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Just Good Business or a Scam?

A business is designed to make money for the owner through the selling of products or services.

A scam is designed to make money from the exploitation of ignorance – tricking someone into thinking what they are doing is the right way to behave.

The secret to good business is to know your business, and not be ignorant.

When starting a business, you need to learn as much as you can to plan properly.

If buying a business, you also need to judge if the price is fair?  But more particularly, do you actually want what you are being sold?

A franchise business should come with tried and tested products or services and systems.  Good franchises will give you training on how to use these efficiently to make your business a success too.  But you will have work to do to complement this so still need to learn about the business.

Learning your business

  • Is it a good enough product/service? For you to boast about and hence be able to sell?
  • Are enough people willing to pay the price? If no one will buy, then there is no business
  • What/Who/Where/Why/When? – you need to know these to find your customers.
  • What are the product costs, including delivery? You need to sell at more than cost to make money
  • What are the expenses? – You need to cover expenses and leave something for your efforts.
  • Are you getting value for money on all your expenses?
  • What are the rules & regulations?
  • What are the taxes?

Scams to avoid – Deals too good to be true?

  • Buying stock that you can-not sell at a profit – do your research first
  • Overstocking such that it goes out of date/fashion before you can sell it – Do your calculations first
  • Buying unseen, untried, untested, uncertified – assess the risks
  • Big profit margins on recommended sales prices – but are they achievable, and how much to YOU get?
  • Large commissions – what are they doing for their share of your money?
  • Random bills chased for payment – check the product or service was received and has not already been paid
  • Change of bank details – double check that they are legitimate
  • Advertising – test/check it is happening and working
  • Advice from social media or the Pub – check it out with a professional
  • Know the real regulations, fees and penalties – don’t be scared into paying extra

Ignorance is bliss – until you get scammed!

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