On today’s episodes of Real Money Talks, I’m diving deep into what you need to do in order to keep the money you earn. As I’ve said many times, earning money is easy – the hard part for many people is often keeping that money and putting it to work for you. One of the best ways to manage and keep your money is ensuring you are doing your due diligence.
Due diligence helps you identify risks, mitigate risks, take responsibility for those risks, and helps you make educated decisions based on the information and data you’ve collected. That’s why today, I want to share with you my five-step formula to ensure you’re doing your due diligence before deciding to invest your hard-earned money into an investment deal.
Due diligence is the art of determining real risks.
In This Episode of Real Money Talks:
- What is due diligence and how can you learn it.
- Investing alone is a higher risk because you have no one to banter ideas or brainstorm discoveries.
- Dig through the data of what you are looking for.
- Once you’ve identified an investment, conduct a deeper dive of the data – look at their QuickBooks or accounting files, customer records, sales systems, marketing processes, and websites.
- The type of questions you should ask during the discussion process.
- Ask yourself: Is this problem big enough? Is the industry big enough?
- Discovery is the longest period of the due diligence process.
- The diagnosis process helps determine if the deal would go against your money rules.
Loral’s 5-Ds Formula for Due Diligence:
- Data
- Discussion
- Discovery
- Diagnosis
- Decision
Resources Mentioned:
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Loral Langemeier is on a mission – to educate and empower the Real Money Talks community on how to have those important money talks that are straight, to the point, and can be applied to every aspect of your life. So, tune in every Monday, Wednesday, and Friday on iTunes to learn, ask Loral a question, and create your path to financial freedom! Don’t forget to leave a review and grab your free gifts on AskLoral.com!