7 Ways to Research a Business Before Hiring Them

Image courtesy of Adamophoto | http://freerangestock.com/
Image courtesy of Adamophoto | freerangestock.com

Creating and launching a business website that looks completely legitimate takes about 30 minutes. But it takes less than five minutes for a consumer to get scammed by one of these rogue, “fly-by-night” websites that are here today and gone tomorrow—with your money.

Double-dealing “brick-and-mortar” businesses continue to exist as well, simply because most consumers aren’t sure how to begin researching a business before interacting with them.

Although the Internet harbors millions of scam artists who prey every day on unsuspecting consumers, the Web also provides portals through which anyone can perform a background check on virtually any business in the world.

7 Ways to Research a Business
  1. Search for a U.S. or Canadian business on Better Business Bureau’s website or call your local BBB. You’ll find a company’s rating (from A+ through F) along with a history of customer complaints. BBB also provides information about the services or products the business offers and whether government actions have ever been taken against the business. If the business is a BBB Accredited Business, that means the business has agreed to uphold BBB’s eight standards for trust.
  2. Contact your home or auto insurance agent for advice about directing to you dependable and professional businesses. Because insurance companies deal with a wide variety of commercial businesses, your agent may be able to help you discover whether a business is exceptional or substandard.
  3. Every U.S. business is regulated by the Federal Trade Commission, a government organization whose goal is to protect consumers from unfair trade practices and other unethical business activities. On the FTC website, you can search for news about a particular company relevant to your research. Likewise, the American Bar Association oversees law firms and attorneys, while the U.S. Securities & Exchange Commission standardizes financial entities.
  4. Search local, county and state civil and criminal court records for litigation cases containing the company’s name. Businesses that own property or have filed bankruptcy in the past may be included in country or state tax records if there is a lien against their property. Federal district and bankruptcy courts may also shed further light on the reputation of the business. In addition to running the company’s name through a search portal, checking the names of owners, co-owners and employees may also turn up interesting information pertinent to your research.
  5. Request a business credit/background report from Experian, Equifax, Dun & Bradstreet or LexisNexis. You will be charged a fee per report, but these are highly reputable services that are known to maintain accurate information on most businesses operating in the U.S.
  6. Don’t forget to check social media sites for potentially compelling information. LinkedIn, Facebook and Twitter may offer insights from other customers who have used the company. However, beware of review sites such as Yelp—what reviewers say about a business may be fueled by reasons more personal than business-related, which offers nothing helpful to your research. Take what’s said on those review sites with a grain of salt.
  7. If you don’t have the time or desire to do a comprehensive background search on a business, you can always hire a private detective or professional background check company that specializes in accessing lesser known databases and performing on-site investigations.
About Better Business Bureau
  • BBB is one of the best places to begin researching a business because of its easily navigable interface and the wealth of information provided by its database. In addition, businesses that are accredited by BBB and display BBB’s seal on their website or advertisements are favored by consumers over non-accredited businesses. In fact, 74% of consumers prefer to do business with BBB Accredited Businesses, as stated in a Roper survey.
  • A BBB Accredited Business maintains adherence to stringent BBB standards that include consistently applying ethical business practices to all facets of the company, protecting customer privacy, using honest advertising strategies and remaining as transparent as possible to customers.

Taking the time to research a business before hiring them may save you a lot of money, stress and time lost pursuing a potentially lost cause.

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