The Quiet Light Podcast

The Importance of Due Diligence

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Today we are talking to Chuck Mullins all about due diligence. An internet business veteran who is now a part of the Quiet Light team, Chuck purchased his first internet business while still in college and was more successful at 18 than some of the most seasoned entrepreneurs.

For both the buyer and the seller, the due diligence process is one of the most difficult parts of buying and selling an online business. Fortunately, there are a lot of tools that can be used to simplify the process.

In this episode, Mark and Chuck look at over 20 different due diligence tools and explain how you can use them in our due diligence processes.

Episode Highlights:

Chuck guides us through a group of tools that can be fundamental to any well thought out due diligence plan. Any buyer knows that this is the most important thing you can do to make sure that no stone is left unturned when preparing to make that purchase and hit the ground running.

  • Try using a due diligence consultant service. We don’t advise leaving it all up to them but they can take some of the work out of your hands.
  • Never just research the business but remember to also research who is selling the business.
  • Google trends is very powerful. Google Trends lets you read the trends that any given business may have experienced. Be sure to be aware if your acquisition is “trendy” or “evergreen.”
  • SEM tools can provide insight into the business potential and the size of any risks.
    • Website crawling tools are used to determine customer and market trends.
    • Social media tools are an additional way to gain insight into connections for that business and also the business owner’s niche interactions in their niche.

      • Lessons from Due Diligence:

      • For first time buyers the best advice Chuck offers is that you don’t know what you don’t know. Due diligence gives you the answers.
        • Know what a tool is good at, put it in your due diligence toolbox, and use it correctly.
        • Surround yourself with the types of people who can help you. Be careful to use your lawyer for law and your accountant for money. Always remember that you as the buyer ultimately make the business decision.
        • Don’t be afraid to ask questions!
        • Keep good records of what you have looked at. Work off a checklist and be meticulous about it.
        • A seller is as interested in you in the success of their business.
          • Transcription

          Mark: Hey Joe, how are you?

          Joe: Doing good Mark, how about yourself?

          Mark: I’m doing well, I’d talk to somebody that we both know well and that’s one of our own Chuck Mullins.

          Joe: Mr. Chuck Mullins, good man he is.

          Mark: He is, yeah. He joins us on the interview on the video part push on the interview wearing his Quit Light shirt which he had embroidered. The only person at Quiet Light that has one. Although, He didn’t tell me that he made one for you. And I haven’t seen you in it yet.

          Joe: He did I almost put it on today. It’s just, it’s a little big so I [inaudible 0:01:16] it. I need to put on some layer, run it through a two cycles of the dryer.

          Mark: It would have been so appropriate because, you know, he’s wearing his shirt in this interview and you’ve been wearing your shirt in, and he’s getting, make one for me though of course.

          Joe: He should. You’re the founder of Quiet Light Brokerage.

          Mark: Absolutely.

          Joe: You should have like a logo on the back of your office chair that says Quiet Light Brokerage, what’s wrong with you?

          Mark:

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