Protecting yourself from "Project Funding" Scams

As a business advisor, my reputation depends on making sure the people and organizations I am connecting my clients with are just as reputable. Early in my career that reputation got a black eye. By not checking out a vendor, prior to engaging him with a client----and, the client got stung. Since then, by always doing a little pre-engagment due-diligence, I've been able to save myself a repeat performance. But, my lesson learned is, always be wary... business services fraud is much more prevelent than you think.

Funding is one of the most critical parts of any entrepreneurial pursuit. Getting a project to that "next level" involves finding the organizations and people who can fund it.  But, before spending a lot of valuable time talking, emailing, sending documents to potential business advisors connected to funders, understand such relationships are fraught with peril.

One of the most common frauds is fee-for-service fund raising. This requires engaging for a fee individuals or organizations connected to the investment industry and providing a service of connecting you with those contacts. They find the funding for your business venture. Unfortunately, too many are incompetent and unable to follow through or outright unscrupulous liers. These engagements will waste your time, effort, and money. It's important to avoid them, but unfortunatly, they can also be hard to detect.

Many such scammers have been industry players in the past. One time at the top of their game, they have somehow fallen from grace. And now, still addicted to the deal, they pretend, continuing to play the game. Ex-players are especially difficult to discern. Because they've been in the business, they know the language; they know industry names; they can cite past successes and often have what appear to be credible testimonials... they're websites glow of success. But, in fact, they aren't able to do what they say and they can even fool seasoned entrepreneurs. But, though determining who's who can be difficult, it's important to try and by performing just a few basic due diligence steps, we can help protect ourselves.

Interestingly, the internet, though an easy platform such insidious people and organizations, also has tools that helps illuminate them for who they are. Here are a few simple cyber-sleuthing techniques and tools I've used to help weed out the baddies. I usually will spend 30-60 minutes on this, sometimes more, depending on what emerges. Even if they turn out to be perfectly legitimate, I am much better equipped knowing more about the person I am about to deal with.

First, review their online profiles such as Linkedin. Look for signs of inconsistency. Does their full career path and history hold tegether? Do they have a number of credible recommendations? If not, its a caution flag? Do they they use their entire name? It's amazing how many use initials or outright alias's. Do they have links to a credible website? Are there success stories or case studies there? Do they have credible discussions on the discussion forums like Linkedin? As you read, questions may begin to emerge. This is often good discerment talking to you.  

Next, do a Google search. Look for signs of positive or negative reputation. If they are reputable, they should turn up in other internet pages and should have some type of positive content to support their legitimacy. One such search I did recently, seemed positive enough, but as I read, I began to think, this sounds a little too good. It turned out my wariness was warranted, though that's content for another post.

Finally, if you do get to the point of contact, does their initial behavior or attitudes speak to their credibility? How is the phone answered? Do they seem to have a due process for qualifying you or are they too soon ready to help, before you've had a chance to establish your own credibility? Do they hesitate to give you a few references who will vouch for them?  Will they give you a reference for a client that didn't work out or there was a reference to determine how it was resolved? If they do, make it a point of checking them all.

These simple steps have helped me avoid some embarrasment and trouble. I recommend you try them. But, even if you do, remember these cunning people. It's still possible to be fooled. Here are a couple of sites that I always check. The Complaints Board and The Ripoff Report

You might be surprised to learn who turns up, but you'll never be sorry.

Richard

 

The Googleist Reformation

Just as Martin Luther's Ninety-Five Theses transformed Christianity, Google's (Nasdaq: GOOG) simple text box is transforming marketing -- from top to bottom.

Since the 1950s, great marketing theorists such as Theodore Levitt and Jerome McCarthy have developed frameworks for companies to create awareness of new needs to be met by novel products. These now-standard methods, such as the four P's of marketing and the five M's of advertising, are based on the assumption that the company controls its marketing message, communication channels and brand.

This is no longer true. Tom Funk's book Web 2.0 and Beyond reports that consumers no longer believe anyone but each other. Studies cited in Funk's book show that consumers assign the highest trustworthiness of 78 percent to recommendations from other consumers; newspapers come in second at 63 percent.

In Google We Trust

In a similar vein, a study of college students last summer reported that search engine rankings mattered much more than a website's layout or even its content. This is consistent with Funk's reports that the customer preference for the organic rank in Google's search was three times more important than its rank as a sponsored listing, with only 50 percent of users even looking at the top sponsored listing.

Google's meteoric rise as the bestower of credibility is emphasized by the 2010 Interbrand analysis that now ranks Google as the fourth most valuable brand, with a brand value of US$44 billion, behind only Coca-Coca, IBM (NYSE: IBM) and Microsoft (Nasdaq: MSFT). More interesting is that in one year, Google's brand increased a whopping 36 percent, whereas the top three leaders all experienced brand value increases of less than 10 percent.

What does this mean? Recall that the Protestant Reformation shifted power from the Pope and priesthood to the lay leadership; empowered with newly available Bibles printed in local languages, members of this group no longer needed the priesthood's interpretation of whether Catholicism met their needs.

Similarly, the Googleist Reformation represents the movement of power from advertising and marketing executives to the lowly customers, who suddenly have access to information generated by other users in the shared dialect of the 140-character Twitter feed. Thus the Google ranking, coupled with customer recommendations, represents today's validation.

Power to the People

Even in the absence of algorithms built to game the system (and Google has recently struggled to minimize this threat), this revolution has tremendous implications. The Protestant Reformation also led to a vast array of church leadership structures, ranging from the similarly organized Anglican Church to the Quaker democracy.

Similarly, expect to see companies develop new marketing hierarchies. The power of the traditional vice president of marketing dictating the message and budget for an advertising campaign will be eroded by grass-roots campaigns (Exhibit A: The Democratic Presidential campaign of 2008).

Every customer will ultimately "vote" for a product by either participating online in recommendations or choosing to defer. We are still in the early phases of the Digital Enlightenment.

However, just as Catholicism survived (and even thrived in cultures friendly to more autocratic traditions), expect to see some companies holding on to the traditional structures. This will likely be dictated by the demographics and buying habits of the customer. On the other hand, be prepared to see an entirely new set of organizations arise from the newly enlightened Googleists.

Andrea Belz is the principal of Belz Consulting and the author of The McGraw-Hill 36 Hour Course in Product Development. Belz acts as a product catalyst, specializing in strategies that transform innovation into profits. She can be reached at andrea-at-belzconsulting-dot-com. Follow her on twitter at @andreabelz.

 

Dear Abbotsford Mayor and Council, please before it's too late...

Pre Script Note to Readers: If you are reading this blog and agree then please do 3 things: 1st, Tweet, Like, Blog or Forward this to as many people as you know would be interested, 2nd, Add Your Comments to the form below to add your voice, and 3rd, Contact your Mayor and Councillors to let them know you are concerned. Email: Mayor and Council Office Phone: 604-864-5500

The Abbotsford/Mission Waste Water Treatment Master Plan, drafted by an outside consulting firm and published in April 2010, told Abbotsford’s city managers we must update our water treatment systems and install new piping from far away places to bring more water to the city. This all at a price tag of roughly $450,000,000. Adding full life-cycle accounting over some 40 years, will make the actual cost significantly more.

But, there are some amazing alternatives, progressive municipalities around the world are currently employing that are providing internal revenues streams that are virtually paying for most or all of the capital infrastructure to build it. Which means by using their waste resources more wisely, those cities (and their taxpayers) are saving millions upon millions of dollars. 

Today, March 3, 2011, at a presentation made to Directors of the Abbotsford Chamber of Commerce and a few city councillors by Sequel IRM, a reputable resource management consulting firm from BC, we discovered there are integrated ways managing waste resources, called Intergrated Resource Managment (IRM) or Integrated Resource Recovery (IRR) that, when applied, offer municipalities savings of $10's or $100's of millions.

Sequel offered Abbotsford city engineers and managers an opportunity to spend a little to take a more thorough look at this for Abbotsford, and our City's managers turned them down. 

So, wait, let's get this straight. Even after the controversy of mis-managed money for Plan A and Arena-gate, Abbotsford's brass turned down an opportunty to look at saving hundreds of millions of taxpayer's dollars? 

Elected officials, mayor and councillors, please. It’s for times like these that you were elected. We your taxpayers implore you. Please stand up to your city management staff and say stop, $450,000,000 is too much!  Within the next few weeks you are responsible for making some far reaching and very expensive decisions.  Now is the time to look at the alternatives, before it’s too late!

Richard Shatto

Post Script: And, you need to do it soon, because Council is making important decisions regarding this in the next couple or three weeks. 

Why can't our city managers see the Treasury Value of our Waste?

The new waste management mind-set is still the same Waste = Cost and that has to change.

While I appreciate this Metro initiative to launch programs to recycle our organics, I'm dismayed there is no consideration of the "value" of the stuff we are throwing away. Indeed, our waste holds so much residual valuable that our City's engineers and managers should be scouring the globe for integrated systems and technologies that will put our organics and other trash resources to work for us. Doing so would provide opportunities for that waste to start providing cash flows into our city treasuries not out of them. If they don't, and continue their old mindset of "waste = cost", then we'll continue to pay to dispose our "organic gold" into landfills and now our latest disposal trend --- heaps of compost.

So, before you begin cheering for Metro's revolutionary recycling insights, realize not much has really changed. Mere composting, while admirable, is short sighted and still far too expensive. So, what's the better way?

An Integrated Approach to Resource Management is a much better way.

There is currently a significant study Metro commissioned to be done with the municipalities of the North Shore that looked at "best uses" of our waste "resources". This study is now completed and the report in the private hands of Metro. If Metro decides to make it public (still not imminent), it is going to show that our waste, if treated using a truly Integrated Resource Recovery or Integrated Resource Management approach (IRR or IRM), it will provide you and me -- taxpayers -- $1000's of millions of dollars. That's correct billions of dollars in REVENUES.

Private Companies know our waste is a cash cow, why can't our city managers?

The implications for our governments (and we the taxpayers) who keep raising our property taxes to pay for the host of services it offers (like garbage pickup and disposal, sewage treatment and water delivery) is enormous. A city the size of Abbotsford, applying an IRM/IRR model, has the potential to recover a billion dollars or more in revenue over the next 30 years. Alarmingly, many of our city's municipal engineers and city managers won't look at the IRR model in any depth. What that means to you and me is we and our children will keep paying. And, the most galling thing of all, if we continue the direction most our city planners and engineers are taking us, we continue to "pay" private companies for the opportunity to make two levels of profits from our resource. First for "tipping fees," which is a fee for the privilege of dropping our waste at their sites. Then, once tipped, they can now use our waste resource/product to gain additional profits. Is it any wonder there is a mad scramble today among waste management companies to get access to your's and my municipal waste? They know a cash cow when they see it. So, why can't our city managers, or at least those folks we elect every three years, see the folly of their ill-advised approach?

Write to your mayor and tell him to stop paying to dispose of our waste resource.

If you want your city to look for ways to not just lower the "cost" of disposing our waste, but to find ways to create revenue from it, contact your mayor and tell him it's time to get serious about IRM/IRR. Oh, and don't let him get away with telling you they are already doing it. Chances are his engineers have told him they are, but he's mis-informed. Ask him how much "revenue" the city is projecting get from the waste management program's they are looking at. Pretty good bet you won't be satisfied with his answer to that.

 

Terra Block System

The Terra Block System makes possible the large-scale construction of low cost, affordable, energy-efficient homes and commercial buildings. Terra Block, Inc. has perfected a machine that converts our most abundant raw material (common soil) into one of our most needed building components. These portable machines convert ordinary earth on a building site, into rock-hard, durable blocks, used in construction. The machine is towed to a site by a normal pick-up truck or SUV. It takes the soil, which is already there in abundance and converts it into strong, stable building blocks. There is no material cost and no freight expense. The blocks are dry stackable and do not require skilled labor to be made or used in construction. The raw material - dirt - is readily available at the job site. No material cost or freight. No expensive additives required. Dry stackable-Skilled labor not required for construction. Blocks are simply plumbed and stacked. http://www.terrablock.com/

Building System construction Low cost Housing

This interview makes the case for providing a building technology transfer that fits the culture and community. If the technology being transfered is too simple, it is false; if it is too complicated, it is useless.

The components of the Habitech International Building System are produced using machines and moulds assembled into production facilities configured to the specific needs of projects or to local markets. Typical production facilities will employ up and create indirect employment in construction activities.
http://www.habitech-international.com...

Focus on Haiti: The Road to Recovery – A Six Month Review | Partners In Health

Focus on Haiti: The Road to Recovery – A Six Month Review

Posted on 07/27/10


On Tuesday, July 27, 2010, Paul Farmer, Partners In Health co-founder and UN Deputy Special Envoy to Haiti, and Loune Viaud, Director of Operations and Strategic Planning of Zanmi Lasante (ZL), the Haitian sister organization of Partners In Health (PIH), testified at a Capitol Hill hearing hosted by the Congressional Black Caucus, "Focus on Haiti: The Road to Recovery - A Six Month Review.”

In his testimony, Paul discussed how foreign governments and NGOs must accompany Haiti’s government throughout the rebuilding process. “This shift will not be a panacea for Haiti but could be coupled with a powerful and complementary focus on another movement of capital, this time from public to private and from wealthy to poor: a focus on job creation and on strengthening the hand of those trying to farm (and reforest) the land and also on young people, especially young women, living in poverty,” he stated in his prepared testimony. “We need a greater sense of urgency. And the most urgent task of all is the creation of jobs that will confer dignity to those in greatest need.”

Read Paul Farmer's full prepared testimony

Throughout her testimony Loune highlighted the strides made in Haiti since January 12, while also stressing the immense challenges still facing her country. Haitians affected by the earthquake desperately need “healthcare, employment, decentralization, protection of children, women, adolescent girls, the elderly and the most vulnerable members of the population.” Loune noted that these challenges cannot be fixed with foreign donations. “Rather than charity, Haiti needs partners… Haiti needs jobs. Jobs will stabilize other parts of the country, empower the communities, and save lives.”

“We need Haitians to lead the reconstruction efforts. We need our partners to take a rights-based approach in the construction of a new Haiti,” said Loune in her testimony. “This means supporting the capacity and the leadership of both the Haitian government and Haitian communities; it means deferring to the experiences of Haitians and guaranteeing our participation in the rebuilding of our country; it means unconditionally respecting all of our human rights—including the right to food, the right to decent housing and sanitation, the right to health, the right to potable water, the right to education and the right to security.”

Read Loune Viaud's full testimony

Congresspersons Barbara Lee and Donald Payne oversaw Tuesday’s hearing. Testimony was also given by Dr. Rajiv Shah, Administrator, U.S. Agency for International Development; Marie St. Fleur, Former Massachusetts State Representative; Camille Chalmers, Director, Plateforme Haitienne de Plaidoyer pour un Developpement Alternatif / Haitian Platform to Advocate for Alternative Development, Haiti; and Ira Kurzban, Chair, Board of Directors, Institute for Justice and Democracy in Haiti.

2 weeks ago, Paul Farmer and Loune Viaud, key leaders in the International Haiti Reconstruction Effort and Clinton's right hand man in the process, gave testimony at a Capital Hill hearing. This is the summary, taken from the home page of Partners in Health, an East Coast agency, deeply involved in the effort.

Richard

Disaster Relief Housing - Nexgen Framing Systems

There are many different systems being proposed for providing low-cost permanent housing in Haiti. Here is an example of six unit apartment system. This looks to be close to a North American style system, with some construction time and costs saved by new panel and composite technologies and designs.

It would be interesting to see how much this cost and how much time it would take to actually build.