Do you have what it takes to be an entrepreneur?

 Independence. A search for freedom and independence is the driving force behind many businesspeople.

Personal Fulfillment. For many people, owning a business is a genuinely fulfilling experience, one that lifetime employees never know.

Lifestyle Change. Many people find that while they can make a good income working for other people, they are missing some of life's precious moments. With the flexibility of small business ownership, you can take time to stop and smell
the roses.

Respect. Successful small business owners are respected, both by themselves and their peers.

Money. You can get rich in a small business, or at least do very well financially. Most entrepreneurs don't get wealthy, but some do. If money your motivator, admit it.

Power. When it is your business, you can have your employees do it your way. There is a little Ghengis Khan in us all, so don't be surprised fi power is one of your goals. If it is, think about how to use this goal in a constructive way.

Right Livelihood. From natural foods to solar power to many types of service businesses, a great many cause-driven small businesses have done very well by doing good.

Funding your business - Do you want a co-signed loan?

Bankers sometimes request that you find a co-signer for your loan. This is likely if you have insufficient collateral or a poor or nonexistent credit history. Perhaps someone who likes your idea and has a lot of property, but little cash, will cosign for a bank loan.

A cosigner agrees to make all payments you can't make. It doesn't matter if the cosigner gets anything from the loan; she'll still be responsible. And if you can't pay, the lender can sue both you and the cosigner. The exception is that you're off the hook if you declare Chapter 7 bankruptcy, but the cosigner isn't. Cosigning a loan is a big obligation, and it can strain even the best of friendships. If someone cosigns your loan, you might want to consider rewarding your angel for taking this risk.

From my own experience, I cosigned a car loan for an employee once, and I'll think twice before I do it again. I didn't lose any money, but the bank called me every time a payment was 24 hours late, and a couple of times I thought I might have to pay. I didn't like being financially responsible for a car that I had never driven and might never see again.

Quick tips on writing a good business plan

EMPHASIZE MARKET NEEDS
To make a convincing case that a substantial market exists, establish market interest and document your claims.

Establish market interest
Provide evidence that customers are intrigued by your claims about the benefits of the new product or service:

• Let some customers use a product prototype; then get written evaluations.
• Offer the product to a few potential customers at a deep discount if they pay part of the production cost. This lets you determine whether potential buyers even exist.
• Use “reference installations”— statements from initial users, sales reps, distributors, and would-be customers who have seen the product demonstrated.

Document your claims
You've established market interest. Now use data to support your assertions about potential growth rates of sales and profits.

• Specify the number of potential customers, the size of their businesses, and the size that is most appropriate to your offering. Remember: Bigger isn't necessarily better.
• Show the nature of the industry; e.g., franchised weight-loss clinics might grow fast, but they can decline rapidly when competition stiffens. State how you will continually innovate to survive.
• Project realistic growth rates at which customers will accept — and buy — your offering. From there, assemble a credible sales plan and project plant and staffing needs.

ADDRESS INVESTOR NEEDS

Cashing out
Show when and how investors may liquidate their holdings. Venture capital firms usually want to cash out in three to seven years; professional investors look for a large capital appreciation.

Making sound projections
Give realistic, five-year forecasts of profitability. Don't skimp on the numbers, get overly optimistic about them, or blanket your plan with a smog of figures covering every possible variation.

The price
To figure out how much to invest in your offering, investors calculate your company's value on the basis of results expected five years after they invest. They'll want a 35 to 40% return for mature companies — up to 60% for less mature ventures. To make a convincing case for a rich return, get a product in the hands of representative customers — and demonstrate substantial market interest.