Some start up advice from the Internet:

What happens in a year that makes it the make-or-break-period for a small business?

People spend most of their startup money. They don't have as many orders as they need to pay their bills. And people don't anticipate the expenses that come up. Also, most entrepreneurs need to build up their markets and loyalty slowly. Maybe 1% of people have an unbelievable product, but most have to build up their customer base and they end up running out of money before they get there.

What are the three key things that have to happen within the first year so a business doesn't fail?

Get to know your product, get to know your market, and get good employees. You have to have good people to back you up, and you have to know your target market or you are wasting your time. If you have the wrong market, you have to keep testing to find out what that market is.

What is crucial for an entrepreneur to know when starting his or her business that might help it survive?

They should know what their goals are and what they want out of the business. Do they want to simply make a living? Do they want to end up being a big company like Google? Do they want to stay local or sell nationally? They have to have some goals to know what they are going to be and what they are going for.

What is something that often happens during that first year that can overrun a business if it is not dealt with?
One of the easiest things to get behind on is payroll taxes. And once you get behind it starts to mushroom. The IRS won't come after you right away, but they will get you in six months. Another thing: You almost have to go into business thinking that you are not going to make a fortune initially. In the first year, you need to make a foundation first. And in the beginning you have more bills than you know what to do with.

You say that an owner's attitude can affect the entire business. How so?

Sometimes owners go into a business thinking, "I'm king. I can do what I want." It turns out to be the opposite. The people working for you pick up on that attitude, and if you are vague or indifferent with customers they will be, too, and your customers will not come back. It can ruin a whole business.

You also say that losing a big account is not the end of the world—explain.

First, you should never take an account that would ruin your company if you were to lose it. You can lose an account for any number of reasons. A larger account has a lot of expenses. You need to think about what you would do if you lose that account, so that your business will not go down. You can't let it shut you down. You should have backup sources and not give that big account everything. That way they can't take everything if you lose that account.

How would you advise someone to deal with competition?

Know what your competition is doing. You can't run a business and ignore it. If you are a retailer, shop your competitor's store or send in mystery shoppers to see how they treat customers. Check their Web site to see what they are doing. They might be announcing something new, and you don't want to be caught off guard. Hopefully, you have something that you are working on and it is better. That way you don't have to get into a price war, because that's when everyone loses. You need to be aware of your competitors or they will eventually pass you by.

Through experience, I've found there are no shortcuts to launching a business--you have to do your homework to understand your customers, competitors, market conditions and risks. But there are some principles I've found to be very effective for growing both my company and my clients' businesses whether they are startups or Fortune 500 corporations, whether they sell consumer products, professional services or technology products.
Even though we are all start from different places, these seven lessons have certainly served me well over the years:
1. Stop selling and start sharing. People are much more interested in what you have to say when you're sharing your knowledge, your passion and your experience to help them solve their problems. Focus on being interested in them, and don't worry so much about being interesting. It's amazing how interesting you are when you're paying attention to your customers' needs. People buy from those they like, trust and identify with. Building rapport creates that trust and credibility. Just remember, it's about the relationship, not the sale. Nobody likes to be sold, but everyone likes to buy.
Do: Listen to what your prospects and customers say with their words and body language.
Don't: Pull out a brochure or sales sheet unless they ask for it.
2. Differentiate or die. What makes you unique vs. the others in the market? Make sure there's something special about your product or service other than the price. Own something important in your customers' hearts and minds. Being good is no longer good enough--you have to find something where you're great. Use your imagination and creativity to set yourself apart from the crowd. I once worked with a business owner who always wears red. She works in a male-dominated field where everyone has basically the same credentials so at least she's easy to spot at events. "The lady in red" gets most of her work by referral, which is a great way to build a business.
Do: Talk to real customers and ask them for a report card
Don't: Chase last week's/quarter's/year's trend
3. Solve problems people will pay for. Revenue is validation. Are customers voting with their wallets? Are your products or services the "nice to have" thing or the "have to have" thing? Be very important to your most important customers--they should think of you first for any needs in your category. Also, make sure you have more than just a "one off" good idea. Although great businesses start with great ideas, not all ideas are company-worthy. Many of the dotcoms forgot that the business model must actually work, that cash flow matters and that it's not just about building awareness but about making the sale. Janet Jackson got plenty of attention for her wardrobe malfunction in last year's Super Bowl, but did that sell more of her products?
Do: Test, tweak and try again.
Don't: Ask your friends or family and call it "research."
4. Leverage the evangelists. There are people out there using your product or service who would be glad to tell others about your business. If you can make them happy, they'll help you spread the word to other like-minded customers. And here's something to keep in mind: They may be using your product or service for purposes other than the ones you initially intended, so make sure you really understand what they like and dislike about your business and, more important, why. And remember, it's not about pedigree or job title--your champions can come from anywhere. At one of the startups I worked for, a hair stylist made a key introduction for our company. Friend-raising can, in fact, lead to fundraising, so make friends before you need them.
Do: Make it easy for your evangelists to try your product or service.
Don't: Discount the negatives. There may be an important insight buried within.
5. Be visible. Wasn't it Woody Allen who said that 80 percent of success is just showing up? Invisibility is not a good business strategy--if people don't know you exist, then guess what? You don't. You don't have to run a Super Bowl ad to get noticed, but you do have to be active in the communities you cater to so people know where and how to find you. Whether you have a technology business, a consumer products company or a professional services firm, you're in the relationship business. If there are businesses that target your same customer base, then find creative ways you can each leverage your contacts and databases to multiply your outreach. Best-kept secrets are just that: secrets.
Do: Put your mouth where your money is, too.
Don't: Hide in your office or behind your computer online.
6. Create extraordinary experiences. The relationships you have with your customers are based on the cumulative experiences they have with your employees, product, service and business. If your brochure or website makes one claim but the reality is very different, it's the firsthand knowledge that will be remembered by your customers, so make sure you deliver on the promises you make every time you connect with your customers. Is it such a surprise that most of the airlines are going bankrupt while Jet Blue and Southwest are profitable?
Do: Consistently reinforce your key messages in everything you do.
Don't: Forget that every employee, partner and affiliate is an ambassador, too.
7. Put passion above all else. Customers are savvy--they know when something is genuine or if you're just going through the motions. So do your employees, partners and affiliates. If you don't enjoy what you are doing, find something else to do! It's hard to compete with someone who gets up feeling excited every day and who's full of ideas about their business. To them, what they do doesn't feel like work. Enthusiasm is contagious, so determine what it is you enjoy doing and then share your gift with others whose talents may lie somewhere else. When everyone plays to their strengths, the results are superior.
Do: Work you love and believe is important.
Don't: Waste time. It's your most precious commodity.
Q: I've dreamed of starting my own business for so long, yet I can't seem to take the next step and actually get things going. What's holding me back?
A: Probably every entrepreneur goes through what you're going through before starting a business. Particularly if you have a job in a comfortable atmosphere, with full benefits and generous bonuses, it might seem ludicrous to give up what you have and start at the bottom again. Yet no matter how many perks you might get at your job, the fact is, it's still a job--and you still wonder, every day, what it'd be like to work for yourself, not someone else.
It seems apparent that your urge to be an entrepreneur isn't going away anytime soon. It also seems apparent that taking the leap would be the right move for you. No matter how difficult things might be in the beginning, one day you'll thank yourself for having the courage to start a business.
There could be other things holding you back other than the feelings of trepidation you're experiencing, however. See if any of these reasons sound familiar:
1. You don't have a lot of money in the bank. That's a very good reason to shy away from quitting your job, isn't it? But that just means you need to get a financial plan together. Consult with a financial planner who can help you map out personal and business finance goals. Some local colleges and community centers even offer workshops and classes on financial planning, usually at a minimal cost, so take advantage of them.
2. Someone mentions the words "business plan" to you, and you stare blankly. A business plan is not the be-all, end-all of starting a business. But it's pretty important. I talked to an entrepreneur-to-be the other day--someone unfamiliar with writing a business plan--and she said she didn't need a business plan because she wasn't planning on seeking financing from outside sources. But even if no one but you ever sees your business plan, it's still important. It helps you put your goals in focus and create a written plan of action for your business. It's almost like a detailed to-do list. Plus, you never know where your business will take you. You might get started and find out you need more money than you thought, and that's where that handy business plan comes in.
3. You don't know anything about bookkeeping. Go ahead and admit it--it's very freeing. Admitting you don't know everything will only make you successful later, because it means you'll have the courage to ask for help. Get all the advice and mentoring you can at this stage. There's no shame in consulting with an accountant, an attorney, a long-time veteran in the field, and so on.
4. You're not sure you have the dedication it takes to stick with it. There's a simple way to solve this problem: Don't start a business doing something you don't like. If you hate getting up early, starting a coffee shop or a bakery is not for you. If you get impatient around children, don't start a child-care center or anything else kid-related. You have to love what you're doing when you start a business, or you will not stick with it. It's no different than working in a job you hate.
5. You're afraid of selling. That's a big one, because if you're an entrepreneur, you're also a salesperson--that is, unless you figure out a way to bring a top-notch salesperson onto your team from the get-go. Chances are, you don't have the money for that yet, so perhaps a better alternative is to psych yourself up to sell. If you believe in your product or service, you'll find the confidence to sell it.
Now quit stalling, and get to work. You've got a business to start.