Startupreneur

For the First Time Entrepreneur

Of Business and Businessmen

Posted by Vijay on November 16, 2006

They come in many forms and I have seen them all. Wanting to give you business, wanting to partner with you, wanting to help you scale new heights.

The main thing to remember here is to remember that THERE IS NO FREE MEAL. If something is too good to be true, then IT IS too good to be true.

As a small business you are always looking for business opportunities. However you need to stop and analyze carefully before you jump in. Even if it means delaying your decision. The fist instinct is trust every opportunity that comes your way. Don’t do it. Qualify any lead that comes in and do a credit check. You cannot afford long payment cycles as a startup.

Here is how to identify fraudsters:

1. If someone is looking for any advance payment to give you business. Then there is NO business. If there was business, they would not be asking for an advance. This is a common scam thats employed.

2. If people talk big numbers without proof (you’ll make a million bucks in 3 months), then they are frauds.

3. Anyone looking for minimum amount of paperwork is generally not completely above board. Normally all legit operators have good solid paperwork.

4. If they give you an Non-Discolsure that looks like its been cut and pasted (and its easy to see that), show them the door. Don’t sign any agreement that has verbiage that will prevent you from continuing your business. Have a lawyer whet each one. I know it costs money but its worthwhile in the long run.

Look at any opportunity with a long term view. No shortcuts.

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One Response to “Of Business and Businessmen”

  1. Sounds like I am getting into another presentation with a prospective client. My sales team does all these though! Interesting to follow. I shall follow this link judiosiously!
    I would suggest my BIL also to look into this one but not my brother! 😉

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