Starting a small business is a risky and potentially expensive proposition.   If you'll follow these seven formulas your risk can be reduced significantly.

Number one
Set a specific goal and visualize it as a reality. Play the picture of your goal as already realized on the screen of your mind over and over again. 

Number two
Look for a problem you can solve with a product or service that is high quality and good value. All successful businesses are based on products or services that are high quality and good value. 

Number three
Start small and learn your business thoroughly. Be patient. Invest time rather than a lot of money. One of the best ways to build a business is to start off on a bootstrap. This means that you start off with very little money and you grow your business with the money that you earn in the business, rather than outside financing, borrowing, loans from friends and so on. 

Number four
Test every major move before you invest in it. Test, test, test. Don't plunge into a business. Move ahead carefully, one step at a time. 

Number five
Expand on the basis of your success.  Borrow only as much money as can be serviced by the  cash flow from the business. 

If you're starting off with no money, go to work part-time for a business in a field that interests you. It's a valuable form of on-the-job training. Work evenings or work weekends. Or work on your holidays if you like. Sometimes a business that looks tremendous from the outside will look terrible once you start working for it. But sometimes when you start working for a business, you start to get an intimate understanding of how it works and you get insights on how you can improve it. 

Number six
Expand your business management expertise. Most businesses fail because of managerial incompetence. So take the time to learn what you need to know to manage your business. Be patient. The time you invest before you start will pay off over and over again in the months and years ahead. 

Number seven
Be prepared. The number one reason that people succeed in starting their own businesses is that they have the business knowledge and experience, in advance that they need to succeed. Do your homework. 

The Bottom Line
Start with a solid idea. Begin with a small operation. Some people think that they can be successful faster by putting all their savings at risk at the very beginning. The opposite is true. Start small and grow out of the cash flow from successful operations