So you want to be a business owner? You have a great idea! Millions of individuals from all over the world share your dream, but only a few accept the challenge. And of those, more than 90% go out of business within the first two years.

  Let's take a look at what successful small companies do to beat those odds.

  First, they plan. Not just think about it. I mean really commit plans to paper. They develop a realistic "Business Plan".  This includes how many employees will be needed, the amount of money that it will take to support those employees (and their benefits), and the acquisition of supplies for the first two years. How much capital equipment is needed, and how it will be paid for must be on the list.

  Initial paperwork includes "formation" documents, such as city, county and state business licenses, incorporation, insurance and bonding, banking services, fictitious name filing, tax ID number, workers' unemployment insurance workers' compensation insurance, legal mailing address, and most importantly, capital cash flow. If you cannot operate for a year without any incoming cash, your chances for success are slim.

  New owners must be prepared to be the chief cook, bottle washer, waitress, bookkeeper, and errand boy. It would be a good idea to forego vacation planning for at least five years.

  Sole proprietaries have a better chance of success if there is adequate backup and no reliance on a particular skill or personality. Husband and wife teams excel in this area; whereas, partnerships, especially with family members seem to go awry more frequently. One partner always seems to be more committed than the other, which causes discord in both parties.

  New owners are often surprised by the fact that they must work fourteen to eighteen hours a day, seven days a week during the initial years, just to provide their services and complete the paperwork. Owners of failed businesses often do not put in the time on the bookkeeping and other paperwork that is absolutely necessary to become successful. .

  Most new small business owners say they became successful because they were willing to seek advice from others, especially the experts such as bankers, attorneys, consultants, and other business owners. They suggest that all neophytes try not to reinvent the wheel, but rely on the experiences of others. Included in this. category are the books and magazines at the local library. Read up, ask questions, and be an expert before you strike out on your own..

  There is still a place for another new business in this country. Who knows, with the proper planning and dedication, yours just might be that sustaining, profitable venture that will provide that rewarding career and reliable retirement.

[ Don Woods has developed many small businesses, and assisted many new companies over the past thirty years. He has a law degree and majored' Business Administration at the University of California @ Fresno. Contact Don at (702) 254-6606. ]

© 1997 by Donald L. Woods, All Rights Reserved