Many entrepreneurs dread the seemingly mysterious due diligence process. However, there are a few steps you can take to help you to survive the process
We’ve all heard stories of business plans being scrutinised and whole deals being killed after being closely examined by an experienced investor.
Here are 4 of the best tips for surviving Investor due diligence:
#1: Ensure that the entire team is up to speed
When you are working in a team setting, you need to be aware of all of the changes being made, as should everyone else who is involved. It’s a good idea to hold meetings frequently, just to discuss the projects and the progress you have made. This will also be helpful when people have missed a day of work or are confused about part of a project.
Actionable Takeaways :
● Find ways to keep your team connected with each other through meetings or some type of messaging.
● Be sure to include all team members in these discussions and updates.
● It may be useful to create a list of names, email addresses, and phone numbers for each person in the group so everyone can be contacted efficiently.
#2: Know your facts
If you don’t know what you are talking about, then you may make a wrong move or put your team behind deadlines. It’s important to speak to those who are very educated on the topic so that you can clear up any questions you may have.
● Be sure to ask questions as needed so that you can perform your job better.
● Knowing enough about the topic at hand will help you to be successful, and it will help you to feel more confident in your work.
● Double check any statistics or facts you hear to make sure you are relaying correct information back to your group.
#3: Find and utilize references
Often when you are beginning an investment job, you will be given references. This list usually includes people who have worked closely with the entrepreneur and can be of value to you as you invest in this new business.
● Dig deeper to find extra resources through these initial references you have received.
● Speak with other investors and entrepreneurs who are working in a similar field to gain more expertise in the topics.
● Locate some potential buyers who you can get opinions from about the startup so you can get a sense of the audience and the overall consumer interest.
#4: Be Extremely Responsive
We have all emailed someone about something important and then waited for a reply for over a week. You don’t have to reply within five minutes, but try to reply as soon as you can. If an email requires more research on your end, tell the person you need to look into the issue a little more deeply, but get back to them again when you have a professional and correct answer.
● Don’t be afraid to tell someone that you need to look into the topic more before answering their question.
● Find an email app for your phone that works well in showing you the most important emails first.