Most people open a small business with the hope that it will eventually make them wealthy, provide freedom from a 9-5 job, and provide the opportunity for one's children to take over the family business. Unfortunately, most small business owners soon realize that it's not quite as easy as renting space, buying a sign to hang out front, and waiting for the profits to roll in. Owning a small business can often result in dramatic financial losses that can handicap an individual for many years. In order to ensure that you do not become one of the thousands of small business owners who've lost their business, follow these three simple guidelines.

1.Start a business that uses your existing skills

Think about the type of business that fits your existing set of skills and experiences. For instance, if you've spent the last 10 years working as a baker at a local restaurant you probably don't want to think about opening a hardware store. Now, are there lifelong bakers who've opened successful hardware stores? I'm sure that there are. However, your rate of success is very likely going to be small.

2.Start small, grow slowly

One of the biggest mistakes that new small business owners make is the belief that they must incorporate all of their great ideas into the business from "day one". Remember that you are in business for the long-haul and that you do not need to sink all of your financial capital into an expansive product line from the beginning. Think about how many of the existing automobile companies began. Do you think that they started business by releasing an entire product line at once? Of course they didn't. Most of them started by offering one or two different vehicles and then expanded the product selection once the opportunity presented itself. There's always plenty of time to grow!

3.Constantly examine your ideas and focus

Even the largest and most successful businesses must occasionally reexamine whether their current product focus and strategies are still working. The one constant in business is that the environment is always changing. Today's "hot item" is tomorrow's bargain bin special. Make sure that you always continue to seek out new ideas and monitor your competition to see what they're up to. Make sure that your business remains flexible enough to always react to changing trends.

Using the steps listed above, you can ensure that you give your business the fighting chance it deserves. Obviously, there is no guarantee that you will be successful, but you can certainly tip the odds in your favor.