There's no substitute for work

October 22, 9:12 AMBoise Business Strategies ExaminerThom Stratton

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One of the many advances of the Internet is the ability for con artists to reach a broader audience more quickly. In these troubled economic times get-rich-quick schemes are everywhere. One of the newest is from companies offering to help people set up online retail businesses. For a fee, they will do practically everything for you to get you set up with a website where you can sell products. Other companies will claim to be the ideal drop-shipper, a company that ships directly to your customers on your behalf.

This is not to say that all such offers are scams. There are some legitimate businesses running legitimate, effective programs. But many more are only interested in getting your money. Your only defense is to either ignore them all or to do your homework. Here are a few ways you can avoid being scammed:

1. Check with the Better Business Bureau. The BBB will provide a general rating of each business as well as additional information about how many complaints they have received about that business and how many the business has adequately addressed. Failure to be listed by the BBB is not necessarily grounds to avoid a company, nor is having had complaints filed (people are, after all, people), but it can begin to give you an idea how reputable the company may be.
2. Take time to verify claims. For example, one drop-shipping company lists the products they sell and the "wholesale" price you will pay. A quick search for the identical product on Amazon.com, however, reveals that you could buy it cheaper paying Amazon's retail prices than you do buying "wholesale" from this company.
3. Check for reviews and testimonials, but be skeptical. Some dishonest businesses will create their own "review site" under a different name, giving themselves glowing reviews. Some will pay others to give them good reviews. Testimonials can be easily faked or solicited. Not that these should not be considered. Just look for clues that such are too good to be true.
4. Get as much information as you can up front. Legitimate businesses will certainly want to protect their intellectual property as much as they can, but they will also understand that sometimes you have to give a few things away to bring in the sale. Companies who refuse to reveal any information until they have your money should be approached cautiously.
5. Expect to work. Work hard to investigate the company before you buy. Expect to work hard to make the business successful. No one will ever be as dedicated to your success as you are. Anyone promising to do the work for you may produce shoddy work. Make sure they clearly identify what they will do and what you will need to do.
6. Watch out for hidden costs. Read the fine print on any agreements. Find out as much as you can beforehand what other costs may come up. Be ready to contest quickly and vehemently any unexpected expenses. Use a good credit card to pay for any services in case you need to declare fraud.
7. Abide by the terms of any guarantees. If the company offers any sort of guarantee, make sure you keep your side of the bargain. Do not give them any reason to declare the guarantee voided.
8. If you don't understand, ask. Never assume that they will explain things better once you've paid. If something does not add up or make sense to you, ask. It's your money, and you have every right to be completely clear and comfortable before you hand it over.
9. Avoid pushy tactics. Do not let anyone push you into an agreement if you're not ready. Take you time. Though they'll try to convince you otherwise, time is on your side. Not every special offer is just to get you to sign before you have a chance to think things through, but it is always better to be comfortable with your decision before you go ahead.
10. It takes money to make money. You should expect to pay some money to start a business. Anyone who charges you too little for their money-making secrets should be just as suspect as someone who wants to charge you a lot of money when you're not sure what you'll actually get. There are inexpensive ways to get into business for yourself, but never free, and seldom for $19.95 plus shipping.
11. Be wary of shortcuts. It may cost some time and money to register a legitimate business and pay the right taxes, but you'll seldom regret it. Don't let anyone convince you to take shortcuts around government entities. These people will not stand by you when the IRS comes to audit or you run into legal trouble. Much can be done under the auspices of "self-employment" or "hobbyist", but if you are looking to start a legitimate business you should act like one from the outset. You avoid more trouble and you build your own credibility.
12. Don't spend money you can't afford to lose. Sure, there are success stories about people who invested their very last dime and hit it big. You hear those stories because they are rare--they're news! Chances are those people would have hit it just as big sooner if they'd not waited until they were nearly broke. But going into business is a risk. Don't take the risk if you can't afford to fail.

Owning your own business is a big part of the "American Dream" for a lot of people. It can be a fun, rewarding, and profitable venture. But there are far too many others out there for whom your dreams are nothing but an angle that can be used to make themselves rich quickly. Do your homework. Be ready to work hard. Don't get taken in.

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