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