Most entrepreneurs are looking for investors so that their venture can be suitably capitalized. The current economic climate has made it even harder to find investors for many people and con artists love to take advantage of such situations.
Be very wary of unsolicited emails from gmail, yahoo, hotmail or other such public addresses that claim to be a specific person and are interested in investing in your venture. Believe it or not, there are people who fall for such scams, especially when they feel that they are in a desperate situation.
Someone recently filled out our contact form purporting to be the Chairman of a company based in Dubai and interested in investing. The name used is that of a real person and the company website is real as well but there were a couple red flags.
Here is the exact email:
name: Sheikh Hasher Maktoum Al Maktoum
phone: +971-4-3199330
email: hasheralmaktoum@gmail.com
comment: Greetings .
Related to your advert about funding needed, I humbly bring to your notice my willingness to partner with you on this great business opportunity.
I am Mr. Sheikh Hasher Maktoum Al Maktoum the Chairman of AL Fajer Group a member of Dubai International Finance Holdings. I am running a family business, I wish to continue all communications with you via this email address, as I intend to make an anonymous investment in this your offer, provided you can guarantee the security of my investment capital in your company.
You may update me with full business details and proposal for a Joint Venture partnership with you. I am looking forward for a good working relationship with your Company.
May the peace and Blessings of Almighty God be with you .
Your sincerely,
Sheikh Hasher Maktoum Al Maktoum
AL Fajer Group" PO Box 1600 Dubai, UAE
Tel: +971-4-3199330
Fax: +971-4-3199331
hasheralmaktoum@gmail.com
http://www.alfajer.com
Some Red Flags
1. We currently have no advertisements on the web about needing funding.
2. This person preferred to use a gmail address for all communications.
3. "Dubai International Finance Holdings" does not exist
4. You don't put "Mr." in front of "Sheikh" (the real person actually has "His Highness" before "Sheikh")
5. The email went from an "investment" and to a "Joint Venture partnership"
I was tempted to reply and be like an investigative reporter uncovering a scam but a search on the web found that others had already done this in December 2008. You can read the entire exchange for yourself here.
As expected, it is a version of the famous Nigerian advanced-fee scam where they claim they need to transfer some money but you end up having to pay some fee to collect (there is also a Western Union version where they claim to send a check that you must cash, keep your portion and send them the rest but then a few days later the check bounces and you already sent the cash).
In this scam, the "investor" puts you on to their "Foreign Investment Advisor" in London, require you to come to London to sign the paperwork and pay them GBP 7,100 (about US$12,000). There also seem to be variations on the amount to be paid upfront to receive the investment.
This scam seems to have only recently started. Be on the lookout for more scams as there are bound to be more popping up in this economic environment.
Lijit Search
Tuesday, February 3, 2009
Friday, January 9, 2009
Using Realvibez To Support Caribbean Culture
In the past, we made the mistake of jumping at every opportunity that remotely related to our overall ambitions, to our detriment.
This time around we have been more meticulous while avoiding too narrow a focus. Realvibez is an "integrated media and entertainment firm focused on Caribbean culture" with the basic goal of helping content owners generate revenue. "Content owners" for us includes film, television, literature, music and more.
Our expertise lies in leveraging the web for marketing, promotion and sales, with the added benefit of being able to promote via Realvibez. That lead to us being approached to handle distribution for some titles from established people.
First was the Michael Manley DVD, his last on-camera interview, and now we are working with renowned author, Easton Lee, on selling his latest work, Run big 'fraid which has been praised by the Jamaican press and especially Barbara Gloudon (see Jamaica Gleaner article).
We always knew that we would eventually be able to grow beyond music. The goal was always to cultivate an audience interested in Caribbean culture and then be able to market multiple products to them in a way that would benefit Caribbean culture. While many things remain challenging, I have to admit that I am happy that we are making progress on this front and can't wait to secure more titles and help more content owners generate meaningful revenue.
This time around we have been more meticulous while avoiding too narrow a focus. Realvibez is an "integrated media and entertainment firm focused on Caribbean culture" with the basic goal of helping content owners generate revenue. "Content owners" for us includes film, television, literature, music and more.
Our expertise lies in leveraging the web for marketing, promotion and sales, with the added benefit of being able to promote via Realvibez. That lead to us being approached to handle distribution for some titles from established people.
First was the Michael Manley DVD, his last on-camera interview, and now we are working with renowned author, Easton Lee, on selling his latest work, Run big 'fraid which has been praised by the Jamaican press and especially Barbara Gloudon (see Jamaica Gleaner article).
We always knew that we would eventually be able to grow beyond music. The goal was always to cultivate an audience interested in Caribbean culture and then be able to market multiple products to them in a way that would benefit Caribbean culture. While many things remain challenging, I have to admit that I am happy that we are making progress on this front and can't wait to secure more titles and help more content owners generate meaningful revenue.
Monday, December 29, 2008
Dealing With Disappointment
Most entrepreneurs learn to deal with failure - it is something that is expected and usually used as motivation to keep going.
Disappointment sometimes accompanies failure but it can be very different too. There is a big difference between the disappointment you feel when you fail, knowing there was a 50/50 chance and the disappointment you feel when you thought you had a 100% chance of success.
We recently had to deal with that and still find it hard to get over it. When you think you have a deal sealed, especially one that is the most significant revenue opportunity in years, both because of the revenue it will generate directly and the impression it will make on potential investors, then it falls through at the last possible minute - you tend to be extremely disappointed.
It only gets worse when it was not your fault and the lack of that revenue causes a cash crunch.
One way to deal with it is to chalk it up to experience and learn from it. I guarantee you that doing this alone does not deal with the disappointment totally though. Some of it lingers and surfaces from time to time. So far I have found that focusing on the reason we started the venture in the first place helps to remove the doubt that the disappointment fosters but I have yet to figure out how to totally erase that disappointment and get some closure.
Maybe you are not supposed to get over it - it is a battle scar that will serve as a lasting reminder of the battles you have faced as an entrepreneur.
Disappointment sometimes accompanies failure but it can be very different too. There is a big difference between the disappointment you feel when you fail, knowing there was a 50/50 chance and the disappointment you feel when you thought you had a 100% chance of success.
We recently had to deal with that and still find it hard to get over it. When you think you have a deal sealed, especially one that is the most significant revenue opportunity in years, both because of the revenue it will generate directly and the impression it will make on potential investors, then it falls through at the last possible minute - you tend to be extremely disappointed.
It only gets worse when it was not your fault and the lack of that revenue causes a cash crunch.
One way to deal with it is to chalk it up to experience and learn from it. I guarantee you that doing this alone does not deal with the disappointment totally though. Some of it lingers and surfaces from time to time. So far I have found that focusing on the reason we started the venture in the first place helps to remove the doubt that the disappointment fosters but I have yet to figure out how to totally erase that disappointment and get some closure.
Maybe you are not supposed to get over it - it is a battle scar that will serve as a lasting reminder of the battles you have faced as an entrepreneur.
Saturday, December 20, 2008
Free Resource: Payroll For Dummies
Most entrepreneurs are always looking for deals and ways to reduce how much cash they have to pay out. They also want to make sure that they are following all the rules.
Inc. Magazine recently posted about a free copy of Payroll For Dummies from WIley Publishing. Sign up today to get your copy in a few weeks, it certainly can't hurt to get a free, valuable resource.
To request the book, go here.
Inc. Magazine recently posted about a free copy of Payroll For Dummies from WIley Publishing. Sign up today to get your copy in a few weeks, it certainly can't hurt to get a free, valuable resource.
To request the book, go here.
Thursday, December 11, 2008
13 Questions with David Mullings (Jamaica Observer Chat!)
The Jamaica Observer Chat! (their entertainment tabloid) featured my answers to 13 questions on Wednesday, December 10. Check out the questions and answers below. My personal favourite is number 4.
1. Complete the following: I am a....
person working to be a positive role model for young people,
especially young males in Jamaica.
2. Who has been your inspiration?
I draw inspiration from many people, including my parents, Warren
Buffett, Bill Gates, Steve Jobs, Richard Branson and Bob Marley.
3. Tell us one thing about yourself that people would be surprised to know..
I minored in Religion in college and read a verse from the Tao Te
Ching every night.
4. How would you spend $25M?
I would pay down all high interest debt in my family, invest in
Realvibez Media and then launch a startup incubator like Y-Combinator
in partnership with the PSOJ, find 10 people in Jamaica who need
funding, then provide a grant of at least $500,000 each if they enroll
in our free 6-month program to help get their business off the ground,
providing access to lawyers, accountants and advisors.
5. Looking back, is there anything you would do differently?
No, everything happens for a reason and each of our mistakes and
failures has made us smarter and stronger. Things happen for a reason,
we just don't understand that reason until later in life.
6. Describe your perfect date.
My perfect date would be a late dinner on a secluded beach, followed
by a dessert picnic style, a massage for both of us and then a
late-night swim all alone.
7. What's your favorite comic strip/cartoon character?
I am a big anime fan so I am a fan of Naruto. I have been watching
long before it came to the USA and I like his attitude of never giving
up, even when he fails. That is the most important trait of an
entrepreneur.
8. Do you plan to get married?
I have been happily married since May 2007.
9. What's the best thing you have ever done for somebody without being asked?
Introduced them to a potential sponsor for their venture
10. Cornmeal pudding or black forest cake?
Black Forest Cake
11. What gets under your skin?
People who choose to stay ignorant
12. How do you relieve stress?
Play videogames with my wife
13. Which family member is likely to call you at 2:00 am?
My brother Robert. He would be returning my phone call to discuss my
crazy idea that just popped into my head.
Wednesday, December 3, 2008
Elements Of Sustainable Companies (Sequoia Capital)
Sequoia Capital, the famous venture capital firm that has funded companies like Cisco, Electronic Arts, Google, PayPal has this list as required reading before submitting a business plan to them (found here).
I believe that their track record proves that every entrepreneur should take this list seriously and build a business with the following in mind. VCs tend to look for specific types of companies and not everyone tries to build those specific types but the basic principles hold true for any venture that you are launching or already have.
"Start-ups with these characteristics often foretells the success of a business and the likelihood of it becoming an enduring company with a sustainable business plan."
CLARITY OF PURPOSE
Summarize the company's business on the back of a business card.
LARGE MARKETS
Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.
RICH CUSTOMERS
Target customers who will move fast and pay a premium for a unique offering.
FOCUS
Customers will only buy a simple product with a singular value proposition.
PAIN KILLERS
Pick the one thing that is of burning importance to the customer then delight them with a compelling solution.
THINK DIFFERENTLY
Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.
TEAM DNA
A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. "A" level founders attract an "A" level team.
AGILITY
Stealth and speed will usually help beat-out large companies.
FRUGALITY
Focus spending on what's critical. Spend only on the priorities and maximize profitability.
INFERNO
Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower.
I believe that their track record proves that every entrepreneur should take this list seriously and build a business with the following in mind. VCs tend to look for specific types of companies and not everyone tries to build those specific types but the basic principles hold true for any venture that you are launching or already have.
"Start-ups with these characteristics often foretells the success of a business and the likelihood of it becoming an enduring company with a sustainable business plan."
CLARITY OF PURPOSE
Summarize the company's business on the back of a business card.
LARGE MARKETS
Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.
RICH CUSTOMERS
Target customers who will move fast and pay a premium for a unique offering.
FOCUS
Customers will only buy a simple product with a singular value proposition.
PAIN KILLERS
Pick the one thing that is of burning importance to the customer then delight them with a compelling solution.
THINK DIFFERENTLY
Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.
TEAM DNA
A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. "A" level founders attract an "A" level team.
AGILITY
Stealth and speed will usually help beat-out large companies.
FRUGALITY
Focus spending on what's critical. Spend only on the priorities and maximize profitability.
INFERNO
Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower.
Monday, December 1, 2008
How You Define Your Business Matters
Most people define their business venture very narrowly and that limits the growth options or strategic partnerships in the future. Realvibez is usually seen as just a website, an Internet venture, so we take pleasure in explaining the whole plan to people and seeing the change in how they think of our venture.
The New York Times recently carried an article article about CNN's move into wire service and the plan to compete with the Associated Press (A.P.) that so many newspapers and even CNN itself has been using. The wire service will also compete with Bloomberg News and Thomson Reuters.
The President of CNN Worldwide, Jim Walton, does not define his business narrowly:
Notice that he did not define his business as just a 24 hour cable news channel, even though that is what it started out as. CNN has expanded into many areas because they see themselves as a "content company" and content can be used on multiple platforms.
Defining your venture solely by what it does could be narrowing your opportunities and blinding you to new revenue streams. Define your venture based on what it creates or does for people that is of value and you unlock new opportunities.
The New York Times recently carried an article article about CNN's move into wire service and the plan to compete with the Associated Press (A.P.) that so many newspapers and even CNN itself has been using. The wire service will also compete with Bloomberg News and Thomson Reuters.
The President of CNN Worldwide, Jim Walton, does not define his business narrowly:
“Look at the history of CNN,” Mr. Walton said. “We launched as one network in 1980. Today CNN is more than just one network. We have a huge radio business. A huge online business. We’re about content.”
Notice that he did not define his business as just a 24 hour cable news channel, even though that is what it started out as. CNN has expanded into many areas because they see themselves as a "content company" and content can be used on multiple platforms.
Defining your venture solely by what it does could be narrowing your opportunities and blinding you to new revenue streams. Define your venture based on what it creates or does for people that is of value and you unlock new opportunities.
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