It happens so easily and so quickly. You hear a persuasive presentation and you think, “Wow, this is a great idea and sounds terrific” and then, before you know it, you’ve pulled out your credit card or cheque book and made a decision to invest money or to lend someone some of your hard earned money without having done any research. Worse still, you may have even borrowed money in the hope of getting a quick return with this tremendous opportunity! The presentation is often punctuated with a call to action and a need for urgent action. You are told that if you don’t become involved immediately, the opportunity will pass you by. While this may well be the case in some situations, it is frequently a sales technique in order to force you into a decision as quickly as possible.
One of my personal mottos is that: “The opportunity of a lifetime comes past at least once a day.” With this as one of my guiding principles, and my abundance mentality, I simply say to myself: “If I am going to miss out on this opportunity, there will be another bigger and better one, just around the corner.” Accordingly, whenever a salesperson tries to impose urgency on my decision making process, I simply respond by saying: “Look, I wouldn’t like to deprive anyone else of this wonderful opportunity. So go right ahead and make it available to anyone else. As far as I’m concerned I will be doing some research before I make a decision.”
It’s been my experience that in almost all cases the salesperson has backed off and tried to re-track in order to keep me as a hot prospect for whatever I was being offered. Essentially what I do through this response is to put the ball back in my court so that I am in control of the decision making process since it is my money that I am being asked to part with.
As you climb the money tree, you will no doubt come across a number of scams, doubtful opportunities and illegal schemes. The key is to avoid the sharks who want to rob you of your money and costly mistakes that waste your cash and drain your energy.
Due diligence is basically a fancy word for doing research. It requires a detailed and careful examination of the operations and management of a potential investment and verification of the material facts relating to that investment or operation. By verification, I mean that you need to confirm the reality, or the existence or the truth of statements or claims made by either a promoter or the management of an operation.