Top Ten Dos and Don’ts
THE TOP TEN DOS
- Live frugally and begin saving up money for operating your business.
- Learn your business by working for someone else in the same business first.
- Consider the benefits of starting a moonlight business.
- Consider the advantages of operating a family business.
- Objectively measure your skills and training against potential competition.
- Consider subcontracting to low-cost suppliers if you’re manufacturing a product.
- Test market your product or service before starting or expanding.
- Make a “for” and “against” list describing the business, you are in or considering.
- Talk to lots of people for advice.
- Make a comparative analysis of all opportunities you are considering.
THE TOP TEN DON’TS
- Quit your job before you have completed start-up plans.
- Consider operating a business in a field you do not enjoy.
- Risk all the family assets. Limit your liabilities to a predetermined amount.
- Compete with your employer in a moonlight business.
- Be in a hurry to select a business. There is no penalty for missed opportunities.
- Select a business that is too high a risk or hurdle. Go for the 2-foot hurdle.
- Operate a business in which you must have the lowest price to succeed.
- Neglect to learn the negative aspects of an intended business.
- Permit entrepreneurial self-confidence to outweigh careful diligence.
- Allow the promise of a conceptual high reward to deter reality-testing first.
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