Here are a few do's and don'ts:

1. Do your homework before opening your new business. The most common reason for failure cited in recent studies was "outside business conditions" having to do with increased costs (such as rent and insurance)and new competition. You should study the existing and potential competition and factor in increases in fixed costs as you determine whether you have the capital you need to get started. If you're already in business, you can still do this research and incorporate the results into your planning. Go to the library and read up the specific costs and hazards associated with your industry. Get training or work in a successful business that is already doing what you plan to do so you can see from the inside how common problems are resolved and success is achieved.



2. Do eliminate or reduce existing debt as much as possible and clean up your credit reports before you open your doors for business. A 1998 study showed that difficulties obtaining financing and excessive debt were the second leading cause of business failures. Businesses started with at least $50,000 in capital had the best chance of success. This doesn't have to be your own personal capital, of course; but if you don't have it, you need to be in a position to borrow it, and that's difficult to do if you already have high levels of debt when you get started. Before applying for funding, be sure to get your credit reports, which you can do easily and cheaply at MyFico.com. The site has terrific tools you can use to get errors corrected. If your credit is poor, there are services, such as those offered through Eventis that will help you repair it (see our website).



3. Don't start a business as a sole proprietor or general partnership. You absolutely must put into place a separate legal entity, such as a corporation or limited liability company (LLC)to operate your business. If you're already in business as a sole proprietor or mom-and-pop partnership, you must do this immediately! The risks involved in starting a business, especially for independent entrepreneurs, are high enough without mu
   Business Technology Tools - What Others Have Done! Can You Do the Same?
   Some of the most successful businesses in the past few years have done so because of innovative technology they have purchased available in their industry. What does it take to make your business succeed? What is new out there in business technology that may help save your time or organize your salesforce into a leaner, meaner machine?!One good example of a business that uses new and innovative technologies to solve complex business and financial problems is IBM. IBM has continuously evolved and changed software and financial models to improve other company's businesses. They have stayed ontop of the learning curve while others have reverted to best practices.Numerous other businesses have used technology, soft
   ble lessons to those determined to succeed.
   
   

   Here are a few do's and don'ts:
   
   

   1. Do your homework before opening your new business. The most common reason for failure cited in recent studies was "outside business conditions" having to do with increased costs (such as rent and insurance)and new competition. You should study the existing and potential competition and factor in increases in fixed costs as you determine whether you have the capital you need to get started. If you're already in business, you can still do this research and incorporate the results into your planning. Go to the library and read up the specific costs and hazards associated with your industry. Get training or work in a successful business that is already doing what you plan to do so you can see from the inside how common problems are resolved and success is achieved.
   
   
   
   2. Do eliminate or reduce existing debt as much as possible and clean up your credit reports before you open your doors for business. A 1998 study showed that difficulties obtaining financing and excessive debt were the second leading cause of business failures. Businesses started with at least $50,000 in capital had the best chance of success. This doesn't have to be your own personal capital, of course; but if you don't have it, you need to be in a position to borrow it, and that's difficult to do if you already have high levels of debt when you get started. Before applying for funding, be sure to get your credit reports, which you can do easily and cheaply at MyFico.com. The site has terrific tools you can use to get errors corrected. If your credit is poor, there are services, such as those offered through Eventis that will help you repair it (see our website).
   
   
   
   3. Don't start a business as a sole proprietor or general partnership. You absolutely must put into place a separate legal entity, such as a corporation or limited liability company (LLC)to operate your business. If you're already in business as a sole proprietor or mom-and-pop partnership, you must do this immediately! The risks involved in starting a business, especially for independent entrepreneurs, are high enough without m
      Making Sure the Celebrity Will Be the Right Fit for Your Audience
      Chapter 2 of 14 Making sure the Celebrity will be the right fit for your audience.One of the biggest mistakes made when contemplating the use of a celebrity endorser is choosing a celebrity that does not complement your business or product well. For example, sticking a retired baseball player into a kids video about baseball could be a sure failure. Kids don’t recognize players from the past. If, however, the target market audience of the video was the kids father (who would be considered a baby boomer) then using a retired player might make a lot of sense. Using a retired player offers a very distinct advantage when it comes to the financial side of the equation. However, while choosing a player from yester
      search and incorporate the results into your planning. Go to the library and read up the specific costs and hazards associated with your industry. Get training or work in a successful business that is already doing what you plan to do so you can see from the inside how common problems are resolved and success is achieved.
   
   
   
   4. Do eliminate or reduce existing debt as much as possible and clean up your credit reports before you open your doors for business. A 1998 study showed that difficulties obtaining financing and excessive debt were the second leading cause of business failures. Businesses started with at least $50,000 in capital had the best chance of success. This doesn't have to be your own personal capital, of course; but if you don't have it, you need to be in a position to borrow it, and that's difficult to do if you already have high levels of debt when you get started. Before applying for funding, be sure to get your credit reports, which you can do easily and cheaply at MyFico.com. The site has terrific tools you can use to get errors corrected. If your credit is poor, there are services, such as those offered through Eventis that will help you repair it (see our website).
   
   
   
   5. Don't start a business as a sole proprietor or general partnership. You absolutely must put into place a separate legal entity, such as a corporation or limited liability company (LLC)to operate your business. If you're already in business as a sole proprietor or mom-and-pop partnership, you must do this immediately! The risks involved in starting a business, especially for independent entrepreneurs, are high enough without m
      Where Business Ideas Come From
      I was reading the local paper and came across a picture of the cleanest garage I ever saw. In addition to a picture of the garage there was a picture of a gentlemen, in his late 60's cleaning the cobwebs with an extension pole. I thought to myself I have never seen a garage so clean in my life. The accompanying article was discussing how this individual and another had painted and put cabinets in their garages, and how you could eat off this garage floor. Now we have all seen those storage cabinets for garages, but how many of us ever get them and if we do, don't we fill them up and then the garage goes back to looking like it did before we got them. Imagine if someone would come to your home, condo or townhouse and
      the second leading cause of business failures. Businesses started with at least $50,000 in capital had the best chance of success. This doesn't have to be your own personal capital, of course; but if you don't have it, you need to be in a position to borrow it, and that's difficult to do if you already have high levels of debt when you get started. Before applying for funding, be sure to get your credit reports, which you can do easily and cheaply at MyFico.com. The site has terrific tools you can use to get errors corrected. If your credit is poor, there are services, such as those offered through Eventis that will help you repair it (see our website).
   
   
   
   6. Don't start a business as a sole proprietor or general partnership. You absolutely must put into place a separate legal entity, such as a corporation or limited liability company (LLC)to operate your business. If you're already in business as a sole proprietor or mom-and-pop partnership, you must do this immediately! The risks involved in starting a business, especially for independent entrepreneurs, are high enough without m
      Telecom Audit Software
      If you own a business, you also have to install a communication system to run it. It is simply unthinkable to run a business without the right type of communication system, which is the backbone of your business. Each and every member of your staff needs to have a telephone or other communication device for running business operations smoothly.With as many communication devices as the number of staff in your business establishment, the chances of over-billing and even the misuse of the communication network can never be ruled out. This means your hard-earned revenues may be going down the drain while you are planning and working overtime to increase the efficiency of your resources to maximize your profits.You
      services, such as those offered through Eventis that will help you repair it (see our website).
   
   
   
   7. Don't start a business as a sole proprietor or general partnership. You absolutely must put into place a separate legal entity, such as a corporation or limited liability company (LLC)to operate your business. If you're already in business as a sole proprietor or mom-and-pop partnership, you must do this immediately! The risks involved in starting a business, especially for independent entrepreneurs, are high enough without multiplying them further by putting all your personal assets, including your automobiles and your personal residence, at risk. Some experts have argued that this way of doing business--which most opt for because it's "easier"--is so dangerous that it should be outlawed! This is true from a tax standpoint as well as an asset protection one. There are many advantages that the government gives to businesses that are properly structured which are simply not available to you if you insist on operating as a sole proprietor. Just don't do it!
      
      

      The right structure for your business would involve one or more entities--such as an LLC managed by a corporation. If you are a serious entrepreneur planning to build long-term wealth, a comprehensive home study course on business entities will save you thousands of dollars in fees, taxes and unnecessary losses. The resources on our website will help you choose the right entities for you and show you how you can get them set up quickly, easily, and inexpensively.

   
   
   
   8. Don't incur significant expenses without first putting your business entity in place. Start-up expenses, expenditures made before the date you are officially in business, in excess of $5,000 cannot be deducted in full in the year in which they were incurred; instead they have to be deducted over 180 months (15 years). By contrast, expenses incurred by an existing business can be amortized or taken all in a single year (within certain limits) under Section 179 of the tax code.
   
   
   
   9. Do be sure to check with your local and county governments to find out their requirements for doing business. You may have to register, obtain a permit, and/or pay a business tax, and there are stiff penalties that apply if you fail to comply with these requirements.
   
   
   
   10. Don't incur high fixed costs, such as rent, if you can avoid it in the early years of your business. Starting a business from home was cited as a positive factor in business success, because of this limitation on fixed costs. Obviously if you have a restaurant or gym, or something of that sort which requires a separate commercial space, you will have no choice in the matter. But if you do have a cho