One half of all the businesses in this country are worth less than 10,000 dollars. Only 5 per cent are worth over 125,000 dollars. Among other concerns, close to 20 per cent will have discontinued by the end of one year. With high hopes, new businesses will come along, but many of these, too, will fade in time. There are 8 major pitfalls to avoided. These are one, lack of experience. You may know the business but have very poor business skills. Second is lack of money. You must have enough capital to remain sound. Third is the wrong location. You must have a location that is convenient for customers and gives you room to grow. Fourth is too much capital going into fixed assets. Expanding too quickly can leave your business unprotected. Fifth is poor credit policies. Be sure you can later collect before extending credit. Sixth is taking too much money out for yourself. If profits are low, the family will have to tighten up. Seventh is unplanned expansion. Be sure as you expand you can work with other managers in your employ. Lastly, eighth is having the wrong attitude. Lack of plain hard work and attention to your business can be its undoing. To combat these pitfalls you should plan, keep good records and look at them (especially the balance sheet), investigate, overcome limitations by studying, get professionals and suppliers to help you. Above all, fit the operation to your ability.