Whether you're hiring a web designer, partnering with a manufacturer, or becoming a service provider yourself, doing your due diligence before entering a business relationship is crucial.

Too many local business owners in Crawley, West Sussex, and beyond have learned the hard way that not every business delivers on what it promises. Worse still, some don’t even operate legally or ethically.

In this blog, we’ll walk through how to carry out due diligence; what to check, what questions to ask, and how to protect your business from costly mistakes. Whether you’re the buyer or the seller, this process matters.

What Is Due Diligence?

Due diligence is the process of checking a business’s background, financial health, reputation, and legal standing before working with them, either as a supplier, client, investor, or partner.

You might associate due diligence with buying a company, but in reality, you should apply these principles in every new business relationship.

Why It Matters (Especially for Small Businesses)

Large businesses have legal teams and compliance officers but small businesses rely on instinct and goodwill far too often.

But in today’s world, that’s not enough.

Failing to do due diligence could mean:

• Losing time and money on unreliable contractors
• Becoming legally responsible for a partner’s actions
• Getting involved in late payments or disputes
• Damaging your own reputation by association
  

If you're a Crawley-based business, you might already be working with other local suppliers, freelancers, and clients. Due diligence helps make sure those relationships are productive, professional, and protected.

1. Check the Basics: Are They a Real Business?

Start with the essentials. You’d be surprised how many “businesses” aren’t even properly registered.

Look them up on Companies House

If they’re a limited company, you can find them on Companies House:

• Is the business active?
• Are the directors who they say they are?
• How long have they been trading?
  

Check VAT status (if applicable)

You can verify their VAT number here.

Are they insured?

If you’re hiring a service provider (like a tradesperson, designer, or marketer), ask to see:

• Professional indemnity insurance
• Public liability insurance
• Employer’s liability insurance (if they have staff)
  

2. Ask for References or Past Work

A credible business should have no problem sharing:

• Case studies
• Testimonials
• Contactable references
• Examples of previous work
  

If you're considering a partnership or large contract, ask for at least two recent references — and follow up with them.

Don’t just ask, “Were they good?” — instead ask:

• “Did they deliver on time and within budget?”
• “What was communication like?”
• “Would you work with them again?”

3. Review Their Online Presence

Google their name. Check their:

• Website
• Google reviews
• Trustpilot or industry-specific platforms
• LinkedIn profiles
• Social media accounts
  

Red flags to look out for:

• No web presence at all
• Consistent complaints or negative reviews
• Vague claims with no proof
• No clear way to contact them
  

Crawley and West Sussex are full of skilled, reputable small businesses but they compete with fly-by-night operators. Online presence often separates the serious from the flaky.

4. Assess Their Financial Health

This is especially important if:

• You’re entering into a long-term contract
• They’ll handle your money or assets
• You’re providing services on credit terms
  

Limited company?

Use Companies House to look at their filed accounts:

• Are they profitable?
• Are there large outstanding debts?
• Is their balance sheet in good shape?
  

Sole trader or freelancer?

You won’t find public records, but you can:

• Ask how long they’ve been in business
• Request a copy of their public liability insurance
• Ask for testimonials from previous clients
• Trust your gut — but verify it with other checks
  

If you're unsure how to read company accounts, Curve Accountancy can help. We've supported dozens of local businesses in Crawley and West Sussex in assessing partners and potential clients before making big decisions.

5. Check for Legal or Regulatory Issues

Depending on the industry, ask:

• Are they regulated (e.g. by the FCA, SRA, ICO)?
• Are they GDPR compliant?
• Do they have any ongoing disputes or County Court Judgments (CCJs)?
• Do they use up-to-date contracts?
  

You can check for legal issues like CCJs or insolvency events using services like:

• Company Check
• Creditsafe
• Experian

6. Get Everything in Writing

Verbal agreements won’t protect you if something goes wrong.

Before working together, make sure you have:

• A clear contract or service agreement
• Terms of payment and delivery
• Cancellation clauses
• Confidentiality terms (if applicable)
• Ownership of intellectual property (for creative work)
  

Use professional templates or better yet, ask a solicitor to review key agreements.

7. Do a Gut Check

Due diligence isn’t just about numbers. It's about confidence.

Ask yourself:

• Are they transparent and professional in communication?
• Do they set expectations clearly?
• Do they answer questions without getting defensive?
• Do they seem pushy or evasive?
  

If your gut tells you something’s off, dig deeper.

8. Protect Yourself (Even When the Other Business Looks Legit)

Sometimes, even credible businesses experience cash flow issues, delivery problems or unexpected disruptions.

Protect your business by:

• Using staged payments (don’t pay 100% upfront)
• Including late payment clauses in your contracts
• Having backup suppliers in place
• Getting signed NDAs when sharing sensitive information
  

Local Due Diligence

If you're a business owner in Crawley or surrounding areas like Horsham, East Grinstead, or Gatwick, the good news is:

There’s a vibrant network of professional, trustworthy service providers in our local area.

We’re proud to work with many of them at Curve Accountancy and can often provide recommendations or insights if you’re unsure about a new relationship.

Need help vetting a partner or assessing a supplier's finances before committing? 

We’re happy to help.