Ask Doug & Polly: Starting a business is risky but follow these four tips to maximize chances for success | Business News [Video]

BY DOUG AND POLLY WHITESpecial correspondents

QUESTION: I’m contemplating starting a business. I understand that most startups fail. Can you tell me why startups typically fail and how I can avoid the pitfalls?

ANSWER: The short answer is that most new businesses fail because they don’t generate sufficient revenue to sustain themselves.

Admittedly, there are other reasons that startups don’t make it, but in our experience, this is the most frequent culprit.

Starting a business is risky, and the odds are stacked against you.

Maximize your chance for success by following each of the tips below. As you think through each of them, be brutally honest with yourself.

In this case, self-deceit can be deadly. It can often be beneficial to have an unbiased third party review your plans.

Make sure you engage someone who is willing to tell you things you don’t want to hear. Coming up short on any one of the action steps …