The Sunday Mail
Taurai Changwa Business Forum —
BUDDING businesses normally have an insatiable appetite to maximise on opportunities to make more money and grow, which is a good thing.
However, without any set parameters within which to relate with stakeholders or any standard template to conduct business, small to medium scale businesses, particularly, often fall prey to con man.
Well, con man are often referred to as “confidence men”, swindlers that exploit the confidence of their victim. More often than not, a lot of entrepreneurs have encountered this specie in one way or the other.
It is in times such as these, where the market is tight and cash in hard to come by, that these tricksters become more daring.
And, for small businesses, losing money — even the smallest amount — might make the difference between continuing operations and closing.
Most importantly, businesses have and continue to lose money to unscrupulous fraudsters. So, it might be important to be wary of any business transaction that one makes.
Accordingly, it is always advisable to do thorough background checks before going into a business deal with anyone, including the one that you think you know best.
There is need to be on the lookout for flattery and unrealistic promises. In most instances, if a deal sounds too good to be true, it most certainly isn’t true.
Scepticism can provide a sufficient safeguard to flattery. Flattery is normally a prelude to an unusual or out of the ordinary request.
Experts observe that the psychology of flattery lies in the ability to make oneself puffed up and overconfident. But this is usually a set up meant to soften one to agree more easily to whatever request comes next.
The Bible — often referred to as the book of wisdom — in Proverbs 26:28 says “a flattering mouth works ruin”. As technology progresses, so too do internet scams. In Zimbabwe, however, they mainly target desperate job seekers.
If one is required to pay money to get a job, then it is probably a scam. One is more likely to make a bad decision when they are overconfident.
According to Ryan Healy, a Canadian business strategist author, a person who brags is not necessarily a con man; he could just be insecure.
It’s the type of bragging that matters. Some people brag about how good they are at a specific skill. This is your garden variety braggart, relatively harmless.
Others brag about their good character or how much money they give to their church, poor people, etc. This is your con man variety of braggart.
It is designed to get you to lower your guard … to get you thinking about what a good person it is you are dealing with.
Next thing you know, the con-man lowers the boom, Healy says. Watch out for people who brag about their good character.
Matthew 6:3,4 says “But when you give to the needy, do not let your left hand know what your right hand is doing, so that your giving may be in secret.”
Just to pose a question: How many people do you know who claim to be people who give a lot but you lost money to them one way or another?
As a businessman, there is need for caution whenever business deals are done. Greed breeds moral decay. Quite noticeably, since the country’s hyperinflationary era, sound ethics and integrity are now hard to come by.
Due diligence is now then buzzword in business. A common negotiating tactic for conman is to build neediness in the other party.
For instance, a potential client might tell you that there’s “huge” potential, and that you could make “tens of thousands of dollars.”
He’s building your confidence to the point where you believe this future pay-off will really happen. The next thing he will do is ask you to work for free for an indeterminate amount of time. If you believe the vision he’s painted, you might agree to unreasonable terms, work hard for months… then never see a single cent.
A bird in hand is worth two in the bush; the same principle works very well in business. There is a world of difference between risk taking and stupidity.
As the economy becomes tighter, such incidences might increase. It goes without saying that businessmen, no matter how big and small they are, must be always vigilant and wary.
It is not only about being skilled at one’s line of work, but tact and diligence are some of the key elements to being successful.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an Estate Administrator. He has vast experience on tax, accounting, audit and corporate governance issues. He is the managing director of SAFIC Consultants. He writes in his personal capacity and can be contacted at [email protected] or visit our facebook page SAFIC Consultancy or whatsapp on 0772374784.
