Ten tips to prevent being scammed out of your money online when trying to setup a Business
It is now more than ever that anyone intending to set up a business must have built into the Business Startup DNA 7 disciplines.
1. Identify proper business advice or support
2. Take a short but credible Business Entrepreneur Course
3. Prepare a Business Plan and Cashflow Projections.
4. Setup Proper Legal Status, Bank and Merchant Account
5. Identify where you can apply for business startup funds and apply
6. Established Google verified Website & Social Media Links
7. Invest in effective Customer Aquisition online A.I technology
If you want to bypass these 7 disciplines, then you might be setting yourself up for failure and an empty bank account.
I have been in business for over 15 years. It is hard work, it takes resilience, the ability to adapt to change and short, medium and long term goal setting. (Not forgetting stress, the losses and wins).
I use to help individuals and partners establish their business startup when I worked for the DTI Business Development department back in 1986. The government engaged in a big national campaign to get unemployment down and increase small business startups. We were very busy.
I learnt a lot about the challenges facing business owners and I can confirm that there is no shortcut, no quick rich route to establishing a solid business
Now everytime you switch on your phone, click on Youtube, Facebook, Instagram to name but a few, there is someone telling you how they made 5 or 6 figure income each month by just doing a few clicks and 3 hours a week work! I suspect the reason most of them do this is because they are selling a replicatable business platform and each person who want to get involved needs to pay them several hundred pounds after you have been exhausted and convienced by a pretend training video which is just a long sales pitch! There I said it!
Even if you wanted to set up a online business, even if its a replicatable business, a amazon, ebay or spotify store I still beilieve that the 7 Business Startup DNA is essential so that you know where your going and not just sat there waiting for someone to come buy from your store.
According to a large Domain Name Registration Company there are over 9 million websites in the UK. Just let that sink in….and you would need to get people to it.
So my next point is how do you keep your hard earn money safe until you are really sure your making the right investment?
Study these ten simple tips to reduce the risk of being scams or fraudulently hoodwinked out of your finances just because your eager to start a business.
1. Be sceptical
If it sounds too good to be true, it probably is. Thoroughly question all:
Online or offline deals, propositions or
Quick money spinning Opportunities
Request for or photo evidence of money transactions
Information and the source
Anything can be pulled up, designed, prepared and recommended to make something look impressive.
2. A Business Plan will help you know your business inside out
Have a thorough understanding of your business so you know:
How it will operates
What manpower or collaborators you will need
The products and services it provides
Your target market and your business SWOT
Your legal and regulatory obligations
Your financial Projections
This will help you realise immediately when something isn’t right when you talk to other businesses. If they cannot answer indept questions about their business and spend a lot of time blagging, don’t part with your money.
3. Find out about suppliers and how they work
When you understand who you do business with you can spot any business request or transaction that looks wrong for that customer or supplier and may be fraudulent.
Conduct due diligence using a risk-based approach, such as checking the customer or supplier details you have on file, as well as online searches. Check the website links, don’t be drawn in by glossy spotify websites for instance, anyone can set one up in minutes, which is good for the industry, but also very helpful to dishonest people.
4. Identify your vulnerability to fraud
Imagine how a fraudster might target you, both emotionally and motivationally. If you are desperate for instance to start making money, will that sway your judgement to be more risky? A business or marketing plan with your own financial projection will help keep you focused, on pointand strategic.
5. Develop a personal development strategy
It is easy to assum that if you have been working for a company for many years, or have just completed your degree, or you have had a hobby for years that setting up a business might be the next logical step especially if you want to change caeers or create work for yourself.
This is all fine, but it might be a good idea to take a credible short course in Business Management, Marketing, Social media, etc to increase your knowledge base and get up to date.
6. Take extra care against cyber attacks and data loss
With increasing threats from cybercrime, protect your mobile phone, tablet and computer. Try not to post your mobile number across the internet. For instance buy a skype number. Also if your working on projects make sure you back up your systems in the cloud in case things get lost or corrupted.
7. Protect your finances
Understand how money leaves your bank account and how hard it is to replace. A few thousand pounds in your bank account might seem like a lot, but when incorrectly invested or spent will have you kicking yourself after te event try to:
place the bulk of your money in a 30 days request account. This may help slow down any implusive purchases.
take time to study and understand the concept of Return on Investment.
Take great care with anything offering continued electronic growth like bitcoin in exvhange for real cash and flashy websites with sophisticated algorhymes.
Invstigate if you can borrow money first and keep your cash for backup and liquidity. There is a saying, ‘Us other peoples money’
Try to use a different debit visa mastercard that you have to load up online from your bank account, this will help protect your own credit and debit card numbers from fraudsters.
Always check your bank statements.
8. Secure and protect your mobile and intellectual property
This includes laptops, computers, smartphones and intellectual property. Factor in home or business insurance to cover these items if they’re compromised, damaged or stolen.
It is also worth copy righting any itellectual property that you have designed or created. This can be for instance putting logos or watermarks, saving and sendind as pdf, taking videos with you working on your project or design etc.
9. Develop an action plan
Consider when you might need professional or legal advice. While prevention is better than cure, it’s important for you to design an action plan.
10. Avoid Duplicating, copying or forwarding anything online that is not your copyright
Cybercrime is real and you could find yourself accidentially committing or participating in a crime or even become a victim. Criminals are aware that word of mouth, recommendations and reviews achieved in your excitment can act as strong validation and are the best way to legitamise their criminal activity.
If you are asked to share, copy or forward something that requires people to commit to any payments, familiarise yourself with the website copyright, privacy and legal status.
You should report and share any links to the police. Call the police cybercrime department if you suspect or have been a victim.
Remember if it sounds or reads to good to be true then the odds are you need to dig deeper.
In a business plan template we will cover