A 15-Point Checklist of Shady Adults Who Prey on People Who 'Want to Start a Business'

I meet high school and college students who say, 'I want to start a business.' It makes me very happy. Their energy is incredibly precious, and I want to support them.

But, or perhaps because of that, shady adults gather to prey on that energy. Even within my own observation range, there are quite a few. And many of them are things where you'd think, 'That's just a scam!' It's very unpleasant. Truly unpleasant.

I've been thinking for a long time about how to solve this. Honestly, there is no answer, and I feel like I have to keep working at it, but since there is a young person who is about to be deceived at this very moment, I will share a 'Checklist of Shady Adults' for now. If you meet someone who fits this checklist, please at least ask someone else about them or what they are doing. If possible, someone from a different community.

Of course, there are decent people who fit these characteristics, but conversely, those people will be told by a second opinion, 'Yeah, this person is legitimate,' so that should be fine.

1. Talking in terms of annual sales

Can't we just assume that this is basically a scam?

I mean, if you've done even a little bit of business, you know that 'annual sales' is a phantom... For example, if someone says, '100 million yen in annual sales!! (proudly),' it might sound impressive, but if you buy something for 100 million yen and sell it for 100 million yen, that's 100 million yen in annual sales, right?

While this is an extreme example, annual sales are just a number like that.

Also, naturally, 'monthly sales' are the same. When you look at things like '200,000 yen monthly salary' during job hunting, '1 million yen in monthly sales' can look shiny (I get it). But this might also just be buying something for 1 million yen and selling it for 1 million yen. Let's look at the substance. What kind of business are they using to achieve that?

You can just assume that anyone who talks about annual sales without being asked is a scammer.

2. Late-night meetings

I mean, no matter how busy you are, would you invite a female college student to a meeting late at night? And just the two of you? Isn't that shady enough on its own? If it's in a closed room, that alone is...

I'm writing this with a male-to-female dynamic for clarity, but this happens in all directions. It can happen in any relationship where there is a power structure.

Of course, I understand that there is a certain intensity that can only be born from that kind of communication, or things that can't be conveyed otherwise, but I think that's a conversation for after a considerable amount of consideration has been taken.

3. Thinking it's prize money, but it's an investment

If a business contest says 'Grand Prize 1 million yen,' you'd think it's prize money, right? But wouldn't it be shady if that was actually an investment? Even if it's not an investment, there are conditional terms like, 'If you make money with that business, I get 50%.' Yikes. This actually happens in reality; it's too scary.

4. Thinking it's an investment, but it's a loan

Similar to the above, they approach you with communication like 'I'll give you 1 million yen!', and just when you think it's an investment, if things don't go well after you start the business, they say, 'Pay me back.' Scary.

5. Saying 'High school girl'

Isn't 'high school student' fine for this? Similarly, 'college student' instead of 'female college student.' Wait, is the gender necessary? No, even if I concede and say you want to convey gender, isn't 'woman' or something fine? I think it's fine if the person with that attribute says it themselves, but why say 'girl [something]'?

6. Because I'm giving

Don't people who are actually giving avoid saying they gave something? Isn't 'give' a word that should only be used by the person who received it?
Because saying 'I gave' is already 'taking.' It's because you're forcing it and expecting some kind of return. If anything, it's more like a strong taker...

It's unfair for an adult to try to build a relationship with a high school student or someone similar by saying 'I'm giving,' and if they don't think that's unfair, they're just plain shady.
'I'm a giver' is ultimately shady.

7. You can succeed easily

The more people actually think about starting a business, the more they talk about abstract things, like philosophy or perspective. That's because specific methodologies become obsolete quickly, and they understand that their own theory of success is just n=1.

But because of that, people who haven't started a business yet tend to ask, 'So, how should I do it?' When someone comes along and says, 'You can succeed with this method!', they end up leaning on that.

I'll declare this now. Anything that says 'You can succeed easily with this method' is a scam.

Certainly, if you summarize business, it's a 'mechanism for profit,' so there are methodologies.

But that's not something you can realize by doing exactly as instructed from A to Z; it's something at an abstract level like 'What kind of value is it for whom?' Anything that says 'If you do it with this [some catchy foreign word], anyone can do it easily' is a scam. Let's search it first.

They might tell you it's not written anywhere because it's special, but human wisdom isn't that cheap.

8. Paid community

It might be just about right to assume that 98% of business communities are scams. Of course, I think there are some good ones, but there are just too many scams. Especially if it's a paid service—and even more so if it's targeting high school or college students, or if it costs more than 10,000 yen a month—I'd say that's already a red flag.

People often join these because they were invited by someone they trust, but being a good person and being competent in business are two completely different things. It's possible that the person themselves is being deceived as well.

Also, the idea that 'they seem competent in business, so if I can be like them!' is usually a lie. It's best to simply assume that before you start a business, you aren't in a position to judge someone's business competence at that level of granularity.

9. Strong initial denial

This is a technique often used in brainwashing: they strongly deny something to someone with less knowledge, saying 'That is absolutely wrong,' and crush the things you were previously unsure about. This makes you anxious. When you become anxious, you want to cling to something. Once you cling to them, you want to believe in them. That is how brainwashing is established.

'I'm saying this for your own good' is usually their go-to phrase.
That's a lie; they are saying it for their own good.

'I'm going to be harsh, but...'
Being harsh requires an established relationship.
Harshness without a foundation of trust is almost always used for other purposes.

10. Making you fail once

Failure is part of starting a business.
That is true, but anyone who tells you about failure to justify their own instructions or methodology by saying, 'The reason you failed is because you didn't do exactly as I said,' is dangerous.

That's not how it works. 'Failure' is born from a complex mix of various factors, so it's not like one single thing causes it. There's even a theory that they might be guiding you to fail in an obvious way.

11. Demanding mysterious consulting fees

If they start talking about 'consulting fees,' it's a scam. Yes, that's all there is to it.

12. Equity ratio

Sometimes you get funding with the promise of 'I'll give you money,' only to find out later that they own 60% of your company's shares. If someone says this to you when you don't fully understand the situation, definitely consult with someone else. Capital relationships are hard to undo. Anyone doing this without explaining it thoroughly is a dangerous person.

13. Tendency to force contracts

Contracts are effective for protecting yourself, but when there is a large gap in information or knowledge, they are basically structured so that the person who proposed them has the advantage.

"Oh, this is just a formality," "Just in case, you know," "We have everyone sign this," or "You don't need to look at it that closely"—these are all scams.

Later, when you feel something is off, they will absolutely say, "But it's written in this contract, isn't it?"

And because "contract" is such a strong word, you feel like you have to abide by what is written and what you have stamped your seal on. Quite strongly. Even though there are many unfair contracts out there, they won't explain that to you.
In such cases, please consult an expert.

14. I'm close with that person

People who call celebrities or famous business owners by their nicknames and say, "Oh, I'm super close with them!" are scammers. Try playing dumb and asking what kind of relationship they have. Usually, it's just that they met once, took a photo together, or are a friend of a friend.

Unless they have worked on a project together or their names appear side-by-side in a concrete, searchable way, it means about as much as "we're from the same hometown."
Even if their names are listed together, it's often just because the event organizer put them there, so it means nothing. Especially at events. It's common for the other person to not even recognize them.

15. "Do you know how much my hourly rate is?"

People who say this are quite pathetic, and their hourly rate is probably not that high either.

I think they have a sense that they are "doing you a favor" for many things, but such people are worse than those who just want to scam you because they will exploit you as a matter of course. Their logic of "If I think about it in terms of my hourly rate, it's fine to demand this much from this person" is completely skewed, so the right answer is to stay away. They strangely disappear in about three years.

That is what I can think of for now.
If you have any other examples of "this was dangerous," please let me know!

If you have high school or college students around you who say they "want to start a business," I would be happy if you could share this.

I also talk about various things on my podcast.

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