Due Diligencing
So you’re thinking of taking on a new partner, eh?
Have you researched him?
I would like to dedicate todays post to the most important part of building organizations - due diligence. Most of you entrepreneurs out there that are reading this probably get scared by the words since the natural inclination is to think of VC DD which can sometimes be painful.
However, the point of this post is to help you learn what it takes to do proper research.
1) Always ask for references. Always get phone numbers and always get the story behind the reference, not just a name. This will let you poke for inconsistencies.
2) Always make sure you have references that are both on the same level and superior. Often times, the people that work directly with the person on the level are a better resource of true productivity then the boss. After all, the boss can be an airhead asshole.
3) When interviewing someone (or just talking) ask open ended questions and let the person run their mouth. See what they are about. Interject - see if they can listen or only talk. See what they really think on topics.
4) Always ask negative facing questions. In other words, have the person rip apart your company or product or plan. This way, everything is on the table and it provides constructive criticism and helps a company learn from its mistakes instead of everyone wearing white gloves.
5) Have the person sell you on why your product is amazing. Turn the tables and have them sit in your chair and see what they do and how they respond.
This approach will let you get more real information out of people than simply going line by line through a resume and listening to bullshit being puked upon you.
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