Startup Squander #2 -- Startup Consultants
Another creative industry designed to separate the entrepreneur from his money are the startup consultants. While some provide legitimate services for particular circumstances, the industry is expanding rapidly with ridiculously expensive consultants, most charging $150 or more to tell you the next few steps to take in your startup. Given that even the most basic startup requires a couple hundred steps to do it right, those fees can add up fast! There are also consultants to help you choose a business name, pick your branding colors, write your business plan, evaluate your marketing plan, and review your financial statements. As the owner of your business, shouldn't you maintain control over these aspects? Turning over every detail of your business to an outsider makes no sense...you might as well work for someone else. If your intention is to grow your business idea into a thriving company, you will need to understand the hows and whys of all business decisions. Therefore, you are again far better off spending your time than your money to get the work done.
Some entrepreneurs consider the consultant route because they are more concerned about the operations of the business and just don't want to deal with the details. Unfortunately, that is a recipe for disaster. Not knowing the details of all aspects of your own business will come back to bite you, one way or another. And, taking the easy route of outsourcing every aspect of your business that you don't like will likely spiral out of control to the point that you won't know what is going on with the bulk of your actual business. The reality is that no matter what type of business you want to start, the fundamentals are the same. The business of all small business is, well, business, first and foremost. During the startup stages, it is critically important for entrepreneurs to learn all they can about how each factor of the business works and how they all work together.
Some entrepreneurs choose to use startup consultants because they find it advantageous to have someone holding them accountable for their progress. Instead of paying a consultant, use your networking skills and find another new business owner to compare notes with and provide mutual accountability. A once per week breakfast to review each other's progress is far more helpful (and cheaper) than paying a consultant. Another option for in-person assistance with your business startup is your local SCORE office. Their volunteers are highly qualified (and free!)
If you have no previous small business experience, your best bet is to work through your startup one step at a time, absorbing as much information as possible. The keys to focus on are thorough planning, effective marketing, timely financial management, and how to evaluate the efficiency of each. Outside consultants do not have the same stake in your business as you do, so no matter how good they are at their job they can't be as vested in the outcome as you are. Save your money and spend your time working on your startup.
