I’m certainly no entrepreneur. No financial magician, either.
But I’m the kind of anal-retentive guy who will spend a year voraciously reading automotive reviews before I even think about approaching a dealer to trade cars. That’s no excuse for buying a Chevrolet Blazer, but I never said I was perfect.
So maybe that’s why I’ve struggled to get this term out of my head this week: Due diligence.
It cropped up twice this week, early as I sat in court listening to the mind-boggling tales of investor after investor who happily plowed thousands into Thomas Etheredge’s Wild West World, largely without so much as a Google of “Thomas Etheredge,” let alone any sticky details like a proforma or a business plan.
I’ve certainly underestimated the spell of a jailhouse conversion, let alone three of them.
And that says nothing of the bankers who handed over bags of money to him, apparently with little more than a hearty “Look me in the eye and hear me well.”
And then due diligence cropped up again as I researched a story on the relative lack of development around Intrust Bank Arena. It seems that business developers have this crazy notion that they’d like to gauge the demographic and traffic around the arena before they buy in and start building restaurants, entertainment venues and shops. It happens that way all across this great country of ours. Go figure.
So if there’s a moral to my week, it’s a growing appreciation of the folks who will follow the arena downtown to do business.
After they do their homework.
8 Comments
Bill – I find it somewhat interesting – and disappointing – how little there has been in the way of development around Century II. When we go to theater we routinely eat out but find very little within walking distance of C-II.
It’s been historically endemic downtown, I think – which is the challenge Jeff Fluhr faces as he tries to change the way we think about downtown.
Very true. The thing that gets me about the area near C-II is that it is busy every weekend and also a lot during the week. If THAT can’t pull development then how can we expect the Arena with fewer (but presumably bigger) busy nights to do so.
You are correct, Fluhr has some work to do. I would suggest he address two areas:
1) Public transit. If I take a bus down then I might wander around after and catch a bus from a different stop (rather than having to walk back to my car)
2) The ‘do-nut’ – the area AROUND downtown. We need to improve residential and ancillary businesses in the area 1-3 miles away from Broadway/Douglas. Delano (other than the little shopping strip); Midtown; South Broadway; etc.
Due diligence has never gone out of style, Buffett does it in good and bad times alike.
Film at +11.
Just asking, won’t a car in every parking spot during an arena event mean there is nowhere to park? Interrupting normal business traffic?
Who will plan a dinner or wedding or event downtown during an arena night?
Will arena business replace interrupted regular business?
Are well-attended evening parades, or RiverFest fireworks, a blessing for downtown/oldtown businesses? Just asking.
Good questions redbud. Thus the need for transit.
I think, redbud, that one of the key points coming out of last week’s discussion is that parking will be a constantly evolving issue downtown. It’s not an issue that’s entirely solved – ever. It will require the city and county to remain attentive and flexible throughout the arena’s duration.
I think, though, that you start by doing what they’re doing – looking for dedicated parking, up close to far away. It’s going to cost Wichitans something to park near the arena, as it does everyone who attends any event of any magnitude.
Here’s an eye-opening post from an economics professor. We could substitute a few words, and it might apply to our due diligence issues.
http://mjperry.blogspot.com/2009/07/law-of-unintended-consequences.html