Thursday 14 July 2011

Research No 1 - Why research / evaluate an Employer / a Supplier / a Business for Sale

This post is the first of a short series which looks at researching for particular purposes or circumstances. Thus,the circumstances for evaluation are: i) a job-seeker evaluating a prospective employer; b) a start-up business reviewing a supplier of goods and services; and c) possibly, a start-up business initiating due diligence of a business which is up for sale. All three are is likely to find that it takes time.

Taking time to research properly may well pay-off (in time and cost) for the job-seeker in terms of the likes of:




  • aborted or fruitless CVs (and covering letters) or job applications;


  • failure to get interviews;


  • unpreparedness and hence inadequate interviews.


For the supplier-seeker inadequate research may mean critical losses (of time, costs and customers) due to the likes of one or more of:





  • failures of supplies to arrive on time;


  • poor quality products or services which need to be returned; and,


  • poor after care and support.


The buyer of a business will need to ensure adequate research so as to avoid aborted costs, lost time, and possible problems such as:





  • hidden problems, eg unpaid accounts,wages, and/or taxes;


  • problems with the management, eg production of goods, delivery of services;


  • personnel problem, eg staff leaving;


  • outstanding liabilities or claims against the business;


  • non-compliance with statutory requirements, eg taxation returns.


Some lines of enquiry and sources of information for each of these will be the same but the approaches are certainly very different.

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