Running a small business is a challenge in todays world, but the rise of the internet has provided a new medium for the small entrepreneur to thrive. Both traditional and internet businesses will fail if the owner does not understand the basic fundamentals.

All businesses must have a purpose, but it needs to be more than making a lot of money. It should be more specific for example PHP program for internet applications. Once you have a purpose your business will be more focused. Begin with the end in mind. Know where you are going and you can take the next step.

Make a plan. Do you spend the day just doing random things? No you'd get nothing done! Everyone has some sort of plan on how they are going to get through the day. It is the same with a small business. Plan how you are going to start your business, what your are going to sell, how much capital you will need, and who are you going to team up with. Success comes to those who plan, and failure comes to those that fail to plan. Be specific, especially with your financial plan. Do a budget, be realistic and stick to it.

Once you have a plan its time to raise capital. There are several sources for money: you could use your savings, a second on your home or maybe a loan from your family. Many home based small businesses can be started with only a small amount of money. If you are thinking about buying a franchise or other retail business you may need thousands of dollars just to get started. Don't start ANYTHING without the financing. You will fail if you do not have up front money. Be careful not to run up a bunch of credit card debt or spend your money foolishly. When you do your plan, study your business opportunity and look for possible scams and money pits. Be careful and don't trust what you have not thoroughly investigated.

Now that you have your plan and money it is time to start your small business. Being successful takes time and hard work. Be prepared to work 50 to 60 hours a week for a few years until you get your business going. People want to believe they can just put up a web site and make millions while they lay by the beach. Sorry it just is not that easy.

But once you've succeeded there is nothing better than owning and running your own profitable small business.