• Represent 99.7 percent of all employers.

• Employ half of all private sector employees.

• Pay 44.3 percent of total U.S. private payroll.

• Generate 60 to 80 percent of net new jobs annually.

• Are employers of 39 percent of high tech workers.

• Are 53 percent home-based and 3 percent franchises.

• Independence

• It belongs to you.

• More freedom and control.

• Included in the distinguished group of entrepreneurs.

• Two-thirds of millionaires are entrepreneurs.

Statistics show that 95% of small businesses fail within the first 5 years of operation.

Contributing factors include:

• No or poor business plan.

• Lack of start-up capital.

• Inadequate market research.

• Poor management/leadership.

• Inability or failure to change with the market.

• Inadequate marketing.

United States employer firms increased 1.9 percent between 2001 and 2002. Business bankruptcies decreased 5.6 percent. (courtesy SBA.gov)

Even though these statistics sound positive, they do not recommend hanging your "open for business" sign yet. You may have noticed there are still many articles written each year on the failings of small businesses. However, with the proper research and preparation, you will be in better position to join the 5 percent of business owners who do not fail. Below are our suggestions based on clients we have worked with and research of our own.

For starters, it is imperative you have a product or service that consumers will purchase. Is it something they need or want? Needs usually outweigh wants when the economy is in a recession, so keep this in mind unless your research proves otherwise.

Second, you must do your research. Search the Internet, libraries, local papers, talk to friends and anyone you know who can give you feedback on your service/product. If your service/product is already being marketed by another company don't get discouraged. In fact, go to the owner(s) and get as much information as they will give you - product demand, promotional techniques pros and cons, income and expenses. If your company location is not in their territory they may not see you as a threat and provide more information. Also, you may be able to set-up a referral service granted you are located quite a distance away.

Third, write a business plan. This can not be emphasized enough. There are plenty of books and software on the topic as well as free advice from people who have written plans. If these attempts fail, you can hire a professional for assistance as well.

Fourth, know where the money is coming from. Research how much capital you will need in order to start your business. Do you really need an office right away or can you survive with a post office box and answering service to start? Is the fancy letterhead necessary if your business is conducted via the Internet? Would your friends or relatives pass out promotional flyers in exchange for lunch?

Finally, never give up. If you have an idea, product, service that you truly believe in then find a way to make it work. Negative comments can quickly snuff out progression so, surround yourself with people who believe in you and offer positive feedback. Join a networking group, new entrepreneurs or small business owners group or search the Internet for message boards or chat rooms for informative positive discussions on the topic.

"I have far more respect for the person with a single idea who gets there than for the person with a thousand ideas who does nothing."

Thomas Edison