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• Overstocking such that it goes out of date/fashion before you can sell it – Do your calculations first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!