FIVE THINGS TO HELP YOUR BUSINESS SURVIVE THE FIRST YEAR

1.  BUSINESS PLAN:

While there are many ways to prepare a business plan and some people spend days on such a plan, there are absolutely only two things you need to include -- (a) What business activity or service are you going to do to bring in INCOME to your business and (b) what are your EXPENSES going to be.

2. PICK THE RIGHT PARTNER:

Entering into a business is like entering into a marriage.   You should make sure that you can trust the person you are doing business with and that you want to be with them.   Just like you wouldn't marry someone you just met, you shouldn't go into business with someone you don't know very well.

3. HAVE A WRITTEN BUY-SELL AGREEMENT WITH YOUR PARTNER

I like to call this a business "pre-nup."  You need to know what's going to happen if you or your partner wants out of the business -- is one going to keep the business?  Sell the business?

4. PROTECT YOUR PERSONAL ASSETS FROM YOUR BUSINESS.

To do this, you make your business separate from your personal finances.  Most people do this by forming a corporation or a limited liability.  Create a separate entity and keep it separate.

5. KEEP YOUR OVERHEAD LOW.

Remember we talked about the business plan -- income and expenses?  In the beginning, you may have less control about your income but you should try to control (and keep low) your expenses.   Now is not the time for a corner office if a more modest space will do.