Due diligence: A checklist for business owners
By Owen Rock, business strategist, Fond du Lac County Economic Development Corporation
So what is due diligence and why is it important? To put it simply it is making sure you are not about to do something foolish with your time and money. It is completing the background research whether you are starting a business or expanding your business.
When starting a business it is important to know:
- How will the business be set up,
- How will it operate,
- How many employees do you need to be successful,
- Who are your customers,
- Where are your customers located, and
- Who is the competition and what is their market share.
Putting together financial projections can assist with identifying how your business can make profits over the next few years. This is all part of doing your due diligence.
When expanding your business it is important to know how your industry sector is doing overall - what parts of the industry sector are succeeding and what areas are not.
An expanding business will also need to know if there are state or local incentives available for expansion or hiring and training the workforce. This is all part of doing your due diligence.
FCEDC can help start-up businesses by working with them to develop a business plan which will help identify potential customers, competition, marketing strategies, and financing. Researching and developing a business plan is all part of the due diligence for starting up a new venture.
FCEDC has a wide variety of tools to assist an existing business with their due diligence. FCEDC has access to several powerful databases which can be mined for information about a certain company, industry, or market. FCEDC also has access to geographic information systems and government websites. A customized report can be developed that will analyze information and assist with making strategic decisions for your next step in business.
