I am not the most meticulous person in the world; just ask my wife (insert laugh track).
Okay, so what’s my point?
It’s important for the sake of this post that you, the reader, understand that I can/have been known to miss details, forget, procrastinate and even neglect things. I would say that most of us strive to be our best, day in-day out, but we are human; and by definition, not perfect. I would like to think as I have gotten older (note: does not read maturer) I have developed skills that make me better at identifying the finer details.
Which brings me to the point of this post: DUE DILIGENCE.
It’s an exciting time for my wife and I as we just took possession of our first investment property. After, and with no exaggeration, a year and a half of research, market watch, reading books, attending seminars and leveraging the knowledge of experienced individuals; we made the plunge! To be fair we would have likely done this sooner had I not been downsized out of an organization a year ago, but I digress. The reason my wife and I are so confident in our investment is we’ve done our due diligence. We know what rents look like in our market and specific target neighbourhoods, we have a system for analyzing properties, we know how to assess cash flow on a monthly basis and we have a solid team of professionals who are genuinely interested in helping us. We are not the type of people who will throw money at something and hope it works out, we make DAMN SURE we are going to make money.
The process of due diligence doesn’t end either. We need to make sure we find the right tenants, and execute a residential lease agreement that adheres to the Alberta Tenancy Act, all the while, cover our butts. We also have a plan in place for continuous annual improvements, budgeting money each year to re-invest in our property. Trust me, it takes dedication and continuous learning/research to feel confident in an every charging market.
But I can’t help but think of situations where we subconsciously do our due:
For those of you who don’t know the NHL (or for my American friends: the hockey thing on ice) Draft is tonight and all the team’s will make their selections on what players they will build their future on. Now, NHL teams will prospect, scout, analyze these players for YEARS before draft day. By the time a draft pick’s name is read at the podium, the selecting team feels confident and comfortable with their selection, because of the all pre-draft work done by members of an organization: they’ve done their due diligence. As a hockey fan who lives in Edmonton, it’s been impossible to ignore the fact that the home team has had the #1 pick now three years in a row (note: read They’ve Sucked) and have been in an envious position of getting their pick of litter. Exciting times in town, unless you are a rival Calgary fan…but that’s for another day.
From a sales or sales management perspective we do our due diligence everyday. When we qualify/develop relationships/implement action with customers, address organization needs/create business goals, and when we hire; it’s crucial we do our due diligence. My organization is currently hiring and there is a process to which we follow when identifying candidates. We all do: the interview(s)! It is imperative we make sure that the person we intend to hire fits the company culture, is capable of the position, has the right attitude, and is adaptable willing to learn skills and acquire knowledge. When pursuing new business opportunities, whether it be expanding markets, increasing product sets or diversifying your business strategy; any successful plan is executed based on proper due diligence. The bottom line is in order for any one or any business to succeed, a key component is doing due diligence.
It’s obvious that the more I write, the more I realize I could write about different scenarios all day: and truth be told, I’ve got other things to do!
So where do you do the due?
Feel free to leave your comments below and thanks for reading.