Q&A: Why are Due Diligence Checks Important?
Due Diligence & How Nike Lost $14 Billion
In 2013, Steph Curry was signed to Nike and coming toward the end of his contract. Nike wanted to present to him their plan to market Curry and of course, keep him (as he was coming off a fantastic season and growing in popularity).
The presentation, according to Steph’s father, Dell, who was in attendance, kicked off with one Nike official accidentally addressing Stephen as “Steph-on.” He said “I heard some people pronounce his name wrong before,” and later stated “I wasn’t surprised. I was surprised that I didn’t get a correction.”
It only got worse from there. A PowerPoint slide featured Kevin Durant’s name, presumably residue from repurposed materials and left on by accident. “I stopped paying attention after that,” Dell says. Though Dell resolved to “keep a poker face,” throughout the entirety of the pitch, the decision to leave Nike and sign with Under Armour was in the works straight after that.
One year later, Steph Curry is the MVP, and Under Armour has released an exclusive Steph Curry shoe. Curry is making Under Armour huge amounts of money, and he will arguably go down as one of the greatest shooters in the NBA.
Why Due Diligence Matters
Nike’s lack of due diligence is what ultimately cost them their deal with Steph Curry. Because they failed to do their homework, their prospect lost faith in their abilities. That’s why it’s so important that you do your homework and research on the prospect and their business so that you know what to say to them and what to ask them. If you don’t do this, you’re only going to embarrass yourself and waste both your and your prospect’s time.
No one wants to be on a call or in a meeting with someone who doesn’t know about their business. I can’t over-stress the importance of performing your due diligence. The more homework you do, the better positioned and greater confidence you’ll have in the call or meeting. Don’t rush this step or fail to review what it is you’re presenting to your prospect.
The more you’ve found out, the better positioned you will be in your discovery. There are so many ways to go about this. Facebook, Instagram, Youtube, LinkedIn, website, Google Reviews and more. Due diligence is a step that will ensure immense confidence in yourself and the prospect before the initial phone call or meeting with them.