Avoid Undue Diligence like the Plague
June 2, 2008
Due diligence is the verification of information given to an investor by a startup in contemplation of a potential investment. Undue diligence, the solicitation of information for competitive reasons…
You are more likely to fall victim to the services of a competitive intelligence expert…
Don’t respond to RFPs unless you are in a commodity business…
This article illustrates how the simple approaches to gathering competitive intelligence data often lead to success even when the target is suspicious of your intent. Sour-grapes and self-pity are no substitute for vigilance and competence. The author of this article did not understand what constitutes a trade secret and a competitive advantage.
Not sure what trade secrets or competitive advantage had to do with my post. I was simply making the point that responding to RFPs is often a mistake, especially for service businesses. I stand by my stance. Ironically, the competitive intelligence ‘agent’ expressed ’sour grapes’ and ’self-pity’ when he threatened to sue me for pointing this fact out. Don’t be surprised when a business owner is annoyed when he learns that you have been wasting his time.