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and franchise sites such as www.franchisegator.com. These will give a potential business owner a wealth of information so far as what kind of capital and overhead each business will require. Once you have narrowed your choices, take time to do the demographics in your target area. Sites like www.freedemographics.com are a good start. Take the time though to scout out the area in person, especially if your business is a walk-in intensive operation.

By now you should have a business in mind. Work up a great business plan. It can help guide the business during its early formative years; many investors will not even look at investing in a business until they have seen a comprehensive plan. Sites like www.allbusinessplans.org offer pre-drafted plans.

Finally, get your financing in order before leaving your present job, if that indeed is your plan. A person should have enough liquid capital and credit to last two to three years. Otherwise it might be a better option to begin a business on the side and grow it to maturity while working full time.

Developing a line of credit before your business requires it is an excellent way of warding off the inevitable growing pains that all new businesses go through. Establishing a line of credit at a local bank, applying for no-annual-fee credit cards, and taking out home equity lines of credit are all good sources of funding as long as your employment history is solid and your credit in good standing. Don't wait until it's too late. Establish credit early and often.

[1] http://www.score.org/small_biz _stats.html

[2] http://www.usatoday.com/money/ smallbusiness/columnist/abrams /2004-05-06-success_x.htm

Learn more about this author, Dan Glover.
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