5 Little Known Business Crimes and Scams

5 Little Known Business Crimes and Scams
Nokia Windows Tablet Could Launch By November
5 Benefits of Having a Small Business Mentor
LinkedIn Turns Smartphone Into Recruiting Tool
Using Economics to Set Your Prices

Posted: 21 Oct 2013 04:00 PM PDT

business crimes

If you read the news, you're familiar with the term "white-collar crime," which describes crimes committed for illegal monetary gain. White-collar crimes usually occur in the business world and involve respectable, powerful people. Most likely, you've heard of business crimes like fraud, bribery, embezzlement or money laundering. Common business scams include Ponzi, Pyramid, and West African Investment schemes.

The most prominent white-collar business crimes in recent years have been the Bernie Madoff case and the Enron case. In 2009, Madoff was sentenced to 150 years in prison for perpetrating a Ponzi scheme that resulted in thousands of investor-victims losing billions of dollars.

In 2001, Houston-based company Enron committed a series of business crimes that would eventually lead to what would become the most complex white-collar crime investigation in the FBI's history. Enron's top officials cheated investors through complex accounting gimmicks until the company declared bankruptcy in 2001 and investors lost millions.

However, there are business crimes or varieties of business schemes that are less known and don't necessarily only occur in the corporate world. In fact, some of these less prominent offenses could affect regular individuals – like you.

Business Crimes and Scams

Environmental Schemes

Environmental schemes involve fraudulent practices by individuals, corporations, organizations or even governments, which concern the protection or management of the environment. These parties usually participate in schemes in order to circumvent paying for environmental measures.

A recent example is carbon credit fraud (PDF), which includes under reporting of carbon emission and bogus carbon offset schemes. According to Interpol, the carbon market is attractive to criminal gangs and these schemes can be worth billions.

Kickback

A kickback is a type of bribery which is negotiated between two parties. In a kickback, one person accepts to be paid for a service on a quid pro quo basis. Normally, the remuneration (money, goods or services) is discussed ahead of time. Moreover, it is implied that the two parties are cooperating, rather than one party extorting the bribe from the other.

Recently, the executive director of one of New York City's most reputable social services organizations, William E. Rapfogel, was believed to be taking large kickbacks from an insurance broker.

Telemarketing Fraud

Telemarketing fraud in general is comprised of fraudulent selling over the phone. Common telemarketing frauds include advance fee fraud, securities fraud/boiler rooms, charity fraud or confidence games.

A rising form of telemarketing fraud is timeshare fraud. Timeshare owners are called "cold" to see if they are looking to sell, telling them a buyer has been found, and asking them to send some upfront cash, which they never see again.

To avoid becoming a victim of telemarketing fraud, always ask a caller who tries to sell you something for their contact information and verify them online via websites like InstantCheckmate.

Pigeon Drop

A pigeon drop is a confidence trick in which a "mark" or "pigeon" is persuaded to give up a sum of money to receive a larger amount of money. However, once the pigeon hands over the money, the scammer will take off and the pigeon is left with nothing.

Such a scam recently occurred in Brooklyn, NY where a woman lost $66,000 to two con women. They approached the victim with a bag of money, which they claimed they found and offered to share it for an advance fee. The woman agreed and handed over $50,000 in jewels and $16,000 in cash.

You should take note that these con artists are usually well-dressed and target elderly people.

Jury Duty Fraud

Jury duty fraud consists of scammers calling people, identifying themselves as an officer of the court. The scammer will say that the scam victim failed to report for jury duty and that a warrant is out for their arrest. If the victim replies that they never received such a note, the scammer will ask for some information for "verification purposes," like birth date, social security number or even a credit card number.

This type of scam has been increasing in the last years and communities all over the country have issued public warnings regarding these calls. To protect yourself, keep in mind that actual court officers never ask for confidential information over the phone, and hang up immediately.

Even though we typically associate the term "white-collar crime" with big corporations or governments, there are business crimes that can affect you as an average individual.

Considering how much of our personal information is available and how elaborate these business crimes and scams have become these days, it is crucial to be extra vigilant.

Crime Concept Photo via Shutterstock

The post 5 Little Known Business Crimes and Scams appeared first on Small Business Trends.

Nokia Windows Tablet Could Launch By November

Posted: 21 Oct 2013 01:30 PM PDT

new windows tablet

For Small business owners seeking a Windows tablet at a bargain price to go with the rest of their Windows machines in the office, there could be good news. Rumor has been swirling for sometime about Nokia planning to launch a new Windows tablet.

Now it seems the rumor may be true.

New Windows Tablet by Nokia Should Retail at $499

A 10.1-inch Nokia Windows tablet running Windows RT 8.1 could go on sale in the U.S. to Verizon customers by the third week in November at a cost of $499, Windows Phone Central reports.

If true, the new Windows tablet would cost only a bit more than the starting price of the new Microsoft Surface 2 but with a slightly smaller screen. The Microsoft Surface 2, successor to Microsoft’s Surface RT, starts at $449 and will be available Oct. 22.

However, the new Nokia device from Verizon will be available with 4G LTE high speed wireless which will not be available on either of the new Microsoft Surface devices at least until 2014, Windows Phone Central Reports. So if high speed wireless data transfer is a big issue in the tablet you use, this could be a big consideration.

Other Features

Reports also suggest the new tablet will feature a 1920 x 1080 resolution IPS display, a 6.7 megapixel camera and will weigh in at 1.3 pounds. The device is expected to be sold through the Microsoft Store.

Other details are a bit foggy, but don’t worry. Nokia, which Microsoft announced it would acquire earlier this year, is expected to unveil the new device officially at its Nokia World event in Abu Dhabi Oct. 22. Yep, that’s the same date the new Microsoft Surface 2 and Surface Pro 2 go on sale in store, so stay tuned.

Unveiling Photo via Shutterstock

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5 Benefits of Having a Small Business Mentor

Posted: 21 Oct 2013 11:00 AM PDT

business mentor benefits

As a small business owner or entrepreneur, you have a lot on your plate. And whether you're busy trying to establish your business or developing a growth strategy for your existing operation, it can be valuable to get an expert opinion from a mentor.

Below are some key reasons you should consider reaching out to a mentor.

Business Mentor Benefits

1. Expert Advice

Above all, business mentors have "been there, done that." They can offer you expert advice and guidance based on actual experiences — successes and failures included.

The insight that business mentors can provide because of what they've been through with their business ventures, and over time, is tremendously valuable from a practical standpoint.

2. A Different Perspective

Consulting with a business mentor can be a great way to gain a different, fresh perspective. It's easy to get caught up with your ideas to the point of questioning, confusion or second guessing – and having a sounding board in a business mentor is a great way to work through some of those kinks.

You may also be presented with some considerations from a business mentor that you wouldn't have come across otherwise. So it's a great opportunity to broaden your own outlook.

3. Networking

With all that experience likely comes a vast network of industry connections. Your mentor can help open doors so you can meet people – potential partners, customers and decision-makers in your target market.

Having an introduction from someone like your business mentor can help strengthen that new tie more than simply meeting someone randomly at an event.

4. Skill Development

If you find that you're struggling with a particular task in your start-up activities or are facing an issue with employees, bookkeeping, etc. in your existing business – a mentor can help.

Many business mentors have a particular area of advanced skills, so you can further your technical abilities while you gather bigger-picture insight.

5. Low Risk

Through many organizations and programs (such as SCORE), consulting with a mentor is usually free, so you don't have to worry about fronting cash to benefit. You also don't need to be concerned with scams, because business mentors are available for one primary reason – to help you succeed.

But it's a two-way street. Business mentors learn from mentees as well, so the experience is mutually beneficial.

If you're just getting started down the path to business ownership – or have been there for some time – and are looking for some guidance, consider reaching out to a business mentor to help you along the way.

You've got nothing to lose – and a world of business insight to gain.

Mentor Photo via Shutterstock

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LinkedIn Turns Smartphone Into Recruiting Tool

Posted: 21 Oct 2013 08:00 AM PDT

linkedin recruiter

Search for that ideal job candidate. Contact him or her quickly for a screening interview. Then make notes on the candidate’s profile. And do all of this from your smartphone inside a single app all in minutes on the way to the office.

Sound too good to be true? It may not be.

LinkedIn, the professional social network, says it is streamlining the recruitment process with a new app called Recruiter Mobile.

In a recent post on the LinkedIn Talent Blog, Parker Barrile, Senior Director of Product at LinkedIn explains:

People are more mobile than ever before. Yet recruiters like you, and the recruiting process, are still chained to the desktop. That has made it painstakingly difficult for candidates to search for, discover and apply for jobs via mobile. It has also limited your productivity because you can't interact with candidates and hiring managers while on the go.

Introducing LinkedIn Recruiter Mobile

The idea is pretty simple.

LinkedIn says the app makes it easy to browse the site’s 238 million members with your job criteria. You can read their profiles and even get hiring manager feedback on the candidates you’re interested in.

Then message members through LinkedIn and take followup notes on the candidate’s profile for review later or to forward to your HR department or hiring manager.

Here’s a simple overview of the app in action.

Users without an iPhone can access the app on other devices from LinkedIn. But, in either case, you will need to have a premium LinkedIn Recruiter account to use the app.

Image: LinkedIn

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Using Economics to Set Your Prices

Posted: 21 Oct 2013 05:00 AM PDT

price elasticity

How much should you charge?

That's an important strategic question. But rather than carefully analyzing the answer, many small business owners just "wing it." As a result, their prices end up too low or too high to maximize their revenue. Knowing just a little micro economics can help small business owners figure out the "right" price for their products and services.

Charging the highest or lowest price in the market isn't always the best approach. A business's revenue – as you know doubt know – is the product the price charged for a product multiplied by the quantity sold.

Charge a high price and you might sell too few units to bring in the highest possible revenue. Charge a low price and you might not sell enough units to maximize your sales dollars.

Price Elasticity

This is where knowing a little micro-economics can help. Whether you are better off charging a high price or a low price depends on the price elasticity of demand for your product.

Although the term “price elasticity" makes some readers eyes glaze over and gives others frightening flashbacks of college classes, the concept is pretty straightforward. It's just economist-speak for what normal people would call price sensitivity – a measure of how much more of your product customers want when the price goes down or how much less they demand when the price rises.

If you want to maximize your revenues, you need to know the price elasticity of demand for your products. When demand for your product is "price elastic," customers' willingness to buy is very sensitive to the price you charge. Edge up your price just a little, and demand drops a lot. In this case, raising your price will cause your total revenues to fall.

Although you will generate more revenue per unit by charging more, the number of units you sell will fall by more than your revenue per unit rises.

By contrast, when your customers' demand for your product is "price inelastic," the quantity they are willing to buy isn't very sensitive to price. While the number of units you sell might fall in response to the price increase, that decline will be less than the boost in revenues you get from charging more per unit.

Is Customers' Demand for Your Product Price Elastic or Inelastic?

Think about a couple of basic characteristics of your product or service:

First, Does the Product Have a Lot of Close Substitutes?

If you are selling something with a lot of close substitutes – brownies if you sell cookies, for example – demand tends to be pretty elastic. Raise your prices only a little and the customers you affectionately call cookie monsters will switch to the substitute source of a sugar high, leaving you with less revenue than when your price was lower.

Second, is Your Product a Luxury or a Necessity?

If you are selling a necessity (like a prescription drug), prices tend to be pretty inelastic. People can't easily do without necessities so the cost has to rise a lot before people will go without their purchases. That's different than luxuries (like high-end restaurant meals). People might readily do without those if prices rise.

Third, How Differentiated is Your Product?

If your customers think you have a great brand or other characteristics that differentiate your product from those of competitors, then their demand for your product won't be very price sensitive. Consider Apple, for example. People aren't so quick to buy a competitor's smart phone in place of an iPhone when iPhone prices rise.

Fourth, Who Pays for Your Product?

When users pay personally, as in the case of vacation travelers, demand for hotel rooms tends to be elastic. Raise prices just a little and your customers are suddenly looking to pitch a tent in a campground. But when those same users are travelling on a corporate expense account, they hardly flinch when you boost the price of the rooms at your hotel.

Understanding price elasticity of demand is important for small business owners. Knowing your customers' price sensitivity will help you to set a price that maximizes your total revenue.

Stretch Dollar Photo via Shutterstock

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Tuesday, October 22, 2013