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Many people, particularly recent college graduates, dream of owing their own businesses. Although such ventures are often exciting and profitable, the new entrepreneur should thoroughly investigate and plan the situation before plunging in. The first step should be to assemble a board of advisers, including a lawyer, an accountant, and an insurance representative. These individuals can provide valuable information and counsel. Securing the necessary licenses and permits is also a precondition and many require research to determine what is necessary.

Most successful small-business owners have considerable experience in the field working for others before they become independent. They also begin with substantial financial backing and a good location. Renting space may be preferable or necessary at the start, but the lease on the building must be examined carefully before it is signed. The new owner should be thoroughly familiar with the market and the competition. A person who wants to buy an existing business can often learn the history of the company and its prospects from the owner’s records. Once the business gets started, accurate and complete records should be kept to monitor the company’s progress and profits.

Financing may be the most difficult step for small-business owners. They may rely on their own savings or borrow money from a bank or the Small Business Administration. Some suppliers will sell merchandise on credit, and manufacturers may be willing to finance the purchase of equipment. If the new business is a corporation, the owner may choose to sell stock.

Once the new business is started, the Small Business Administration is a good source of advice. Several of its programs are designed to help new owners with the advice and expertise of retired executives. A nearby university or trade association may also help owners locate local sources of help.

New business owners often report that they work long, hard hours but find the experience extremely satisfying. The realization that their efforts will produce actual results in the form of profit, success, and pride can be quite motivating. Those who have worked for others enjoy the opportunity to make decisions and follow projects through to completion. Many report that hard work has never been so enjoyable before. Careful research, investigation, and planning at the outset do not guarantee success, but they provide a good foundation for the new small business and its owner.
21. The main idea of the passage is about _____________.
A. the history of the small business
B. how a small business works
C. tips on how to start your own business
D. the best way to build up a profitable business
22. Which of the following advisers is most necessary before you begin?
A. A retired executive.
B. A bank officer.
C. A lawyer.
D. A professor of economics.
23. The article indicates that most successful small-business owners are __________.
A. recent college graduates
B. experienced in the field
C. financially secure
D. new entrepreneurs
24. One advantage of buying an existing business over starting a new one is that _____________.
A. it minimizes the competition
B. it has records readily available
C. it is cheaper
D. it already has may customers
25. New business owners may avoid potential problems by _____________.
A. hard work
B. selling stock
C. buying on credit
D. careful planning

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