Free Advice Is Worth Every Penny
December 6, 2007
Richard Denny is one of the best motivational speakers I’ve had the pleasure of listening to. And if I’m having a bad day, his regular inspirational quote is the first email I open.
This is one I read recently “Free Advice Is Worth Every Penny”.
Now, I’m not saying that all free advice sucks, but you know there’s no such thing as a free lunch. And some advice is certainly worth paying for, as it could save your business a lot of trouble later on:
The legal stuff: It amazes me how many people ask for free legal advice on forums. And the conflicting responses are a good indicator that some of the advisors are just guessing. But if you get it wrong it can cost you far more than good advice would have cost to begin with.
Solicitors are not cheap and some basic legal advice on employment issues etc can be had by joining The Federation of Small Businesses, for a small monthly fee. And if you’re from the USA, joining the United States Federation of Small Businesses will give you access to many free legal forms.
Money Issues: Don’t guess when it comes to your finances – especially tax. I saw a blog comment the other day and a reader was encouraging a young blogger who recently started an online business not to pay tax.
This was terrible advice because a) You can get into a heap of trouble if you don’t pax tax and b) Even if your business isn’t making a lot in the beginning you can usually claim your start up costs against tax – if you tell the taxman you exist.
If you can’t afford the advice of a good accountant just yet, there are other resources you can use. If you live in the UK, I highly recommend the Tax Cafe for excellent books and advice. And if you live in the USA,
Free ebooks and courses: You’ll find plenty of free ebooks and courses on the Internet. Some are ok, some suck and others are just long sales pitches for another product.
The trouble is, if you waste your time reading some trashy ebook, you can’t take it back and ask for a refund if it’s free. And time is one thing you can never get back.
Most free courses available online are for home study. Well, if you’ve ever studied at home before, you’ll know that it requires a great deal of self discipline and motivation. And you’ll be motivated a whole heap more if you’ve had to fork out a considerable chunk of money for a course.
Business Forums: Business forums can be a good way to share advice and get ideas. And they’re easy to join – even for stupid people, so always remember to do your own research rather than just blindly taking someone’s advice on a forum.
Blogs: Business blogs, including this one, are usually free to read. Some are good. But some are full of advice that the blogger has obviously never put into practice themselves. So, read them, by all means, but as with forums, always do your own research before following advice on blogs.
Have you ever taken free advice and regretted it later? Or have you been given free advice that turned out to be useful?
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Always a pleasure to be reading your posts, Cath. I’m back in the saddle with posting at Modern Worker again
I received some “free” advice yesterday from a fellow blogger that was excellent. Of course, the advice wasn’t totally free because I have “invested” quite a bit of time visiting and commenting at her blog. She visits and comments on mine and many others. I’m generally self-sufficient and had no intent of developing on-line relationships that I could tap into for advice. However, a potential opportunity arose yesterday in which I was totally out of my depth and I fired off a “Help, I need advice” email. I was not at all surprised when she responded with some excellent help in a short period of time. So, even though, excellent advice was freely given, for me, this is an excellent example of TANSTAAFL through on-line relationships.
TANSTAAFL = “There Ain’t No Such Thing As A Free Lunch” from “The Moon is a Harsh Mistress” by Robert Heinlein, which I first read back in the early 70s, I think.
Indeed. One thing I like about the personal finance blogosphere is that you get a lot of different viewpoints. So it’s easier to see the pros and cons of ideas—plus if someone says something really dumb, they’re likely to get heavily critiqued.
[...] Lawson has a great post on free advice [...]
I suppose for something offered free to have any validity, you need to know in what context it is offered.
There are (at least) two things you need to look out for:
1) The motivation of the giver. Why are they giving it? Is it to lead to a sale for something else? Is it because they want to look good in a forum? Or is it because they want to help you?
2) The authority of the giver. If it’s a legal issue for example, are they a lawyer? And specifically, are they a lawyer with experience and good track record in the relevant field of law?
Too often I see people spouting off an opinion in a forum or a blog, purely because it appears that they simply like to say something. And I’ve seen some outrageously incorrect advice given and apparently received with intent to apply.
If the person giving the advice is qualified to do so or has authority in that field, then it has weight.
And that’s where sometime in the blogging/forum/online world, you can seek advice, but be careful about where it is coming from.
I agree with Ian,.
The internet is filled with so much information (good and bad). And, even though I have two blogs, what I post is basically my opinion/ideas. What works for me, may not work for others.
If someone is using the internet for advice, the best thing they can do is check several reliable sources, and not rely on the first thing they read.
In the US, the best source for tax information, is the IRS. Their website answers about any possible question. A great resource for businesses in the US, is “SCORE” (Counselors to America’s Small Business)
Some say ignorance is bliss, but being ignorant in business, is a sure fire way to fail.
MW – I’m pleased you are getting time to post again – especially since you spent so long redesigning your blog.
Mike – that is a great abbreviation and v correct – even things that seem free are often not. I wonder if that book is still in print?
Mrs M – That is a good thing. The last thing you want is bad advice on personal finance. And it’s a good thing we have the internet sites and blogs, as some banks and so called financial advisors do not have a great history in that area.
Ian good points. And especially the ones about ensuring that lawyers are experienced and have good track records. I have been to lawyers who were not so good in the past and they can lose you a lot of money if you’re not careful.
Barbara – thanks. I need some info on US tax, so I will check out their site first.