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In a perfect world, starting a small business would be risk free, but just as with everything else; the degree of risk determines the value of the reward.

According to the National Commission on Entrepreneurship, at any given time, 6% to 9% of the United States adult population is involved in planning for a new business. Most of these aspiring entrepreneurs, they say, will start a *Lifestyle Business* * primarily providing employment to themselves and their families. The balance will find themselves in *Entrepreneurial Firms* * those growth companies that, according to the NCE, created two-thirds of net new U.S. jobs in the 1990s.

Both are fraught with risk * and potential reward. Ask a small business veteran about the risks, and three likely come to mind: employees, inventory, and accounts receivables. These are both the bad news and good news of business. In the audiobook, *Sound Advice on Small Business,* author Jim Schell says, *The bad news is that they*re a headache to manage, but the good news is they exert leverage.*

What business would Schell, a seasoned entrepreneur and co-author of *Small Business for Dummies,* start if he had it to do all over again? With his tongue planted firmly in his cheek, he says in a perfect world it might be any business without employees, inventory, and minimal accounts receivables. Seriously, though, Schell says, *Without [them], you can only grow so far, so big. With them, the world is our oyster.*

Jim Schell offers advice to entrepreneurs on managing a small business each week in the free audio newsletter from What's Working in Biz, http://www.whatsworking.biz/full_story.asp?ArtID=92