Warning Signs

People who start businesses tend to focus on the bright side ofthings, a quality that helps when things are looking bad. Justdon’t forget to keep your eyes peeled for these signs of adoomed business:

• No business plan.
• No board of advisors.
• Insufficient capital.
• No exit strategy.
• Nothing backing up the hype.
• Personality conflicts.
• All offense, no defense (such as establishing a limitedliability entity, obtaining adequate business insurance and formingcontracts to protect yourself in customer, supplier and vendorrelationships).

Excerpted from Entrepreneur magazine, August2001