| "I want to start my own business and be my | | | | • Never use a credit card to start or |
| own boss!" Sound familiar? It may, because | | | | operate a new business. |
| nearly 95 percent of people have this pass | | | | |
| through their thoughts at some point in their | | | | • Keep your business idea in proportion |
| working lifetime. | | | | with the amount of money you have available. |
| | | | |
| "Get rich quick" schemes never work. Yet we | | | | Use common sense; if your means of financing |
| are repeatedly bombarded with TV and other | | | | your new business might potentially put a |
| advertizing promising us riches and status if | | | | strain on your personal finances, look for |
| we join their programs to gain "financial | | | | other means to support the new venture. One |
| success." But regardless of if the program | | | | should NEVER try starting a business to |
| they offer is a valid means of making an | | | | "save" a poor personal financial situation, |
| income or being successful, the truth is, new | | | | unless the new business requires no monetary |
| businesses rarely show any amount of profit | | | | investment and can eventually supplement the |
| in their first two years. | | | | personal income. Consider a business which |
| | | | utilizes your skills or services and requires |
| It has been estimated that as many as 90 | | | | little or no financial investment to start. |
| percent of new businesses fail in their first | | | | |
| year. Lack of planning is the number one | | | | Be financially prepared to survive your first |
| cause of new business failure; "financial | | | | two years in a new business. Allow for |
| planning" tops that list. Being financial | | | | personal income needs as well as the |
| smart is perhaps your best chance at success. | | | | businesses financial requirements. You may |
| Follow the basic guidelines listed here: | | | | need to "keep your day job" until the |
| | | | business gets established. |
| • Avoid business loans requiring the | | | | |
| collateral of your home. | | | | Better to be one of the 10 percent of new |
| | | | businesses who succeed, rather than facing |
| • Never mortgage (or sell) your home to | | | | financial and emotional devastation due to |
| finance your business. | | | | poor financial planning. |
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