The vending machine business is a multi-billion dollar industry where the opportunity for fraud abounds. Fraudulent businesses, run by smooth talking con artists, sell vending machine business opportunities with claims of highly exaggerated income potential to the unsuspecting and uninitiated entrepreneur. Not only do the entrepreneurs fail to realize the promised income but they also risk losing substantial portions of their investments in the process.
Not all vending opportunities are fraudulent and not all involved in the promotion of vending businesses are operating a scam. However, for those who are, the Federal Trade Commission (FTC) has been actively involved in investigating complaints against deceptive and dishonest vending business promoters. The FTC has charged some companies with misrepresenting the earnings potential; misrepresenting the ease and speed to which machines can be delivered, maintained, located and repaired; providing phony references and failing to provide key pre-investment information required by the FTC’s Trade Regulation on Franchise and Business Opportunity Ventures.
If you’re thinking about investing in a vending machine business opportunity, check the reputation of the business by requesting a list of previous investors as well as their addresses and phone numbers. If possible, visit a few of the investors on the list at the locations provided by the vending promoter. Do not just depend on acquiring this information by telephone as the person you talk to could very well be in cahoots with the promoter. You can also check on the reputation of the seller/promoter by contacting the offices of the Attorney General and the Better Business Bureau where the business is located and where you live to see if there are any unresolved complaints on file. Keep in mind, however, that the absence of unresolved complaints could simply mean that the promoter may be operating under a new business name and even under a new personal name.
If the seller makes earnings claims, ensure that written substantiation be provided. If the seller/promoter recommends a locator, ask for a copy of the market survey in your area. If you are contemplating buying an existing vending route, talk with the owner of the route and make it a point to accompany him or her on the route so that you can check the condition of the machines and observe first hand the amount of revenue generated. Also, talk with the people at the establishment where the machines are located or will be located to determine how many people will use the machine and what they might like to see in the machines as well as any complaints or concerns they might have about the machines already there or machines that will be placed there.
Finally, before signing any agreement or paying any upfront money, consult an attorney, an accountant or a trusted financial advisor for another opinion as to the efficacy of the business proposition. If the promoter/seller requires a deposit, an attorney can review the contract and establish an escrow account where your money can be maintained by a neutral third party. If the seller/promoter has problems with the arrangement, then it might be best to walk away rather than risk losing your hard earned cash.
By: Daniel Lambert
Posts Tagged ‘Entrepreneur’
Vending Machine Business – Avoid Being Scammed
March 16th, 2010Give Your Company a Perfect Business Proposal
March 10th, 2010
A business Proposal is an essential document which helps an entrepreneur in the business promotion. It can be used as an effective and powerful marketing tool. As the name suggests, this is an offer letter which contains a proposal for the client.
This proposal is made by the seller or an entrepreneur of the organization. The proposals are either requested by the buyer or sent by the seller who takes an initiative for proposing business to the buyer. It is different from a business plan in which a marketer lays down a complete financial plan. This plan is sent to the financial institutions for funding the company for the beginning of the operations.
It is a tedious task of creating a proposal on different subjects with an aim to sell different types of goods and services. There are some basics which a marketer can keep in mind while writing an offer letter to the customer. If the customer has sent ‘Request for Proposal’, then you can treat the request as an outline for drafting an offer letter. A request keeps the mind of the marketer focused on main points demanded by the customer.
If you are taking an initiative to send an offer letter to the client then you have to dig into the requirements of your prospective buyer. An author should write a business proposal in a simple and plain language. On addressing a foreign client you should be very careful of the tone and words of your language. The best is to use a formal expression while writing an offer letter to a foreign client. You can also research the needs of your client. You should solve the basic purpose of addressing the needs of the client. A person should introduce the company’s goods as a key to the customer’s problems. It is beneficial to give a thorough knowledge of company’s origin, certification, award and achievement. Lastly, you can mention about your delivery process, terms and conditions.
Make the presentation and formatting of the proposal lucid and perfect. With these basic points in mind, you can persuade the customers to choose you among your competitors. This can help you drawing maximum revenue for the company.
By: Lara Hopkins
Small Business Government Grants
March 4th, 2010
America is built on the ability for individuals to build their dreams, and small business government grants make that entirely possible. Since most businesses fail due to a lack of financing, the American economy cannot afford to not make it easy for people to start a business and succeed.
This is why small business government grants are available to everyday people interested in starting their own business. Federal funding offers a chance for someone to build a business and make a difference in our economy.
By helping entrepreneurs succeed, the government knows full well that small business government grants are a good bet. In return, you’ll create jobs, invite competition, offer great services or products, and cause people to spend money. These are all the things that the America was built upon and the things that will help this economy grow.
The process is pretty straight forward. An entrepreneur interested in receiving small business government grants will first search through the electronic database to find programs that fit their needs. With over 3,000 grants to choose from, there is no trouble finding multiple offers that you can qualify for.
Once you’ve identified those offers, simply submit an application and grant proposal by following the guidelines. It might require some effort on your end, but when you receive a check in the mail for $500,000 to help finance your new office, you’ll realize it was time well spent.
Once you submit your application, it will go into a review process, which can take a week or longer. Once approved, a check will be mailed right out to your attention, and you’re free to spend it in accordance to the grant terms. As long as you stick to the terms, you’ll never have to repay the grant money.
By: Austin Warty
