The Small Business Administration (SBA) defines a small business as an "independent business having fewer than 500 employees". Currently of over 26 million business in the U.S., 99.7% are small businesses, employing over half of all private sector employees. They are extremely important to our economy, creating 60-80% of net new jobs annually over the past decade.

41% of all high tech workers are employed by small businesses. 53% of small businesses are home-based and 3% are franchises.

Unfortunately, there are about as many businesses that close each year as open (about 600,000). Here are 5 important steps you need to take:

1. Create your business blueprint before you begin. A well thought out plan, including a SWOT (Strengths, Weaknesses, Opportunities, Threats) will help you more clearly understand your market advantages and challenges ahead.

2. Do what you know. Don't try to open a business in a service area or industry where you have no experience. Work in a similar business to gain wisdom, bring on a partner with experience, or purchase a franchise with a strong support system and proven record of success.

3. Forecast your month-by-month budget before you open your business. Robert Kiyosaki says that "a successful business is built on paper before it ever opens its doors."

4. Avoid loans or credit to start your business. It makes everything harder down the road ... and will make you sink even faster.

5. Seek a successful business owner or coach (preferably one who is both) to mentor you as you move forward. It's lonely "at the top". Make your job much easier by bringing alongside a seasoned veteran to help guide your decision making.