Starting a business feels exciting. It’s like turning your dream into reality, and you hope that people will love your product or service. But once things get real, you start to see the challenges and risks involved. The truth is, most new businesses don’t survive. Around 80% fail within the first 18 months. Many end up with big loans or tax problems, which can cause stress for both the business owner and their family.

But this doesn’t have to be you! Although there is never a guarantee of success as an entrepreneur, I can speak from a track record of my own clients’ experiences and the specific factors that enabled them to rise above the odds. Based on my experience helping develop small businesses, I have compiled a list of practical tips that will help you succeed in business.

1. Choose an Industry Where You Have Practical Experience

When starting a business, choose an area or industry where you have extensive practical experience, not something that you happen to love or are passionate about. These are not the qualities required for entrepreneurial success. Based on my work with over 3,000 clients, I can confirm that this is the most important factor in whether your business/startup succeeds.

1. Be Honest About Your Product or Service

Be honest with yourself and admit if your product or service is not good. Self-awareness is key to your success because it can help preserve your sanity and finances.

1. Your Product Should Satisfy Your Customers’ Needs

Your product or service should satisfy people’s needs or desires, NOT yours. Confusing whose needs or desires you are after will almost always lead you astray in business.

1. Have Funding Before Your First Day in Business

It’s tempting to think you can survive on your great idea until the customers start pouring in, but unfortunately, this is extremely rare. You must have at least an entire year’s worth of finances readily available to fund your first-year operations and marketing to hold you over until your product or service starts gaining traction in the market.

1. Establish a Clear Competitive Advantage

Have you established an undeniable competitive advantage? Most startups fail on this point. When I ask “What is your competitive advantage?” the answer is usually a long pause, followed by something like, “Well, I really have to think about this some more.” This is bad. If you can’t readily tell me your competitive advantage, you’ve just confirmed why you aren’t ready to be in business.

1. Regularly Review Your Expenses and Profits

You must regularly examine your expenses and review the state of your profits. Checking the health of your business must be done based on facts, not emotional insight. Without relying on real numbers, your financial decisions will be emotionally driven. This is a recipe for failure!

1. Commit to Lifelong Learning

Accept that in business, you’re never totally knowledgeable, and learning is always necessary. No matter how smart, experienced, or lucky you’ve been so far, if you stop learning, you will at some point trip up and make mistakes. Staying one step ahead in your business means you must always continue to learn and use this knowledge to experiment and create new ways to develop a better product or service. If you don’t, your competitors will!

1. Invest in a Good Attorney and Accountant

Don’t miss out on hiring a good attorney and accountant. I’ve seen entrepreneurs try to navigate the legal and accounting areas themselves, and I can tell you that this is not smart. Find professionals who will give you one-on-one time without rushing you out of their office. Use the time to learn and understand your legal and tax obligations because failing at these can completely wipe out even the most successful businesses.