If you are thinking of starting your own small business, you probably have heard all of the dire predictions. People will remind you that 4 out of 5 business start ups fail and that it will be much harder than you think, but remember that the successful businesses faced the same odds and there is nothing like the freedom of being your own boss. There are some major pitfalls that, if avoided, will greatly enhance your chances for success, and some actions you can take that will increase your ability to grow your business even in a rough economy.

One of the most important factors that increase a small business chances for success is that it is properly funded when it is launched. Most budding entrepreneurs spend a great deal of time preparing a business plan that accounts for nearly every conceivable scenario, but “murphy’s law” inevitably will show up proving that “anything that can possibly go wrong, does”. For this reason, you should always plan on it costing more than you think to get your new business to the point of profitability. The type of business you are starting, it’s operating costs and your personal finances will all be factors in how much money you will need, but plan on needing more than you think. If your business is well funded, it will better withstand the potholes you will likely encounter.