Make a list of all your variable expenses by writing down every expense for a month - even small purchases. Use a small note book or other informal method to track your spending. This is very important because it's best way to understand your current spending behaviour. Get receipts for all purchases - especially those you make with cash. You may be surprised at how much you spend in certain areas.

List your monthly income:

Now that you have figured out your expenses, write down your monthly income after all taxes and deductions. Write this under heading: Monthly Income. Make sure this figure reflects total take-home pay for your household after all taxes and deductions.

Now compare expenses to income: One of advantages of doing a comparison of expenses to income is that it provides a quick reality check. If you are spending more than you're bringing home every month in income, you have a deficit. If you're spending less than you're bringing home, you have a surplus.

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Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all responsibility for success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will business affect your family? The first few years of business start-up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in short-term.

Studies have shown that entrepreneurs are persevering and not easily defeated. They thrive in a challenging environment and have a tremendous need to be in control. They turn diversity into opportunity. They are risk takers. They welcome responsibility, and they are willing and able to make decisions.

Moreover, successful entrepreneurs are patient and able to wait out sometimes slow beginnings of a business. They also are able to learn from their mistakes, trust their own judgment and have an optimistic outlook.

It's obvious: you have to love your work. And if you choose a business that blends with your personality, those extra hours you will have to work won't seem so bad. The key is to identify what you enjoy doing most and then find a business opportunity that makes use of your skills and interests.

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