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I've been relatively aligned for a long time with sole proprietors, coperate entities, joint ownership companies and recently with blockchain blog based website (steemt.com) and after 6 years of doing this so I've noticed that most of these entities often make promises that might not be backed by plausible proof. In 2010 I remembered an business in my local area (name withheld) that came into inception and sold a lot of their equities to other business people in the promise that they'll get 50% of their investment every year and other type of monthly benefits as well.
As a person I tried to analyse the sustainability of this company and I found out that they can only afford to give out about 2% rather than the 50% they they earlier promised. Truth was that they had no major funding and any way they'd meet this 50% wasn't going to be legitimate and if there was something that gives potential investors assurance, it's always longevity, transparency and legitimacy and when a business asking for investments can't provide this solidly I feel they shouldn't even be in business at all. The reason why endorsement sells more than advertising is because it's been tested and trusted, and a positive post evaluation is mostly the reason for endorsement by a third party to another.
Another thing is having a reserve in case of failure in the initiative capital meant for business. The central bank of Nigeria for example demands a certain amount of money from commercial banks before they can be allowed for inception this is called (cash reserve requirement) and also a capital adequacy ratio of 10% or more. This is to ensure the banks have enough to pay off customers in case of liquidation, bankruptcy or a major event that may make the loss customers fund in their treasury. I feel that sometimes lack of regulations is the reason why we have so many untrusted ventures that comes and goes.
However the reason why ponzi schemes can't count as a recognised business venture is because they have no financial framework or infrastructure. But a potential investor sometimes needs to be assured that any risk to their money is being backed up with protective measures. So not having this might be an oversight on the part of these bodies and not recognising that these bodies or companies should have it in place is oversight on the part of potential investor and however, it ruins a business. Many organisations promised and still keep promising beyond their abilities and this sometimes is always a huge con to get people to buy in.
In essence that owners of project allows people that are investing in their project to understand the ultimate endgame or purpose to every new venture and the reason for this is so every stakeholder will understand the risks and rewards that's involved towards any money they're putting in. The main reason people go into business is for reward and skipping Information that that's going to help investors make decisions as to whether to bank on longevity or short term. In essence if you have a young business try to define what you'll be doing differently, why, it's benefits and demerits. I've seen a lot of project lately and after paying Cognisance and attention, I see they don't have a transparent outline through which their aims and objectives will run through.
This very saddening considering the fact that when these businesses becomes huge or attract lots of investors that's when they began to deviate to their original purpose, we saw this with dlive a once vibrant video uploading platform on the steem blockchain. In essence, this might be an oversight, it might not. Sometimes a particular action by some organisations that's become massive is premeditated and in this cases we can't call them oversight rather we can call it a deviations into the original purpose. So many companies startup with sweet deals to attract customers but in the long run they deviate to their original purpose of inception simply because they've gotten the user base and the community as well as the investors they want.
Interested in some more of my works?
The Practical Process Of Test Marketing A Potential Product That's New To A Market. (Part II)
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A Book Of Pun. (An Original Poetry)
The Fruitfulness Of Taking Actions Immediately We Make Decisions
How The First Attempt To Communication & Conversation Changes The Eventuality Of An Initial Outcome.
Waking Up "Undead". (An Original Poetry)
The Dilemma That Comes With Condoling The Act Of Betrayal
Building My Dream Advertising Firm; Getting Results From The Tip Of The Finger
Motivation, Self Love, Suicide And Depression; What Are The Determining Measures To Continuity?
My name is @Josediccus, a young Nigerian student who is a Dtuber, 📷 Psychologist, Poet And Sports Writer/Analyst. I'm using my contents as a process to create shared meaning as well as create expressions through which people on/off steem can relate. I believe content is a process to be enjoyed and relished and I'm up for any collaborations in my field stated above. Cheers
@Josediccus, your brother in pen and video 📷
I'm hoping to reach more people who are broken at heart and spirit, so share on any platform or resteem