Snake oil for sale
By Theo Derleth | Jun 28, 2008 | Weekly Columns | Keys Culture |
We teach our children, when at home always err on the side of caution. Never open your door to strangers without first verifying who they are. Knowledge, we are endowed with at an early age. Similar information should be taught to business owners. As small business owners we work hard to make a living. We have to be careful on who we trust in the financial product and information arena. There are still a lot of snake oil salesmen prying on the small business owner.
Last week my wife answered our business phone, the caller identified himself as an employee of the yellow pages and wanted to verify our listing information. My wife said fine, go ahead. After asking whom he was speaking with, she answered, and then he asked, “your address?” She responded, “Don’t you have that on your computer screen?” His response, “um – no.”
“Then you are not verifying my information are you? You’re trying to collect it,” she said. “Obviously you’re not our Yellow Page representative. Please don’t call again.”
Even though we are registered on the Do Not Call Registry, daily we receive free offer calls that try to bait us with a complimentary service only to switch us to a paid service. Sorry, I lived in Las Vegas for a long time and have heard the best rehearsed scams, no thanks, not interested.
During our recent Rotary Installation Dinner for I was seated next to All Keys Diesel Repair, Inc owner Neil Gonzalez. He was excited on how well his business was doing, from one employee to eleven in just a couple of years. Neil went on to say that he had recently been contacted by a large consulting company from Illinois and they offered to do a free business analysis and consultation.
My antennae immediately went up. A couple of months ago a man who read one of my columns about business asked me if there was a need for business consulting in the Keys. He said he worked for a large conglomerate that specialized in consulting, buying and selling businesses and suggested I visit his web site. When I ‘Googled’ his name a host of other sites with allegations against his company as well as pending lawsuits appeared.
I’m all about bringing new businesses to the Keys, but ethics are essential. I told him of my findings and that yes we have a need for business consultants but prefer companies who will care about our community. I mentioned this to Neil and suggested he do some background research on the company propositioning his shop. One of my advertising clients owns a Keys-based consulting company and he said, “Oh man, the Herald published an article last year, at the end of November, and there were serious allegations against this company.”
Last Monday three consultants showed up at All Keys Diesel Repair. (Not one – three.) Neil confirms he is under no financial obligation and that there is no charge for their analysis and consultation. After being assured there wasn’t, he was asked to try out their plan for a few months and if he saw a noticeable improvement in his business he would agree to sign with them.
A couple of days later and after what appeared to be a thorough analysis they immediately asked for three post-dated checks totaling $10,000.
“It keeps business owners more motivated to follow the plan,” they told him.
“I’m already motivated, I have a wife, children and mortgages to pay,” Neil said. “You should have disclosed that you needed money ‘up front’ before we started.”
They gave him a cash spreadsheet to show how the money would be available and if it wasn’t – “trust us, we won’t cash them”. They wanted the checks dated for July 4, 7 and 11, that’s less than three weeks from when the consultation took place. He thanked them for their time and sent them on their way – without the $10,000. Neil told me he likes the idea of a business consultant, but plans to stay with a local company who has a vested interest in the community. Fact is, you know they will do their best for you. (It’s a lot harder to hide in a small town and you know you’re going to run into each other in Publix, at the beach or in a restaurant.)
There is a need for business consultants, lawyers, CPA’s, financial planners, advertising agencies and public relations people. They are professionals who dedicate time in their respective fields so you don’t have to. Don’t be afraid to ask for help and it’s usually best to ask before you need it.
Unfortunately the Internet collects a great deal of information from the media and we all know news sources focus mainly on the negative and so that’s what’s printed. Not often enough are good things printed in the paper. So remember that when researching a company and equate it into your final decision. Ask for character references and trust your instincts.
Dream the life you live and live the life you dream.
Theo Derleth is a motivational speaker, writer, and competitive ballroom dance teacher. He resides in Marathon with his lovely wife, Ganine and together they own Theo & Ganine’s Dance Center. You can reach this columnist at .(JavaScript must be enabled to view this email address).
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