Many people dream of owning their own business, they dream of running their own life and being their own boss. They're looking for independence and self-expression. They're planning for the future by seeking growth and monetary gain. They also may be fooling themselves.

Most of the innovation in today's business world comes from owners of small businesses. In fact, studies show that the small business sector has generated the majority of new jobs in our economy. We live in an entrepreneurial society which has given small business owners increased status and esteem. However, despite this allure, prospective buyers should be wary of pie-in-the-sky expectations.

There is a romance to small business ownership that promises endless freedom and wealth, yet much like buying a house in the country, there's more to the experience than meets the eye. Before making a major investment, prospective buyers are well-advised to place themselves under a psychological microscope, and ask themselves some very important questions:

1. Do I have a strong marriage?

Buying a business often leads to a change of lifestyle, such as moving from a big-city corporate environment to a small town. It means different hours, different friends, and different emotions. In many cases, husband and wives work together to build the new business, which calls for a strong relationship and a cooperative spirit.

There are men and women who sincerely believe that buying a business will cure their marital problems, but the opposite is true. Small business ownership can create a serious strain on family relationships. There are ups and downs that have to be managed and endured, and without the understanding and dedication of both partners, the business will not survive.

2. Am I Financially Prepared?

Purchasing a business usually requires loans, leveraging and major capitalization, but returns on the investment may be slow to materialize. In the beginning, profits are usually poured back into the business, making the first two or three years financially lean. Buyers sacrifice a regular salary in the short run, for equity and satisfaction in the long run.

Most small business' failures occur within the first five years of operation, and inevitably, undercapitalization is a major cause. Smart buyers are careful not to risk every cent they have. They develop long-range business plans and they learn to read financial statements. Basically, they are comfortable with numbers.

3. Do I have Good Instincts

The most successful business owners are people with gut reactions. They know how to market, and they know how to grow, but they're not bogged down in figures.

They understand all the numbers, but they don't over analyse. They're able to rely on their instincts and capitalize on their opportunities.

Owners of prosperous businesses see beyond the ledger. Though it may sound obvious, they understand what kind of business they own. They have an innate feel for their products or services. Following this line of reasoning, a hardware store doesn't sell nuts and bolts, it sells self-sufficiency and hobbies. A country inn doesn't just provide rooms, it provides history, entertainment and a relaxing environment.

4. Am I willing To Make a Commitment?

Owners of small businesses are likely to work harder than they've ever worked before. In the beginning, they should be prepared to work 60 to 80 hours a week, possibly foregoing vacations until the business is well-grounded. They need to be goal oriented and self-disciplined, willing to pitch in and finish the task.

Most small business owners have a sense of a mission. They're able to integrate their professional life with their personal values. They generally consider their business to be their creation. They are highly motivated and responsible individuals who realize that the overall success of their business depends almost solely on them.

5. Am I A Natural Problem Solver?

People in a corporate environment are usually surrounded by a supportive staff, including financial, legal and marketing specialists who are likely to make decisions. As a result, many executives and middle-level managers are enmeshed in a narrow specialty, and operate in somewhat of a vacuum. Because they lack general knowledge, they may be poorly prepared to handle problems.

Small business owners have to look at the total picture, seeing problems as opportunities, rather than pitfalls.

6. Am I Resilient?

Let's face it, as long as you're in business, you're going to face management crises. It's a given. You're going to have setbacks, and if you want to stay in business, you've got to be able to regroup and bounce back. In fact, your ability to manage yourself out of holes or difficulties may very well mark your long-range success.

One of the benefits of owning a small business is the ability to make quick decisions. You don't have to go though a corporate hierarchy to try a new approach. You can be closer to your customers and more readily understand their needs. This flexibility allows you to change gears, tap new markets, and essentially weather the storms.

7. Am I An Independant Thinker?

Entrepreneurs tend to be mavericks. They march to the beat of a different drummer, even if other disapprove. They have the ability to see potential in what might appear to be run-of-the-mill business. They're willing to take risks in order to reap the rewards of their labour and imagination. They make things happen.

If you leave the corporate world to buy a small business, you'll have to remove your golden handcuffs. The stereotypical corporate worker longs for benefits, contracts and guarantees, none of which are available when you run your own show. There's no build-in safety net in the world of small business ownership; you're all on your own.

8. Do I Have a Healthy Ego?

Small business ownership requires tremendous self-confidence. You have to have the courage in your convictions. Rather than be fraught with doubt, you have to feel comfortable with your decisions. You have to love your business, and know where you want to take it. Small business owners have to look at the total picture, seeing problems as opportunities, rather than pitfalls.

This does not imply you should be arrogant or unbending. If you have a healthy ego, you'll be willing to listen to your employees and customers without feeling threatened. You'll be able to weigh all the information you receive, and then draw your own conclusions.

9. Am I Willing To Make Mistakes?

While virtually all business failures result from poor management, that doesn't mean you'll never make mistakes, especially if you're inventive, and your business is growing. If you're running your business well, you're likely to be right about 80 percent of the time, which isn't bad.

If you have erred in judgement, you must be willing to take full responsibility for your mistakes, without pawning off the blame on others. You must face the problem squarely and calmly, without pushing the panic button. Remember, you're striving for excellence, not perfection, and if you're willing to learn from your mistakes, your performance will improve in the future.

10. Do I Have An Open Mind?

Wise entrepreneurs avoid isolation. They have a broad perspective, choosing to look at life through a wide angle lens. They realize that changes in our society will affect their business, even if the business is small. As our population ages, traditional values shift to the right or left, new markets, new products and new services must be available to the public.

If you're a savvy business owner, you'll never pretend to have all the answers. You'll avoid absolutes, and you'll be open to new ideas. You'll realize that just like death and taxes, change is inevitable.