Over many years, I’ve heard that the number one reason for a new company’s failure is lack of capital. I’m not sure I agree with that based on my experience. Being well capitalized is wonderful – if you can afford it. But many small companies have been started with a great idea, passion and no money – but they almost always have great marketing.

However, too many people have the idea and the passion (and sometimes plenty of money) but no clue how to actually market and sell their idea, product or service. They believe so much in what they are doing they feel like they can “will” their way to success. And, sometimes if you have enough money and are willing to lose enough learning, you can do that.

I suggest you do things a little differently. If you’ve never actually sold anything and if you haven’t implemented successful marketing; study and get some help. Spend some time and money before you pull the trigger on opening the business. Visit successful business owners and interview them. Ask them how they got to where they are today. Ask them how they learned about sales and marketing and what they would have differently. Buy Seth Godin’s books. Look at Duct Tape Marketing’s Blog. Read my Blog.

You probably won’t start your new company without some legal and financial advice. Promise yourself you’ll get some professional sales and marketing advice too. You’ll grow more quickly and with fewer growing pains.