Recessions always seem to result in an increase in the number of people starting businesses. This is a good thing. At the same time, the internet seems to have exploded with the number of people claiming to be experts in advice or consulting for entrepreneurs. This article has been written as a result of the growing problem of entrepreneurs being taken advantage of by unqualified or outright fraudulent advisors and consultants. This is the first in a series of articles addressing how entrepreneurs can reduce their risks and costs while maximizing free resources and information, such as how to achieve search engine optimization (SEO) or marketing. without paying a dime.

1. Companies, services, scams and unqualified consultants or advisors
2. what information is free
3. When you should be paying for a qualified advisor and how to distinguish between fluff and real experience

Companies, Services, Scams and Unqualified Consultants or Advisors

Scammers, unqualified advisors, and marketing predators often offer quick income tips, Internet traffic promises, fundraising guarantees, or business and marketing plans. Others try to sell you information through webinars, e-books, seminars, or classrooms that can be found online for free. It is critical that if you seek advice you speak to someone who has performed all the functions of a start-up many times and not just part of it. If you wouldn’t ask a store clerk how to handle engineering issues, why would you even listen to a social marketer tell you how to set up your business? More on the identification of contenders will be discussed in a future article.

Being”an entrepreneur” is a mindset. Someone’s ability to sell a product, good or service does not make them an entrepreneur or even a qualified advisor, the ability to sell makes them a good salesperson. An entrepreneur recognizes the opportunity, develops a plan to capitalize on the opportunity and implement that plan to make the business a reality.

When starting or running a business, entrepreneurs have two main hurdles to overcome. The first problem is, of course, “How to do“or the mechanics of starting a business. Information, advice and resources outlining the mechanics of starting or running a business are available online at various private and government websites or in person at a local center such as the Development Center Small Business, SCORE or other FREE Micro Business Development Centers. You don’t need to pay a penny for this guide. To make use of these resources, it’s always best to think about your idea first before making any contacts. No one is going to think! should be thinking of your idea for you!

Checklist to think about your idea : Who, What, Why, Where, How and When

• Identifying what business you will be in?
• Why will you be in that business?
• What is your market?
• How big is the market?
• Who are your competitors?
• Why will consumers buy from you instead of someone else?
• How will you go after your customers (developing a marketing plan)?
• Who is going to do the work, will have a team, and is ready emotionally and financially?
• Where will your business be (physical location, online, at home)?
• How will you finance your business?
• When will you start your business? Will it be part time or full time?
• What is your passion?
• What resources do you need to move forward?
• Where will you look for resources?
• Where’s your head?

Answering the questions above before you talk to someone will help you because you now have the building blocks for a business plan and can explain your idea to your closest friends and advisors in a more organized and concise way.

For now, avoid at this stage:

• Have someone do your business plan for you. Business plans come in all shapes and sizes. Some are used just as a guide to actionable items and others are used to raise capital. You don’t need a business plan to start a business. You may need one in combination with a “Road Show” presentation and other items to raise capital.
• Pay for the following types of services (marketing, SEO optimization, accounting software, promotional items (other than business cards), classes on setting up a website or blog, fundraising, lead generation, books, seminars, payment network sites, etc.). I repeat: marketing and other SEO tips and tools are available for FREE.

Why?

1) Because your first money should go to the legal and physical development of your good or services such as registering the business, obtaining the appropriate licenses, registering a domain, Intellectual Property (IP) if necessary, selection and purchase of a web format. Note. Many web page designs are free, others have minimal costs involved. There are countless tools and plugins available for free or for minimal amounts that can guide you through setting up a website.

2) “Cash is king”, your ability to manage cash at the early stage goes a long way to your credibility if you raise money for growth or development.

What you could be paying at this stage is:

• Professional experience in the type of business to be established (Corporation, Sub-Chapter S, Limited Partnership, Sole Proprietor)
• Intellectual property fees: If your company will have intellectual property, get professional help from a company that can provide you with references. No references = no verification. Don’t be fooled by the excuse that they don’t disclose customer information.
• Market research, competitor research. This is important to understand who your competitors are and why they might buy from you. Market research can be time consuming, however it is essential if you are a home-based business, a service company or have a new product.
• Assistance in the development of cash flow, capital requirements, spreadsheets, budgets, etc., if you are not very good with numbers.
• Engineering assistance for technical development.
• A person who can review your plans. Plan review is very important as the excitement of a new idea often leads to monitoring of key questions. Make sure the person you speak to has not only the experience, but also the education to be able to provide you with the latest knowledge base and business development tools.

Be very careful with any contact that makes promises of success. No one can guarantee the success of fundraising, market share, internet traffic, sales, store traffic, etc. During the planning stages, you may pay for tasks, but not future promises.

The second big hurdle an entrepreneur faces is being emotionally prepared for the journey. Read “Riding the Emotional Roller Coaster of a New Business” to understand the emotional roller coaster headed your way. Underestimating the impact a struggling startup can have on your lifestyle, your family, or your mental health can lead to a business going bankrupt almost as quickly as your cash flow dries up. If you are willing to pay for this service, there are a few questions to ask yourself before hiring a consultant, life coach, or advisor:

1. Have they all failed?
2. Why did they fail?
3. What did you learn?
4. How has cash flow affected your lifestyle?
5. How are the top and bottom of the roller coaster managed?
6. Are you willing to tell me what I need to hear and not what I want to hear?
7. Will you be there when I fall?

Too often, life coaches, business advisors, and consultants have never experienced the difficulties of starting and running a business. too many”experts“Claim 1-3 successful businesses and a book, but you’ve never experienced the hunger it takes to train and develop an entrepreneur. Don’t let your enthusiasm for starting a new micro-business or start-up cloud your judgment.