When doing business, whether online or in the Real World (tm), it is up the parties involved to look after their own interests. In some cases (and in some countries), the government can take an active hand in ensuring a certain level of accountability, but the businessperson is most often best served by performing "due diligence" on his own. While there is such a thing as being "too paranoid", its never bad advice to read every word of a contract before signing, and to investigate the claims of the other party or parties involved in a business deal. Since it seems to be All The Rage at the moment, I''m going to focus on ways of investigating the claims made by individuals and businesses. Don''t ignore the possibility that the company making the claim might be willing to provide documentation to back it up. So if you have a question about something, just ask them directly. Generally, you will get facts, though you may not get *all* the facts. After all, no one likes to present information that makes them look bad or weakens their position. The most obvious first step is to ask for references. It''s expected that any person or company can provide 2-3 names of indvididuals or businesses that have Good Stuff (tm) to say about them. If they don''t, that''s a Good Sign (tm) that you should probably not bother doing business with them at all. Talk to the references they give you, but expect to hear that Good Stuff (tm). At worst you may hear about some minor annoyance, but remember the company in question gave you these names because they *expected* them to tell you Good Stuff (tm). So you''re going to need to take it to the next level. Ask those references to give you 2-3 other names who might have further information you would find useful. Assuming these names are different from the first set, you actually stand a chance of getting more diverse information. Or, if the company really is a good one, you''ll simply hear more glowing testimonials. Another avenue you can use to dig up information is to ask your own "personal network" for what they know about the company in question. All businesses and industries tend to be a bit "in-bred", with only a few degrees of separation between those involved. There''s a strong chance that if someone you know *doesn''t* know something, they know someone who *does* know. You could also search news databases and see what has been reported about the company, if anything. Or just do a simple web search from some place like Alta Vista or Google and see what turns up. And if you turn up something in a public place that verifies something you learned privately, feel free to ask the company about it, whether it''s negative or positive. You lose nothing by asking, and you give the company a chance to present their side of the issue. When doing the investigation, however, keep in mind that discretion is always in order. It''s inevitable that some of the people you talk to will be under Non-Disclosure Agreements or otherwise wish to remain anonymous. So if you take the information you collect and begin pasting it onto public message forums and newsgroups, you compromise their confidence and open yourself and them up to libel and breach-of-contract lawsuits. Journalists can claim "freedom of the press", but it''s unlikely that you will be able to use that plea...and even journalists get sued for libel. Protect your sources. You might need them again someday. And, in case it''s not obvious, it''s exactly the kind of information you''re wanting that you will probably *never* get if you start your investigation by asking for it on a public forum. Discretion and common sense are vitally important in business (and they don''t hurt in other aspects of life either). And with that in mind, remember that this is only one person''s opinion. I welcome any feedback on this, and I would like to hear of other "investigative techniques" that people use/have used. DavidRM
Samu Games

That''s certainly a good way to do things.

I''ve recently been involved with a couple of companies and I did similar research.

When I started working with these companies, CW-i and Crystal-Interactive (UK one), imagine what I was thinking when I read on here that some people were accusing CI of being a undesirable company.

So I did research similar to what David has said and I found out some very interesting things about all three companies and I also proceeded to post here about the two different Crystal Interactives and how they are different companies (which they are BTW).

Imagine my suprise when the CEO of CI phoned me and put his side of the story across, this on a Sunday morning too. This spurred me on to go back to my original contacts and get both sides of the story.

The moral of this is I now have a virtually complete picture on all three companies and know who I want to deal with and who I don''t. I say virtually, because you will never beable find all the facts a figures......


I have to say that although he does things a very odd way and has annoyed many people no end, at least Nicole Poster has made people more aware on checking out companies as a whole.

It''s always nice to be contacted by a companies if you are amateurs and want to sell your game, but you can be ripped off, it DOES happen and it WILL happen, if you are not careful.




Marc Lambert

marc@darkhex.com

Hey David...?

I wrote you an email and it was automatically returned saying it was spam ??? That''s.....rude....

It wasn''t me.

A lot of email servers these days automatically refuse email that''s sent from email servers with a certain "anti-spam" setting turned off.

If you want to send it again, try sending to davidrm@samugames.com.


DavidRM
Samu Games

I found David's post to be pretty spot on when it comes to doing your 'due dilligence'. I would like to add a couple of sources to the list that he uses and broaden the scope to include other times when you want to use this.

First off, your Better Business Bureau and/or your city's Chamber of Commerce are great place to get information from. While the CoC will have a variety of information, checking the BBB will really only dig up public complaints against the company in question. These complaints will be documented as they have to be for them to be accepted by the BBB. It will give you a little more diverse understanding of the company you are dealing with. If neither the CoC or the BBB has anything on the company, then most people consider this a good thing.

Another good source of information is your local court house. All legal documents filed against a company will be here and are usually free for the browsing or available for a nominal fee. This should give you a decent indication of the financial stability of the company should you believe it to be in question. Often times as a company begins to take a downturn financially, their creditors begin to file lawsuits against the company. In the case of a publisher such as this CI stuff going around, you should be able to verify anything that was actually filed against the company. Because there are two sides to the story, I usually rely on only what has been formally filed with an agency, be it legal, BBB or others. The rest of the stories you hear are more than likely one-sided in nature and not relevant to your process of investigation.

Finally, if the company is public, please do not forget to use the wealth of information that can be found on the web at financial houses. Everything from compensation of employees, to financial statements, to their organizational structure can be found.

'Due dilligence' is dependant on what you are doing the research for. The amount you do is up to you and as David said your responsible for the decision. The info presented here is done so for those that wish to dig even deeper than David has presented. My only other note about this applies to when you should perform your 'due dilligence'. I like to think this small list sums up most of the times you as an individual should look for information on a company:

-Before being hired as a w2 with no options/stock employee at least look at financials and check to make sure their reputation won't hurt your resume.

-Before being hired as an owner/partner or stock optioned employee you should ALWAYS check the books, legal, and request any info from BBB and CoC. Accepting stock in a company as compensation is only as valuable as the company's ability to keep the value of the stock on the rise.

-Before signing a contract for publishing or any such subcontract work, check to make sure there are no complaints about the company and that they can financially handle the completion of the contract terms.

-Before purchasing stock on the open market or exercising options you may have at a minimal check financial research and financial discussion boards for information on the company.

-Last but not least, before you forge a partnership with that art firm being run out of the basement next to you home office, check to make sure that company can deliver and is financially strong enough to last the length of your project should need them after the contract is up.

I hope this additional information helps.
Sincerely
Kressilac




Derek Licciardi
President
Elysian Productions Inc.

Edited by - kressilac on February 14, 2001 10:56:25 AM