7 ways to spot a bankrupt entrepreneur (and how to avoid it)

Are you bitter because your network is not working? Angry that the people you’ve been dealing with aren’t sending you business? Tired of working long hours at your business only to see your bank account nearly empty and your bills piling up?

The problem is with you, yes, with you. It has been giving away too much for too long and now it is attracting entrepreneurs with no resources.

Who is a bankrupt businessman? This is someone who operates with a frugal mindset, but refuses to spend money to run his business.

You are a smart entrepreneur with an amazing product or great services. However, the only way you can start reaping the financial rewards you deserve is to get rid of these bankrupt entrepreneurs.

First, you need to detect them. So, you need a strategy to avoid them, or if they are already infiltrating your life, you need a plan to get rid of them. Here are my 7 tips based on what my friends tell me.

1. Brokeback Entrepreneurs Always Pick Your Brain. They will email or call you whenever they find a problem that you have the expertise to solve.

   How to avoid them: Compose an email that lists all the freebies you offer on your website. This will include links to your blog, articles on your website, your podcast, and any other advice you freely offer online. Then end the email by saying, “If after reviewing my free resources you still have questions, you can rent my brain for $200 an hour.” You will never hear from the bankrupt businessman again.

2. Brokeback entrepreneurs copy from you instead of coming up with fresh new ideas. They will plagiarize your content, copy your website design, and use your trademarked name in their marketing materials.

   How to avoid them: Use a website like copyscape.com to monitor who is copying your website content. Being proactive in protecting yourself will prevent bankrupt entrepreneurs from picking on you in the first place.

3. Brokeback entrepreneurs attend all the free events you offer. They live for $0, teleclasses, webinars or workshops at no cost. They will never pay for any of your events, preferring to listen to the same one for free over and over again. Then they’ll come to you at every break or dominate every Q&A session for free tips.

   How to avoid them: you can’t. Instead, remove the question from the rude employer (without being rude, of course) and invite them to contact you via email. When you do, follow my advice in #1 above.

4. Brokeback entrepreneurs feel uncomfortable when you sell your products or services. They’ll email you after your teleclass or come up to you after your speech and scold you about how wrong it is to use 2 minutes at the end of your 50-minute information exchange to sell them anything.

   How to avoid them: Keep your humor. Remember, price is to a bankrupt businessman what billions are to Trump, so they will never be his clients, as they will never spend money with you. Instead, thank the bankrupt businessman for his advice, then move on to the next person. Don’t argue with the bankrupt businessman. Chances are, when the bankrupt businessman complains to his colleagues that he actually tried to sell something, the bankrupt businessman will have balls in his face.

5. Brokeback entrepreneurs will seek to exchange their services with you. They never want to spend money on anyone’s services simply because no one is spending money with him or her.

   How to avoid them: Not all barter relationships are bad. Instead, define the array in advance by writing a statement of work. Detail the start and end dates, what is included and excluded in the project, as well as a timeline. Also, issue an invoice that shows the value of the work you are providing, but has $0 for the amount due. Chances are, the bankrupt businessman will find someone who doesn’t take the bartering relationship so seriously.

6. Brokeback entrepreneurs expect you to drop everything for them. Because he or she is sitting in their home office twiddling their thumbs, the penniless entrepreneur expects you to be, too. The reason he or she has so much free time is because they are not making money. So when they leave you a voicemail or send you an email, they expect to see a response within an hour.

   How to avoid them– Update your voicemail greeting so people know when you usually return greetings. A typical response time is 24 hours. A general rule of thumb is to respond to your customers and prospects who inquire about your product or service that same business day. Typically, an entrepreneur with no resources isn’t either, so get in the habit of responding to network contacts within 3 business days.

7. Brokeback businessmen hang out together. Those who feel they shouldn’t spend money on anything other than registering a domain name are joined by those with the same mindset.

   How to avoid them: If you want to be a millionaire, hang out with millionaires. If you want to have a successful business, date people who have a successful business. If you want to be broke, date broke people. It’s that easy.