New York (CNN/Money) - Starting your own business is the original American Dream.

But dreaming about this endeavor is one thing. Actually doing it -- successfully -- is quite another.

More than 600,000 new businesses opened their doors in 2000, according to the U.S. Small Business Administration. That year 550,000 businesses in turn closed, with just over half successful at the time of closing.

"Nine out of ten people who consider starting a small business shouldn't," said Jim Schell, who is a co-author of Small Business for Dummies and a small business "addict."

Over the course of his 40-year career he has started seven small businesses, one of which grew to 200 employees before he sold it. "I don't mean to sound like Dr. Death," he said. "It's just that it's far worse for someone to go into business who shouldn't than for someone who should to miss an opportunity."

Before you set out to turn your idea for a small business into a money-making (or losing) enterprise, you'll want to look past the "dream" stage of business and ask yourself whether you're prepared to handle the heartache and the heartburn that comes with being your own boss.

"Good ideas are a dime a dozen," said Schell. "But good people to turn those good ideas into successful business are not."

As an example, he gives Mrs. Fields cookies. In his opinion there are hundreds of grandmothers who can bake a better cookie than Debbie Fields, but few who could turn their secret recipe into a flourishing business.

More Money Dreams • Dream Cars • Living their dream retirements

Successful entrepreneurs are a rare breed. They are passionate about what they do -- they have to be to sell their products and motivate employees. They have a work ethic that borders on obsession, devoting early mornings, late nights and weekends to their ventures. They are comfortable in many roles, whether it's studying financial statements or vacuuming their place of business.

Something else to consider is your experience. "You can increase your chance of success dramatically if you go into a business you already know," said Rosalind Resnick, president and CEO of Axxess Business Centers. Prior to founding Axxess, Resnick co-founded direct marketer NetCreations out of her home, took it public in 1999 and sold for $111 million in 2001.

You've got a great idea for a small business, or so you think. But before you open your doors for business, you'll need to make sure potential customers think the idea is as good as you think it is.

A business plan is the best way to establish the viability of your idea and anticipate problems. If you're not trying to sell your idea to investors, a business plan is not mandatory. But, it's in your best interest to do one anyway. "You don't need a map to get from Oregon to Minnesota, but you'll spend less time and gas money if you have one," said Schell.

(For information on how to write a business plan, visit the U.S. Small Business Administration.)

There is a laundry list of other details that will need to be taken care of before you can open for business. For one, you'll need to determine the type of entity under which you'll operate.

"Typically entrepreneurs are so eager to get started that they forget to incorporate," said Resnick. "What they don't realize is that if you don't incorporate right away someone could sue you and take your personal assets."

Trademarks are another detail that's often overlooked. "Just because you've incorporated or have domain name doesn't protect it, and the last thing you want is to have to change your name after you have built a brand," said Resnick, adding that insurance is another major consideration.

By now it may be sinking in that starting a small business is going to cost money. Even if you plan to run it out of your home and with very little capital, you still face up-front expenses, such as the cost of incorporating or setting up a website.

When raising capital, the first place you should look is your own savings and investments, according to Schell.

If your savings aren't enough, the next step is borrowing. But don't expect to walk into a bank and walk out with a loan. With very few exceptions, banks don't give out loans to startups.

As an alternative, consider tapping your home equity. Rates for home equity loans and lines of credit are extremely low, and in most cases interest is tax deductible. "It can be a low-cost source of finance, but be careful that you don't take so much debt that it becomes a crushing burden," warned Eric Tyson, Schell's co-author on Small Business for Dummies and an expert in personal finance. Indeed, you don't want the double-whammy of losing your home and your business.

Another popular route is raising funds through family and friends, either by simply borrowing the money or selling "shares" of your business. "Just be sure everyone recognizes they could lose all of their money," said Tyson. "Also, you should have a heart-to-heart talk about what level of influence and control they expect to have."

Credit cards are another option. This advice may fly in the face of everything you've learned about managing your finances. But the fact is that many successful businesses have been funded with plastic. Unlike clothing or gadgets or expensive dinners, the charges related to your business are, after all, an investment.

If you do all of your homework, have the heart of an entrepreneur and, let's face it, are blessed with a bit of luck, you may not be stuck with this debt for long. At the very least, you can roll it into a more traditional loan once your business shows some promise.