It wasn’t much of a shock for NFL nation when Andrew Luck, the consensus number one draft pick was selected number one overall by the Indianapolis Colts. Most experts would agree that Robert Griffin, III or RGIII was going to be the second pick of the draft. The biggest shock came the when the Washington Redskins bet their future on the Baylor quarterback.
Anyone who followed the NFL Draft knew the draft was going to go this way, but what a lot of people don’t understand is the science that goes into building a team through the NFL Draft and entrepreneurs can take the same approach to their business.
“We did our due diligence and studied them like heck,” new Colts coach Chuck Pagano said of the quarterbacks.
Due Diligence: This is a word that is thrown around all the time by analyst. It wasn’t until the week of the draft that the Indianapolis Colts confirmed what everyone else suspected which was that Andrew Luck would be the first pick and RGIII would follow. However, it wasn’t simply set in stone. The Colts and Redskins practiced due diligence.
Websters defines due diligence as:
- the care that a reasonable person exercises to avoid harm to other persons or their property
- research and analysis of a company or organization done in preparation for a business transaction (as a corporate merger or purchase of securities)
In relation to the NFL Draft, scouts and experts didn’t finalize their selections until they absolutely had to make their selection. For each of the teams, it meant putting in hours and hours of time evaluating prospects by watching their game film, interviewing them, having them workout, etc.
Similarly, entrepreneurs should take the same approach to their business. Entrepreneurs should know every aspect of their business. They should know the future trends of their business, they new products and everything they can know about their business and industry. Just as the NFL teams spent hours and hours evaluating prospects, entrepreneurs should practice their own due diligence.