| The road to entrepreneurship offers plenty of | | | | yourself means you will know exactly what you |
| opportunities to waste money. Unless your rich | | | | are agreeing to. Even if you have your attorney |
| uncle is bankrolling your entire start-up without | | | | review them, it will be cheaper than the average |
| concern for what and how you spend, you need | | | | service. The hardest part is deciding whether an |
| to keep your expenditures under control. The top | | | | LLC or Corporation is the better choice for |
| five ways that entrepreneurs waste money, but | | | | you...and nobody but you should be making that |
| shouldn't, are: | | | | decision. If you have complicated issues involved |
| Startup Squander #5 -- Franchise or MLM Fees | | | | in your organization or have specific concerns |
| Don't bother with these business models. | | | | about partnerships or assets, or you are planning |
| Franchises, even the best ones, are too | | | | an IPO, work with a competent attorney in your |
| expensive for what you get, and MLMs are just a | | | | state. |
| bad idea. The money you put out for either only | | | | The entity registration services available charge |
| provides you pieces of the operations side...you | | | | fees from one to several hundred dollars, plus |
| are still at square one as far as your overall | | | | your state's entity registration fee. |
| startup. Your franchise and MLM fees buy only | | | | Start-up Squander #2 -- Start-up Consultants |
| the operations ideas or access to brand products, | | | | Start-up consultants are available to do everything |
| you still must complete all your own planning, fund | | | | from naming your business to writing your |
| all equipment, location, staff, etc., and figure out | | | | business plan. Some newer breeds offer services |
| how to get the product sold. You are far better | | | | to walk you through the start-up process, |
| off coming up with your own business idea, | | | | charging $150 to tell you the next three things to |
| learning what you need to know, and actually | | | | do for your start-up. Even the most basic |
| working for yourself. And anyway, why share | | | | start-ups require over 100 steps, so the fees add |
| your profits with your franchisor or upline? You | | | | up very quickly. As for the specific service |
| are doing the work, you should reap the rewards. | | | | consultants (name your business, conduct market |
| Franchise fees range from a few thousand dollars | | | | research, write your business plan) - It's your |
| to tens of thousands, plus a cut of your profits | | | | start-up, so why would you leave critical basics to |
| through the life of the business. MLM buy-ins | | | | somebody else? You will be running the business, |
| range from a few hundred to several thousand | | | | so it only makes sense that doing most of the |
| dollars. | | | | preparation work yourself will greatly increase |
| Startup Squander #4 -- Grant Seekers and | | | | your odds of success. |
| Consultants | | | | Startup consultant fees can range from hundreds |
| There are very few, if any, government direct | | | | to thousands of dollars, depending in the service. |
| grants for domestic start-ups. There are no | | | | Start-up Squander #1 -- Perks |
| secret grants, and there are no tricks to applying | | | | Some first-time entrepreneurs are under the |
| for grants if your business idea does happen to | | | | delusion that simply becoming a business owner |
| qualify for one. The Federal government does | | | | means you drive BMWs, frequent expensive |
| earmark millions each year for small business, but | | | | restaurants for every meal, and take exotic |
| the majority is distributed through SBA programs | | | | vacations at will. The reality is that although |
| which are used to guarantee bank loans or | | | | entrepreneurship is just about the only way to |
| provide short-term working capital to existing | | | | achieve that lifestyle, it doesn't happen overnight. |
| businesses. Some money ends up with local | | | | For all new businesses, the first goal is |
| economic development NFPs who may provide | | | | Ramen-profitability -- making enough money to |
| training or micro loans to first-time entrepreneurs. | | | | keep yourself and your family in Ramen noodles. |
| If you qualify for any help through these NFPs, | | | | Plugging most of the profits back in to building the |
| their staff will help you through the process for | | | | business is the only way to become rich. Spending |
| free. | | | | your limited start-up cash on frivolous luxuries is a |
| Grant consultants charge a wide range of fees, | | | | sure route to failure. Watch the pennies during |
| but most are in the thousands. | | | | start-up and the early stages, and the dollars will |
| Startup Squander #3 -- Entity Registration | | | | appear. |
| Service | | | | It is common for entrepreneurs to blow through |
| If you have a straightforward situation, you can | | | | their entire start-up budget on basic perks -- |
| easily do it yourself. If you don't, you need an | | | | eating out, overspending on gadgets, and |
| attorney. Paying for these services make no | | | | improving their personal "image" with clothes, cars, |
| sense - if you understand enough to fill out their | | | | and accessories. |
| questionnaires about how you want your LLC or | | | | Conclusion |
| Corporation set up, you can just as easily set it | | | | Be conscientious about how you spend your |
| up yourself. Most Secretary of State websites | | | | start-up capital - stick with only those things that |
| now provide a simple online form to fill out with | | | | are absolutely necessary to get you to the next |
| clear explanations for each section. Templates for | | | | step. Anything that will make your start-up faster, |
| the Articles of Organization and Owners' | | | | better or stronger can be good, as long as the |
| Agreement are easy to find, and writing them | | | | benefit is worth the cost. |