Dear Karen: I want to start a home business for extra income, but I wonder whether online offers are legitimate. How can I tell?
Answer: The Internet has extended the reach of scam artists targeting individuals looking for supplemental income. Would-be entrepreneurs should do extensive research on any business opportunity -- online or off -- particularly those that offer "easy money" with little education, training or investment needed.
Internet auction frauds are particularly common.
"You'll find sites that say you can make $10,000 a month selling on EBay, and all you have to do is send $500 upfront to get a start-up kit or membership in a buying club. Either the inventory is junk, nonexistent or everyone else is already selling it," said Michael Camodeca, president of Chicago-based SkyView Technology Inc.
Be skeptical about any website business offers, no matter how professional they look, and vet them thoroughly, Camodeca said. A real company will have working telephone numbers and e-mail addresses.
Don't submit financial information, such as Social Security or bank account numbers. Don't purchase anything unless the site has a VeriSign encryption logo and starts with "https," signifying a secure connection. It's also better to use a credit card, which is insured for fraud losses, than a debit card, Camodeca said.
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Find partner with matching skills
Dear Karen: I'm getting ready to open a pet-care business and would love a partner. Is there a rule of thumb for choosing someone?
Answer: Look for a partner whose skills complement yours, said Lysa Stewart, a management psychologist at RHR International. Approach an interview with a potential partner as a test, not a conversation, she said, and always consult an attorney.
Assess a potential partner's skills by asking questions following the "CAR" model: the context, the individual's actions and the result.
"Ask questions like, 'Tell me about a time when you were unsuccessful in meeting a goal. What did you do to resolve it? What were the results?' These kinds of questions will get at the heart of the individual's behavior," Stewart said.
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Shred unneeded sensitive data
Dear Karen: I worry about the information my company discards. Should we be shredding or recycling all of our trash?
