| Let's start with the good news. You've no doubt heard | | | | recent studies was "outside business conditions" having |
| the statistics: that 9 out of 10 new businesses fail. Well, | | | | to do with increased costs (such as rent and |
| it turns out that census data show that about 65% of | | | | insurance)and new competition. You should study the |
| new businesses were still in operation after 4 years. | | | | existing and potential competition and factor in |
| As we dig a little bit deeper, though, the news is more | | | | increases in fixed costs as you determine whether |
| sobering for solo entrepreneurs: Successful businesses | | | | you have the capital you need to get started. If you're |
| tended to be employer firms rather than solo | | | | already in business, you can still do this research and |
| enterprises. And several studies don't even take into | | | | incorporate the results into your planning. Go to the |
| account sole proprietorships. A look at the factors | | | | library and read up the specific costs and hazards |
| contributing to success or failure in these studies, | | | | associated with your industry. Get training or work in a |
| though, can still offer valuable lessons to those | | | | successful business that is already doing what you |
| determined to succeed. | | | | plan to do so you can see from the inside how |
| Here are a few do's and don'ts: | | | | common problems are resolved and success is |
| 1. Do your homework before opening your new | | | | achieved. |
| business. The most common reason for failure cited in | | | | |