
From checking reviews and taking up references for an estate agents you plan to use to checking accounts on Companies House and capital ratios for a contractor you are looking to appoint to build out a project, due diligence is key. We are often under time pressure to decide, however, remember the old adage: ‘Act in haste, regret at leisure!’
You will often be getting into a relationship that will last for months or years, and will have a massive impact on your business if it goes wrong (think appointing an architect who fails to achieve planning permission, or an estate agent who selects a tenant who defaults and won’t leave a property).
Gut feel is important, however back this up with cold hard data - there is a lot of information out there that is publicly available (eg Companies House), then ask for more information if you need it. Create a process when tendering for work, whereby you will get an early idea of how someone runs their business - do they answer calls or return texts, do they reply to a tender deadline in time or are they always a bit late.
How diligent someone is before you enter a contract with them will probably only slide once you are in that contract, so set a process where you can test their reliability over weeks before committing.
Combine your own selection process, your due diligence from references and reliable third party sources, and your gut feel, and you won’t go too far wrong.
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