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 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.




4. 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.



5. 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.



6. 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 choice, create a dedicated work space in your home.



7. Do obtain one of excellent business tax guides we recommend on our resources page (http://www.wealthstrategies202.com/taxes.htm). The studies of business failures cited tax problems as one of the major causal factors. Unless you're a sole proprietor, the tax guides commonly available are addressed to individuals and don't help much with business taxes. (And if I've not convinced you not be a sole proprietor yet
   Nevada State Corporation - The Number 1 Reason to Incorporate in Nevada
   It's Extremely Difficult for Anyone to Pierce Your Nevada State Corporate VeilFirst, what exactly does "piercing the corporate veil" mean? When you form a corporation, whether it's in Nevada, California, Texas or wherever, you must follow certain corporate formalities. Remember, a nevada state corporation can do everything you can do except act or think, so it does those things through your board of directors, officers and shareholders. If your corporation does not keep accurate records of meetings by minutes, and if the corporation commingles funds, it makes it easier for someone to pierce your corporate veil if the corporation is involved in a lawsuit.Low capitalization is another reason why corporate
   ill 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.



8. 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).



9. 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.




10. 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.



11. 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.



12. 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 choice, create a dedicated work space in your home.



13. Do obtain one of excellent business tax guides we recommend on our resources page (http://www.wealthstrategies202.com/taxes.htm). The studies of business failures cited tax problems as one of the major causal factors. Unless you're a sole proprietor, the tax guides commonly available are addressed to individuals and don't help much with business taxes. (And if I've not convinced you not be a sole proprietor yet
    Lack of Discipline with Executive Management
    We sure seem to see a sense of entitlement of the graduating classes of MBA Students. You know they just think they know everything. Having done much public speaking on the subject of business, management and marketing I was always completely under whelmed at the questions that these business students would ask me.I use to think to myself what an idiot under my breath, but of course I was cordial. Much in the same way that many executive managers are condescending to their middle managers. And much in the same way as the President of the Company or even the Board of Directors are to their underlings. But in the end someone really needs to take these young hot shot know it alls and shake them silly, as they lack discip
    ur credit is poor, there are services, such as those offered through Eventis that will help you repair it (see our website).



14. 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.




15. 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.



16. 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.



17. 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 choice, create a dedicated work space in your home.



18. Do obtain one of excellent business tax guides we recommend on our resources page (http://www.wealthstrategies202.com/taxes.htm). The studies of business failures cited tax problems as one of the major causal factors. Unless you're a sole proprietor, the tax guides commonly available are addressed to individuals and don't help much with business taxes. (And if I've not convinced you not be a sole proprietor yet
    5 Tips to Choose the Best Home Business Opportunity
    With the rise of the Internet, there's never been a better time to launch a home business. Millions of people are choosing to work from home and make money on line, using only their computer and mouse. Millions more are involved in more traditional network marketing, scheduling parties and selling products to their friends, neighbors, and family. If you want to make money on line, how do you know what the best home business opportunity is for you? Read on for five tips to help you choose. 1. Know your options. There are tens of thousands of Internet-based home businesses, if not more. They range from multi level marketing opportunities to ecommerce to intellectual property sales. Your first step should be to find
    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.




19. 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.



20. 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.



21. 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 choice, create a dedicated work space in your home.



22. Do obtain one of excellent business tax guides we recommend on our resources page (http://www.wealthstrategies202.com/taxes.htm). The studies of business failures cited tax problems as one of the major causal factors. Unless you're a sole proprietor, the tax guides commonly available are addressed to individuals and don't help much with business taxes. (And if I've not convinced you not be a sole proprietor yet
    Find and Do Your Own Thing
    In quality manufacturing, speed requires standardization. No wonder Six Sigma, Zero Defects and ISO Certification receive so much time and attention.But in quality service, doing something unusual or eccentric can create a powerful impact. In service, it can be quite acceptable to find and do your own thing.Here are just a few examples:A waiter at the Sugar Beach Resort in Mauritius comes to work each day with a thermometer in his pocket. On the way to the restaurant he takes the temperature of the ocean water and the swimming pool. As he pours coffee and clears plates during breakfast, he joyfully tells guests exactly how warm and enjoyable their swimming will be that day.A room service attendant
    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.



23. 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 choice, create a dedicated work space in your home.



24. Do obtain one of excellent business tax guides we recommend on our resources page (http://www.wealthstrategies202.com/taxes.htm). The studies of business failures cited tax problems as one of the major causal factors. Unless you're a sole proprietor, the tax guides commonly available are addressed to individuals and don't help much with business taxes. (And if I've not convinced you not be a sole proprietor yet, one look at all the tax deductions available to a properly structured business operating as a corporation or LLC will!)

Follow these simple rules, and you will dramatically increase the likelihood that your business will be one of those still around in five years.