In good times, lots of people are tempted to start a business, when they see how well other businesses are doing - they are “willing entrepreneurs”. In bad times, quite a lot of people who start a business do so out of necessity - they have lost their jobs and need to pay the bills.  Starting up on their own is the only option they have. For many of these "forced entrepreneurs", this can be a very scary time.For both groups, the key thing is, to ensure they follow some simple principles to ensure they minimize the risks and maximize the opportunity.

Here are 10 tips to follow for start ups.

1 - Don’t borrow money if you can help it. I learned a long time ago, “you can’t go broke if you don’t owe any money”, so if possible, keep things on a low budget, don’t buy it if you can’t afford it.  Do small marketing campaigns and test how they work before spending any more money.

2 – Do something you know and have contacts in that industry. It’s much easier to start a business in an industry or craft that you have experience of and also have some contacts.  If you “stick to your knitting|”, you have a greater chance of success.  Having said that, some people start a business as a life changing decision to do something entirely new, and to get away from the job or industry they worked in, but hated.  That’s fine, just be aware that anything completely new to you will have a learning curve and it may be a while before you are earning.  On the flip side of this, if you start something you are passionate about, you are much more likely to succeed.

3 – Start local if possibleIf your business requires face to face meetings or on site work, then try and start local to keep costs down.  I’ve seen new businesses get carried away, spending lots of marketing money on advertising and trade shows that are too far to service at first.

4 – Call in all favours!Ask EVERYONE you know to help you, give you referrals or pass you leads.  Don’t be too proud to ask.  You want to get off to the best start you can.

5 – Don’t give credit if you can help it. In almost all businesses, “Cash is king!”.  If you don’t need to give credit, then don’t.  Tell people you are new, and can they help by paying on invoice or pro-forma.  Offer a small discount for cash up front.  Believe me, while most businesses are ethical, there are companies out there that will take advantage of a newcomer to get work done without paying for it.

6 – Give outstanding service and ask for a reference. Of course, you always should, but on day one, you are looking for clients to give you great referrals to get other work.  Write or email straight away when you finish the job, possibly with a well worded survey on what they thought of your work.  Many will wax lyrical about how good you are, (because it is actually quite rare to find supurb service these days!).  Ask if you can use their comments in your marketing and then do so.

7 – Join local networks. Join as many local networks that are relevant to your business and try and give reciprocal work to members.  Don’t be shy about promoting your business at meetings.

8 – Create a business plan  You may not revisit it once you start, but the exercise of doing one helps you to clarify your thinking, pricing and strategy.  I’ve done many many business plans for people and in doing so, found that the business model they intended to use simply didn’t add up.  It may also throw up a few alternative strategies that could be a lot more profitable.

9 – Don’t be afraid to make changes if things aren’t working. It can take a little time to get to critical mass – and if you have don a business plan, budget and a cash flow forecast, you will know this – but also be  aware that what you are trying to do, may not work or there may be insufficient demand for your business to be viable.Don’t be like a “rabbit in the headlights”, scared to make a decision or change anything.  If what you are doing isn’t producing any business, adjust and keep adjusting until it works.  If it isn’t working, stop before you get out of your depth in debt or other financial commitments.  By fine tuning, you should find that you eventually reach a stage where your product or service is valued and you generate business.

10 – Get a mentor. There are lots of successful business people out there who would be happy to offer you a little advice.  Don’t expect something for nothing, but possibly taking someone who you feel can help out for a (not expensive) dinner as payment should be suffice.  Many will do it for free, just wanting to help.  While all businesses are different, they also have a lot in common.  Most experienced business people will have come across a wide range of issues in their time.  By definition, the older and more experienced a person is, the more likely they are to have had to deal with difficult issues.  That said, if you want advice on your latest teen fashion line, you might be better talking to someone of that age.