Tis The (Economic ) Season For Entrepreneurial Scams

If you've watch any television at all in the past couple of weeks, you may have noticed a dramatic uptick in the number of ads for do-it-yourself entrepreneurial...well, scams. I call them scams because they completely misrepresent the opportunity (if one exists at all).

For example, I recently saw an ad for a well-established, multi-level distribution company. They basically say "Sign up to sell the stuff we sell you and you have an instant business. It's easy!" There are an increasing number of postings on job boards for "Six figure income working from home" and "No selling required, work part time earn $6K a week!"

Many of these fall blatantly into the "too good to be true" category. But many seem just tempting enough to explore. Add to the mix that people are increasingly becoming unemployed, under employed or worried about employment and you have an environment ripe for exploitation.

You'd think after this whole mortgage meltdown that we as humans would have learned our lessons - on both sides of moral coin. Predatory companies will always exist, though, so it's likely always going to be a matter of buyer beware. As consumers and potential investors in these "make your own financial future" schemes, we have to keep a level (read: skeptical) head.

Here are some questions to ask before you start thinking these get-rich schemes might be worth some of your time and your hard earned dollars (as they almost all require an investment of YOUR money....).

1. If this is such a big get rich scheme, why isn't everyone rich?
2. If it's so easy to make $6K a week working from home, why aren't we all working from home?
3. If this is such a big profitable idea, why are they reaching out to random people via anonymous job postings or Internet/tv ads?

And here's perhaps the most important question to ask yourself:
In a slow economy, would people actually buy MORE of this stuff?

Granted, even in a slow economy people have to purchase goods and services, but their behavior is constrictive not exapansive. What that means to you as a would-be entrepreneur is that you're going to have an even tougher time getting in front of your target consumer and grabbing their attention.

When people feel financially secure, they are open to new things including your would-be product or service. When people feel financially unstable, they are more likely to stick to what they know. The one real exception to this might be if you offer something that is of better value or lower price - but you still have to get in front of your consumer and that takes times and...well...money and I'm guessing most of these opportunities are going to require that money come out of your bank account not theirs.

So, if you want to start your own company, stay focused on what the economy is doing and how that impacts your target market. Some of these "become an entrepreneur" ads might be legitimate opportunities, but most of them will just suck the money out of your account and into theirs.

Starting and running a successful business is rarely something that becomes profitable overnight or even in the short-term - it's usually a longer, slower process. That's a very healthy model for success, but it doesn't solve the short term problem of the newly unemployed - the "I need an income today" crowd. The vast majority of entrepreneurial opportunities that involve a quick return on investment usually involve 3 card Monte.

If you need an income or a job now, don't waste your hard earned savings on these schemes. Look for work, use the skills and talents you have and find people who are willing to pay for those products or services in your own town. You're more likely to find opportunities to earn a living by interatcting with people in your home town than you are by buying some flimsy scheme you heard about on tv at 1am when you were so worried about your future you couldn't sleep.

So be extra careful out there, the waters are shark infested right now.