Do the math

Estimate your start-up capital, the amount of money you will need to get up and running, and your working capital, the amount you'll need to stay afloat until you become profitable. This way you will know what you can afford to spend your money on at first and what can wait until later, helping you to avoid running out of funds too soon. Meanwhile, try paying off as much personal debt as you can. Its tough to make two car payments, make a mortgage on an over leveraged house, pay off student loans, and chase a dream at the same time, says Rusty Meador, who early in 2009 turned his passion for woodworking into Beach & Barn, a home-restoration company in Wilmington, N.C. Being debt-free makes starting a business more fun and less stressful, he adds.