For many, starting a business is part of the American dream. But not everyone is ready or suited to launching a business, and if you're not, the dream can quickly become a nightmare.

You might have a great business idea, but if you're not being realistic about owning and managing a company and aren't prepared financially -- in other words, you don't have enough money -- your chances of success are slim.

Most folks will tell you that if you're thinking about starting a business, your first priority should be writing a concise, well-thought-out business plan. While that's good advice, I would suggest there's a step you should take before you start working on a business plan. First, you should take an honest -- and we do mean HONEST -- look in the mirror. Do a self- assessment to determine if business ownership is right for you at this time. Ask yourself some hard questions and give yourself some honest answers. You'd be surprised how taking this step increases the chances of success for your future enterprise.

Here are a few questions to get you started:

* Why do I want to have my own business?

Many people think they will be their own boss and call all the shots only to find out that their customers really run the show.

Some people think they will start a business as a form of self-discovery or self-expression. As nice as that may sound, customers tend to be much more focused on how you can help them with your products or services and not on how you are discovering and expressing yourself.

* How is my credit history? How much money do I have to invest?

I hate to be the one to tell you that your grandma was right: "There is no free lunch." Is your credit good? Your personal credit will have a major impact on your ability to finance your business.

I also hate to tell you that your grandpa was right, too, when he said, "If it sounds too good to be true, it is not true." When someone starts talking about starting a business with no money, you should stop listening. You will need to have some of your own money to invest in your business.

* Am I and is my family ready for the sacrifices needed to run a business?

Owning a business can be a wonderful experience, but it takes effort and sacrifice. Are you prepared for the long, sometimes lonely hours? Are you ready to make the hard decisions? Will your family support you? Have you explained to your family the financial risk involved?

Such self-assessment questions will also make it easier for you to write a good business plan.

I wish you success and happy business!

Rafael Cruz, a certified business analyst with Florida Atlantic University's Small Business Development Center, writes The Miami Herald's business start-up column, Launch Pad. Every two weeks, he will bring you a new chapter in this step-by-step guide to starting a business.

A marketing and service-industry expert, Cruz worked for Fortune 500 companies and private industry before joining the SBDC in 2001.

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