Beware the Business Saboteur

By Rich Mintzer of Entrepreneur.com



In an unstable economy, business owners face more than just a decrease in customers; they face an increase in the number of people willing to do whatever it takes to make money. Enter the saboteur, someone willing to con, scam, steal or sue at the expense of your business.

From reviewing your books regularly to watching surveillance tapes, it's imperative now more than ever that you protect what you've worked so long and hard to build -- your business.

Sometimes, the saboteur is right under your nose, as Ric Heffernan, general manager of Winslow Aluminum in Vassalboro, Maine, can attest to. Heffernan had two partners who were nearing retirement. They hired a bookkeeper who happened to be the daughter of one partner and niece of the other.

Little did they know, the bond of family trust would be broken to the tune of more than $750,000. It was only once they brought in consultants to appraise the value of the business that the bookkeeper's "discrepancies" were discovered.

"The consultants asked me, 'Where's the money'? At first I didn't know what they were talking about," Heffernan says. "Then they showed me some recent invoices that had not been paid, some of which were six months past due."

He quickly realized that the bookkeeper had fake books showing invoices paid, while she was instead making out the checks to herself. Additionally, she had thrown out all statements, bills and invoices.