The research is part of an investor due diligence exercise. Whether you are working with investment professionals or on your own, doing your research homework before making an investment decision will help you make better decisions. Whatever your investment idea, it needs to be supported by the right information and data to be successful. If the business idea you plan to invest in is not properly managed by feeding it with the necessary information, your investment risk will be much higher than the investor who does the necessary preliminary research.