Investing in an actual business is much different than investing in real estate or stocks of a larger public company. Much of the wealth that citizens hold is built upon owning a small to medium size business. The size of the business is all relative to the location and genre of types of business you are involved in. Regardless of the size, running a business takes time, effort and a skill that not all people have.
Here’s a sobering statistic: only half of all small businesses will still be up and running five years after their start. Chances are if you’re starting a venture of your own, you’ve heard plenty of cautionary tales that illustrate this stat, but very little practical advice on how to beat the odds. While some aspects of success are dependent on factors that are outside of your control — most notably, changes in the economic climate after you’ve launched your business — there are some steps you can take to stack the deck in your favor, and some pitfalls to steer clear of. [...]