4 ways to conduct due diligence before buying a business: Domain name, social media, time and effort analyzed
What is Due Diligence?
Due diligence is an investigation, conducted to verify the facts and details of a proposal. In the financial world, it requires checking financial records before initiating a proposed transaction with another party. It is also a systematic method for analyzing and reducing risks associated with a business or investment decision. Don’t worry, people and individual investors can easily use publicly available information to conduct due diligence for any stock, business, and transaction.
It can also apply to a situation that involves researching the performance of the business you are planning to get into, evaluating its performance over time, and comparing it with competitors.
According to the dictionary definition, due diligence means "measures taken by intelligent people to avoid harming others or their property." In short, it means doing your homework on researching.
This article will help you to ask the right questions about doing due diligence on a business – let’s dive in.
1. Look for the domain name – is it available when starting your business?...
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You are going to start a business and everything is set up but things are still kind of hazy. You have picked a name but are you sure it is available? Doing due diligence on a business requires being smart. You can’t rush things; you have to make sure that everything you do is properly timed and mannered.
In this step, all you have to do is use the GoDaddy domain name checker. The first thing you need to do is go to the website and gently type in the business name you have thought about and just hope and pray that after clicking, your ideal website domain displays as ‘available’.
If serendipity isn’t on your side and everything goes askew, you will need to come up with another name for your website or business – keep trying your luck until you find what you need.
2. Are the social media accounts available with the same name?
The world is changing every day but the only thing that is not changing is the hold of social media. It is definitely getting stronger with each passing day and it is here to stay for a very long time. The next thing you have to look into is deep social media analysis. Hop on to all the different mediums and see if your brand name is already being used by someone else.
Social media is the place that is the source of marketing these days so if your brand name is already being used by someone else, you won’t be able to use it. This step may look like not a big deal and I have seen people adding numbers, dashes, and full stops in the usernames just to make them different from the existing ones – but that never makes a real brand. Your business should have a name that isn’t being used by anyone yet. Can you image if Apple’s name on Instagram is @__apple, or Coca-Cola’s as @Coca_cola-Drink123? Doesn’t look great.
3. How many hours will it take to run this business – Will you be busy 24/7?
When people start a business, they usually don’t think about how much input should be put into a business. You might think that getting something started will be easy and quick but it can be pretty time-consuming.
Startup Streams have many stores, each catering for different niches and offering different digital products to sell. This means that all Startup Streams’s stores are easy to manage and they don’t take a lot of time to run. So, if you want a low maintenance business, visit Startup Streams and get your work done without putting in a lot of effort and having sleepless nights.
4. How much effort is involved?
If you have to evaluate your efforts on a scale of 1 to 10, how much would you spend on those efforts each day and what would your results be? If you are not in the desired place to put the effort into your business, then your dream and all the plans may go down the drain. Effort is the only thing to succeed and achieve what you want, it is absolutely necessary, and it is also lacking in many people who are striving for great success.
Running a business requires a lot of effort – we have all heard it, right? But when you are working with the right sources, it doesn’t have to be as hard as it usually is for many people. Enter Startup streams: The businesses for sale on this wonderful platform can take a few hours a week to manage once your marketing campaign is running...