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Find advisors you trust. A new business is uncharted territory, so it's really helpful to have guides. Heed the advice of your mentors, and find a good lawyer and accountant and follow their instructions.

Play by the rules. Some small-business owners strike out on their own because they're mavericks. This independence may make them think they can cut corners by not filling out paperwork or filing taxes, but shortcuts like these put everything at risk. It's easier to do things right the first time than to sort out a mess later.

Keep business and personal accounts separate. Don't mingle work and personal funds; open a checking account specifically for the business. Then document everything that enters and leaves that account.

Keep costs low. Do what you can to keep your overhead down. For example, don't spend $1,000 on a fancy Aeron chair when you can pick up a decent desk chair from Goodwill for five bucks. You'll be less stressed and have better odds of success if you don't have a lot of bills dragging you down.

Be willing to spend on training. Buy the books and manuals you need and pay for classes. Training like this is a necessary business expense, not a luxury.

Keep good records. Business will be slow at first, so it won't seem like a big deal that you keep receipts in a shoebox and don't have a filing system. But in time, you'll be flooded with paperwork. Get organized from the start to prevent future headaches.

Note

If you run a small business, take a look at Outright.com, a simple, free bookkeeping site. It's like Mint or Wesabe (Web-Based Tools) for freelancers and small businesses.

Be confident. When you start out, don't let your customers know you're nervous. They're lost, too, and hoping you'll guide them to the right product or service. So do research and become an expert. And if you make mistakes, learn from them.

Charge the going rate—or close to it. If you start a house-cleaning service, don't go in with low-ball bids. If you're too cheap, people will think there's a reason for it. Charge the going rate, and raise your price as demand increases.

Have an exit strategy. Know where you're going and why. Is your goal to sell your business? To have competent employees who can run things, leaving you to pursue other interests? Or is it just a lark, something you'll do for fun for a few years before dropping it altogether?

These are just the basics. There are tons of books out there with more detailed advice on starting and running a small business, and they're well worth reading if you want to make a go of it on your own. Remember: Millions of people have successfully quit their day jobs and pursued their dreams.

Note

Turning something you love into your full-time job may kill the fun. After all, work is work. If you decide to pursue your passion, take it slow. Start as a hobby business (Money-Making Hobbies) and expand from there. If you reach a point where you don't enjoy what you do, back off a little to see if you can get the magic back.

Resources for Entrepreneurs

If you're curious about starting your own business, your best source of info is the people you know. Do you have an uncle who owns his own machine shop? A friend who does freelance web design? A coworker who does landscaping on the side? These folks have real-world experience. Take them to lunch and pick their brains—it may be the best $20 you ever spend.

Here are some online sources of information:

A List Apart has a great article about starting a business (http://tinyurl.com/starting-business). The piece is aimed at artists and computer programmers, but its advice applies to nearly everyone.

The U.S. Small Business Administration (www.sba.gov) offers info about writing a business plan, finding loans and grants, and getting local assistance.

SCORE (www.score.org), the Service Core of Retired Executives, is a group of past and present business owners who act as