by Chuck Echeese

Created on: April 17, 2008

When you hear the phrase "The American Dream," the first things that usually come to mind are owning a home and owning a small business. So, we shall assume that after a few years in the "Rat Race" you have decided to become an entrepreneur. What should you do? How should you start? Well heres five easy steps to get you on your way. But first remember knowledge is key and never ever give up!

Step 1- Evaluate your ability and willingness to assume risk. Most new ventures fail and you should be willing and able to take that risk both psychologically and financially. If you can't handle failing you will never succeed!

Step 2- Evaluate your personal creditworthiness. You can obtain a credit report from the local office of the Retail Merchants Association or from one of the national credit bureaus.

Experian (Formerly TRW) 1-888-397-3742
http://www.experian.com

Equifax 1-800-997-2493
http://www.equifax.com

Step 3- Choose the venture based on your interests and skills and, of course, the need for that product or service in your market area. Remember if your passionate about it wont feel so much like work.

Step 4- Gather information for a business plan and loan proposal. Use the Business Plan Outline as a checklist to help you gather the necessary information for start-up, operations, marketing, and so on.

In addition to creating a financing proposal, doing a business plan will help you determine: 1) If your idea is feasible
2) How much the venture will cost to start
3) How much volume you will need to do to stay in business.

Every day, bankers see people who want a business loan for the "opportunity of a life-time" that "just can't fail." These want-to-be entrepreneurs usually attempt to explain their notion orally, and have done no research on the feasibility of the idea. In order to be taken seriously about your business loan, it is imperative you do your homework.

Once you have determined to start your own business the only thing that will stop you is discouragement. So remember have a positive attitude, do your homework, and work hard. Good Luck!

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