I recently experienced a very unfortunate situation with a “hit and run” F&B business.
These people aim to get people to invest then once they get the money they let the investors die
What I meant by this was that a group of people who worked together would try to start a business and find investors to invest together and then once they got the money and profited from it they would throw the business to die and move on to the next.
I was almost once conned into it but thankfully my sixth sense warned me from investing with this group of people who were introduced to me by a friend.
My friend unfortunately was unlucky to have lost quite a bit of money.
Here is a recount of what happened according to my friend who was scammed
The people who had started the business were only in it for the money. They had found a lot of investors and managed to quote a hefty price for the investment. They had promised us all a good return on our money, but when it came time for the returns, they disappeared.
It was only then that I realized that the people had started the business with no intention of making it successful. They had simply seen an opportunity to make a quick buck and had taken advantage of it.
I was devastated by the experience and felt like I had been taken advantage of. I had been so sure that the business was going to be successful and had invested a lot of money into it. Now I had nothing to show for it.
I have since learned my lesson and have become much more cautious when it comes to investing. I now do extensive research before investing in any business, and I make sure to check the background of the people running the company. I also make sure to read all the paperwork thoroughly before signing any contracts.
I would also like to warn other potential investors of the dangers of investing in a hit and run business, be it in F&B or any other fields.
There are many people out there who will try to take advantage of you and your money and thus it is important to know how to spot the signs of such ‘investments’.
If it is possible, definitely do a background check of these people and see if they had any other failed businesses elsewhere.