As an entrepreneur, you are inventive and energetic, capitalizing on a solid business plan and an opening in a particular industry or field. As an entrepreneur, you are also vulnerable. Investment fraud is a very real possibility that every entrepreneur must face. There are fraudulent people, posing as legitimate investors, and they often prey on an entrepreneur’s fund-raising efforts. This is a time when you’re most vulnerable, and it doesn’t matter what site you’re on, someone is willing to prey on you.

But small and start up businesses still require funding. Without help from private investors and venture capital firms, it can be very difficult for an entrepreneur to get his or her business plan off the ground. So how can you be sure the investor you are dealing with is all he or she claims to be?

The following tips serve as a guide for entrepreneurs and small business owners to help them make smart business investments. Keep in mind; these tips are merely guides to help reveal potential danger. (more…)

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