Ep. 126 - How To Spot A Business/Investment Fraud

As a business owner, you have a financial target on your back. People assume you have money and will pitch you all kinds of ideas. Anything from an MLM, cryptocurrency, gold, or the next Amazon. Not that there's anything wrong with any of those items in general. But like anything else in business, it can be overhyped, manipulated, and sometimes down right fraudulent.

Yes, we get pitched all kinds of business and investment opportunities. And recently, we heard from a friend that they invested into a business that went bad. In fact, we were pitched the same business idea but saw too many red flags and chose not to invest. We even warned a couple people that were involved in bringing investors to the pitch that we didn’t think it was a good idea. Unfortunately, many people invested and lost their money and for some, their retirement. 

So we decided to record this podcast so we can share from our experience, how to recognize a bad investment. But on the flip side, how to make a good investment choice. Hope this helps. 

For the busy married entrepreneur that is seeking greater work-life balance, click this link and download our “Boundaries” worksheet - https://marriedentrepreneur.co/boundaries

To identify investment fraud, click this link to the Security and Exchange Commission website - https://www.investor.gov/protect-your-investments/fraud/how-avoid-fraud/red-flags-investment-fraud-checklist

Key Takeaways:

• Do your due diligence

• Don’t get caught up in the hype and your emotions

• Do ask questions

• Get the facts

• Beware of:

• The hype

• It’s the next Amazon

• The who’s who of investors

• Not answering your questions

• Time pressure

• Lot of time talking about the opportunity and little to no time on the actual business, research, financials, RISK

• Invest first, ask questions later