I was at a several day seminar a few weeks ago and at several times throughout the seminar touched on the topics of due diligence. That got me thinking about my clients and their responsibilities for due diligence: with clients, employees, health and well-being, etc.
I have not done a background check on a potential client in quite a while. I did it once when I had a client who worked for Lexus Nexus and they did one for me. Beyond that there have been times that I was sorry that I didn’t, luckily those occurrences have been few and far between. But on small or new businesses there really is nothing to check. So, I have had to trust my instincts and reading of the person. There are those whom I have not taken on, because I did not have a good feeling about them.
Once I had a client was taking on a new client, I cautioned them to be careful, since the potential client had been in the headlines lately and I had also recently done a detailed review of their financials since they are publically traded. They listened to what I said and required a 50% deposit up front to cover costs.
Beyond going through my attorney, I am uncertain how do go a deep dive on a potential client, that is cost effective. I guess I need to talk to my attorney to get some ideas.
I have several clients who are obligated to do background checks on new and potential employees, typically transportation and Not-For-Profits. I personally like the idea and have implemented them in my office, all of my employees have had background checks. I have suggested this to several clients; or to have them at least at consider background checks for certain key positions. One of my clients now works for a company that does a more detailed check that just the IL State Police check. So I will be using that one for my future employees.
Since I have a few manufacturing clients and they have OSHA required training and standards, I encourage them for their own well-being and health of their employees to put a plan in place to exceed OSHA due diligence requirements, to have a true training plan in place. I have a client who does this type of training I offer them the contact information if they are interested, or suggest that they find their own training. One client has an employee that wants to be certified and be placed in charge of all safety training and requirements.
Due diligence can and does affect all aspects of a business and should be looked into analyzed and evaluated for risk. What have you done for due diligence for your business?