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Key Takeaways Due diligence isn’t just for big deals. It’s a mindset that reveals itself in every decision you make, even mundane ones, like buying a secondhand car.
In business, like in car buying, you must define what you’re actually buying, inspect before committing, verify claims and assumptions, ask for documentation and structure expectations early.
The most successful entrepreneurs turn due diligence into a habit. They also know when to walk away from bad opportunities.
When entrepreneurs hear “due diligence,” they typically think of M&A deals, venture rounds or high-stakes partnerships. However, due diligence goes way beyond the boardroom, the million-dollar transactions and the high-stakes deals. It’s a mindset that reveals itself in every decision you make, even the seemingly mundane ones, like buying a secondhand car.
The discipline that keeps you from making catastrophic business mistakes will also save you from driving home in a lemon. But most importantly, practicing due diligence at lower-stakes levels leads to the right patterns when high-monetary stakes come along.
The illusion of “looks good enough”
The car under the dealership’s lights is shiny. The salesman is a smooth talker. Your instinct is “This is the right car for me.”
This is where business people get into trouble, not only with cars, but with hiring and business partnerships. First impressions can be dangerously misleading, and emotional decisions rarely hold up under scrutiny. The car that looks good and is polished is almost always hiding some mechanical failures, rust and poor accident history.
In business, glossy pitch decks and charismatic founders can mask red flags just as effectively. Surface appeal is the starting point, never the finish line.
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