Step 5: Persist, or Don't
For me and for many other makers, knowing when to quit can be a very tricky matter. If you care enough about something to create it in your garage, it can be next to impossible to know when to fight and when to switch gears.
I'm afraid I don't have any great advice on this one: it's a balance I wrestle with myself. Just remember that, regardless of what bureaucracies approve of your project, there are plenty of challenges to work on. And, for most projects of reasonable size/odor/explosiveness/volume combinations, you can likely get away with having your illegal prototype without too many officials spilling their stamp ink!
On my pedicab example, I think I was about to have to give up and contemplate getting a normal job *shudder*:-)