Given that three out of every new businesses fail in their first year, one has to consider if in these economic times that starting a small business is a good idea.

Bad economic times are good for a lot of businesses!

If you are going to start a small business you need to have certain qualities and of course some cash for the start up costs. The main quality that you need to have is that you be a hard working individual because no small business will survive unless the owner works and works a lot of hours. I can not stress the importance of the work ethic required because that is what will set the tone for your success.

You also need to be pretty organized and have the ability to multi-task as you will be wearing many different hats initially. The multi-tasking is actually a real fun part of owing your own small business because it brings out your creative juices as you need to figure out how to get twenty five hours of work done in a twenty four hour day.

Given that the work ethic, the multi-tasking and that your organizational skills are up to par, the next thing to consider is capital.

Too many people try to open their small business with little or no capital thinking that they will earn as thought they have a regular nine to five job and receive a check every Friday. In business that is not the norm and you have to think in terms of months as opposed to weeks when getting paid.

That being said, the SBA recommends twelve months living expenses in the bank when starting a business. My opinion is that they are being very cautious as every business I started generated revenue with a month and supported me and my family with just a few months. Of course, it may well be better to err on the side of caution.

Hard work and reasonable capital can put you in the driver's seat when you start a small business!