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New idea risk. Many aspiring entrepreneurs think they must come up with a novel idea. That’s foolish. Why be a guinea pig for an untested idea when there are plenty of proven ideas that you could implement in a different location? Most new ideas fail, and you probably don’t have deep enough pockets to endure even one failure. If you want to be innovative, don’t worry. Even the most tried-and-true business provides plenty of opportunity to innovate, for example, in advertising, décor, motivating staff, and theft control.

Trend risk. Today’s hot idea is often tomorrow’s has been. Cigar shops were smokin’ in the 1990s and burned out by 2000. You want a business that has stood the test of time.

Large investment required. Last I checked, you weren’t rolling in dough. If you’re not and your business requires a large investment, it means you’ll have to mortgage yourself to your eyeballs. If your business gives you unexpected problems (and they usually do), even for a short time, you could find yourself out of money and into overwhelming debt. Fortunately, many good businesses don’t require a large investment: especially home-based businesses, service businesses, internet businesses, and cart businesses. (See below.)

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