1. Follow The 80:20 Parteo Principle: In running your small business focus your energies on activities that make you the most money. This limits your risk in that you're not spreading yourself too thin. if you allow yourself to be pulled in many directions you're distracted from what really makes you money. Don't let off-focus opportunities derail you from your main vision.

2. Don't build a small business you can't finance. This is an issue that dwarfs other issues. access to capital is vastly more inportant than anything and everything else. You've got to be wise on how to approach your financing and secure as much start-up capital as you can.

3. Think ahead: Advice about developing a business plan is sound. But think ahead about operational and logistic matters as well. For example, by establishing plans for dealing with production delays or problems with vendors beforehand, you'll be able to defuse these issues quickly, without hurting your bottom line.

4. Draft legal agreements (forms): Have standard contracts like non-competes and non-disclosure agreements on hand to deal with your three main liabilities; employees, vendors and customers. Getting everything in writing limits your liability in case things go sour (like an employee leaving and taking two other top sellers with hm). A library of standard business letters and business forms like instant business letters would save you time and legal fees. Most small businesses don't have to pay a lawyer everytime they need legal forms.

5. Don't fear risk - manage it: Managing small business risks - that is limiting your liabilities and general exposure keeps thouble at bay and gives you the freedom to innovate. Hiding from all risks, even the innovative , invigorating kind, can cause your business to get run over - which is an even bigger risk.

David Davis
Small Business Resource