People who start businesses tend to focus on the bright side of things, a quality that helps when things are looking bad. Just don't forget to keep your eyes peeled for these signs of a doomed business:

  • No business plan.
  • No board of advisors.
  • Insufficient capital.
  • No exit strategy.
  • Nothing backing up the hype.
  • Personality conflicts.
  • All offense, no defense (such as establishing a limited liability entity, obtaining adequate business insurance and forming contracts to protect yourself in customer, supplier and vendor relationships).

Excerpted from Entrepreneur magazine, August 2001