Do: Have a business plan. Optional:
Wearing grey suit while you write it.

Jim Mishefske, director of UWEC’s Small Business Development Center

Do: Finish it. Take your time to address every point, especially the financing portion.
Do: Seek help and have others look at it. There are many free resources in the area.
Don't: Over-estimate your revenue or product, nor under-finance.

Cindy Graffeo, business assistance specialist for Eau Claire’s Economic Development Division

Do: Work with someone and do your research. We have so many organizations in the area to help prepare your business plan. Use them. Have it reviewed, reviewed, and reviewed again. Back up and justify every number you come up with.
Do: Know who you’re marketing to and who your client base is.
Do: Invest lots and lots of time, energy, and resources into good ideas.
Do: Involve local economic organizations and other expert organizations early and often. Create partnerships.
Do: Surround yourself by the people who know the things you don’t know how to do. Entrepreneurs do not succeed by themselves. Know what you can do, and outsource what you can’t.
Don't: Over-estimate revenue. Don’t guess, be conservative in estimates, hope for the best and plan for the worst.

Bob Krause, owner of Invisible Inc., former president of South Barstow Business Improvement District, and a member for Chippewa Valley Angel Investors Network

Do: Come in prepared, and have a business purpose to what you’re doing. I recently had an individual come in very emotional about what they’re doing and weren’t very realistic of the failure or success of their business. Separate the emotion from the facts. Find people who will be honest with you, and get good, objective feedback.
Do: Take time to understand all the forms and government regulations involved. I’ve been in business since 1984, and I still get stuff that makes me scratch my head.
Don't: Give up. Ever.
Don't: Under-finance. Understand the capital required. If you’re new to business, the reality is there’s speedbumps out there.

Mike Dieckman, vice president & loan officer of Wisconsin Business Development’s Eau Claire office

Do: “Quality” is better than “quantity.” A lot of business plans go overboard on a few aspects of the business – usually what the entrepreneur knows the most about – while missing other very important aspects of the business. It’s much better to err on the conservative side than to be unrealistic. A plan loses a lot of credibility if the projections reflect big profits in Year 1.
Don't: From strictly a financial standpoint, don’t go into business under-capitalized. The expenses will come before the revenues, and business owners have to understand their working capital needs, especially during the first couple years of business. It’s important that entrepreneurs understand their shortcomings and surround themselves with advisors who can assist in these areas (e.g. a good small business accountant).

Karman Briggs, manager of the Business Center for Western Dairyland Community Action Agency

Do: Actually have a business plan with realistic financial projections, not just a narrative. Starting a business is always risky, but it is about taking calculated risks and eliminating as many unknown variables as possible. Meeting with someone who is in crisis mode with their business is never fun – especially when you know there were things that could have been done to prevent the crisis.
Do: Be completely forthright with your business counselor or banker.
Don't: Be low on operating cash to keep the business running during those first few months of growth.
Don't: Decide you are going to do what you want to do, regardless what the market may bear. Sometimes entrepreneurs are so excited to start the business of their dreams – it’s what they’ve always wanted to do and they don’t want to consider anything that may deter them. It’s usually as simple as looking at how many services/products you can provide, what customers will be willing to pay, and if that leaves enough profit (after expenses) to support you and your family. I may really like baking, but if I have to charge $10 a cookie to pay my mortgage, it probably isn’t going to fly.

Barb Rolland, certified counselor for SCORE

Do: Be realistic about money and cash flow. This is a common, and very serious, error. And having some knowledge of bookkeeping is important.
Don't: Underestimate start-up costs.