spotting opportunities among scams. lesson goals: for entrepreneurs to: –better understand small...
TRANSCRIPT
Spotting Opportunities Among Scams
Lesson Goals:
• For entrepreneurs to:– Better understand small business schemes and scams– Identify major types of small and home-based scams– Better evaluate the legitimacy of business opportunities
Assessing Self Employment Skills for Success
Do I have a deal for you!
Why are scams increasing?
Increase in the number of Micro-Businesses
2000 – 22,931,777
2007 – 27,361,179
From 2000 – 2005, new businesses starting with 1 – 5 employees grew at an average annual rate of 4.5%.
Spotting Opportunities Among Scams
Watch out! You could:
• Lose money• Damage your reputation• Risk legal investigation• Lose valuable time
Spotting Opportunities Among Scams
Watch Out! Be skeptical of statements…
• “You can earn hundreds of $$$ working from home in your spare time!”
• “Only $29.95 will bring you thousands in earning power!”
Spotting Opportunities Among Scams
Scamming Opportunities
• Assembly or craft work• Envelope stuffing• Internet-related• Medical billing• Multilevel and pyramid marketing
Spotting Opportunities Among Scams
Scamming Opportunities
• Scams against businesses• Seminars• So-called franchises• Vending machines and display racks• Wealth-building
Spotting Opportunities Among Scams
Business Opportunity Checklist
• Check out promoter• Don’t judge a company on
appearance• Ask for disclosure document• Watch for pyramids• Verify claims in person
Spotting Opportunities Among Scams
Business Opportunity Checklist• Get it in writing• Realize they are there to “SELL”• Avoid making high-pressured decisions• Check out sales, profits, and income claims• Seek professional advice• Be skeptical about “get rich quick” opportunities
Spotting Opportunities Among Scams
Remember:
If it sounds too good to be
true, then it probably is!
Spotting Opportunities Among Scams
Information and Assistance
• Federal Trade Commission• United States Postal Service• National Consumer League• National Fraud Information Center• Better Business Bureau• State Agencies
Spotting Opportunities Among Scams