due diligence on opportunities only but to also do it on any service or product I’m looking to purchase.
Speak to employees and team members to give you an idea of what you are getting yourself into. Who are they and how do they respond. They will also give you ideas and information that may be useful when it comes to sales, marketing and building your business.
- Is there a need for this type of product?
- What do people think of the product or service?
- What are the concerns about the product or service?
- Is there resistance in yourself or your potential customers?
Are you listening to naysayers or looking at something objectively?
I recently observed a company be slammed by media as a business not to be trusted because they were not registered with the financial services board. However, when I read various news articles and watched the news I noticed that most if not all those journalists had no idea what the company was about. They had an idea but hardly took the time to do proper research. This company was falsely accused of not being registered with the FSP but the company is not a financial service provider so how can it register as one?
- Who is it that is telling me it is a scam?
- What does their lifestyle/financial situation look like?
- Am I listening to my gut or what I’ve been told by others?
- Is my mind telling me this based on past experiences or on my current findings.
- Can the person telling me it is a scam explain to me in detail why they see it as a scam?
- Have I really done my homework to understand the opportunity or am I just going by what someone else is saying.
Mind over Matter #MOM
What are the thoughts running through your mind? What are the feelings you are having right now?
If you are serious about wanting a different outcome for your life or sick and tired of your current circumstances then it’s time to stop looking at past experiences and start looking forward to creating a new vision of your future. You need to also stop listening to those around you who complain about life in general and those who have no money and to your own demons, the ones that play like a stuck record in your head reminding you of past bad experiences.
What you think and feel will be your most likely outcome. When I bought into some businesses many years ago, in particular MLM they didn’t work for me but yet they worked for other people. It didn’t work for me is because, I hated selling and I didn’t like having to spend money to buy products every month and felt uncomfortable asking others to do the same by joining my team. There were many other reasons like not choosing the right leaders to work with, my upline was useless and his/her only interest was to sign me up. No matter how hard I tried if I didn’t believe in it I was not going to make it a success.
If you are thinking and feeling thoughts of “I’m not good enough” “I have no money” “I can’t afford it” If you are not guarding your mind and being mindful of what thoughts you are giving energy to then you cannot expect any other outcome. You cannot experience health if you are feeling sick. You cannot experience wealth if you are feeling lack. They are 2 different frequencies. Like a radio station, you cannot dial into 2 radio stations at the same time on one radio. You are responsible for your mind and the thoughts you keep.
Taking risks is about assessing the danger
Someone once said to me, “If one has to pay money to make money it’s normally a scam” so if you buy into a business, is that a scam? In order to create wealth you have to take risks and it normally means buying into something whether it be a business you are buying into or shares you are purchasing. However, you minimise the risk by conducting a due diligence and doing a risk assessment. Research the product, ask questions, watch presentations, get informed.
- Getting to know who is behind the business. The people in the business.
- Research the history of the business by doing some online research and speaking to people in the business.
- Evaluate what the business offers and decide whether it is something you and others would buy.
- Be objective in your findings and don’t make your decision just on one article or speaking to one person.
Can I afford to lose this?
People with money often take risks and often lose money but they also make money and can score big. Whether you start a business, loan a friend money, buy a unit trust, or buy into an existing business there is a risk that you could lose your money.
Ask yourself can I afford to lose this money should it not work out? If you can answer yes to that question and for some reason the opportunity doesn’t perform then be accountable and take responsibility and say to yourself, “I took the risk and made a bad investment choice” and remind yourself of millionaires like, Robert Kiyosaki and Trump, who lost millions investing into deals that didn’t work out. In fact Trump is known to have lost Millions in his lifetime but also made it back. Creating wealth is often about taking the risk. You must decide if it is worth it to you or not.
In closing, being someone who is a risk taker, I can honestly say when I lost the deal, or a business venture went sour or I lost value in shares or bought into the wrong MLM, the main reasons were because I didn’t listen to my gut instinct, I didn’t do proper research and I didn’t really believe in it, something felt off.
You have to decide for yourself, do your due diligence and then go with your gut feeling?
I’m not a financial advisor. I am someone who does not like to work hard for their money, even though I am guilty of working hard for money. I don’t like working 9 to 5 and prefer to be my own boss and work in the comfort of my own home. I am someone who loves to make money and have money. I am someone who also likes other people to have money and if I have the opportunity to spread wealth without stealing it or taking what someone else has I’m going to share it with with you. You must do your own due diligence and make up your own mind. If you are genuinely interested in helping others please complete the form and let’s see how we can change the world together.