Equity 1 Group
Pushing back the frontiers of economic ignorance and restoring sound financial foundations, one family at a time.

Due Diligence

The formal definition of due diligence is “research and analysis of a company or organization done in preparation for a business transaction.” In simpler terms, due diligence is nothing more than “doing your homework.”

Can a consumer perform due diligence? Yes! Here’s an example of how performing due diligence should be a part of a consumer’s daily life.

Your home theater room is missing an entertainment provider. Instead of selecting the first one you find in the phone book, you should be researching and comparing several aspects of both options before committing to your entertainment choice. Don’t rush the process — take whatever time is necessary.

Next, compare availability. If your favorite channels aren’t available in your area or that particular provider doesn’t service your neighborhood, move on to the next choice. From there, compare equipment issues (e.g., dish mounted to your roof) and bundled services (e.g., Internet + cable). Now that you’ve narrowed down your choice to either satellite or cable, does your entertainment dollar still make sense?

Ensure that you don’t go overboard in performing due diligence. Spending three hours debating on a two cent different on toothpaste on sale isn’t worth your time.


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