Score, the retired executive counselors to small business, reports the findings of a Small Business Administration study:

- There were 637,100 new businesses, 560,300 business closures and 28,322 bankruptcies in 2007.

- Two-thirds of new employer firms survive at least two years, 44 percent survive at least four years, and 31 percent survive at least seven years.

SBA found that the statistics did not change much from industry to industry.

While these figures belie the gloom and doom that we usually hear (the myth that 95% of small businesses die within a few years) it still means that if you're starting a business this year, you have less than a 1/3 chance of still being in business in 7 years.

There is hope. You can improve your chances of success by following a few steps:

1. Are you right for starting your own home business?

If you can't sleep nights because you don't have a regular paycheck coming, you might not want to start a home-based business. The fact is, there are very, very few instant millionaires in home Internet businesses. Most of the IM millionaires started out just like you and I and worked hard for anywhere from six months to five years to actually make a full-time living online.

Business is about making money. If you don't enjoy making a profit, then either develop a hobby rather than a business, or go find a job. If you don't like marketing and if you are not at least willing to learn how to put up and manage technology, same thing. You are probably not suited to a home-based business, or at least not an online business. If you don't like working with people, ditto. Most home-based businesses require relationship building and excellent customer service in order to succeed.

2. Research the things you are knowledgeable and passionate about, and start your business based around your marketable passions.

If your passions extend to a really large market, such as golf or dogs, you will need to research micro-niches within your market area to concentrate on. It is unwise to go head to head with the big advertisers in a major market niche. There are already too many web pages at the market level for a newbie to rank well in search engines or to afford the cost of pay per click advertising.

In a micro-niche, however, selling a particular type of golf clubs or balls, or advertising for dog-sitting services throughout your state, you may well have a viable business with a sustainable and reachable clientele. Dig deep into your niche until you find a topic that is both profitable and interesting to you.

3. Develop a business and marketing plan, and establish goals and objectives for at least your first year in business. Aim at goals that are realistic and achievable, but that stretch you. Whatever you decide are your limitations, will be your limits by default. You don't want to set these too low.

Get some help for your business plan from SCORE. Their services are free. Their advice can be invaluable in setting up accounting and other record keeping systems, going after funding, and establishing a corporate entity. They'll critique your business plan and help you to stay on track with your timeline.

4. Focus is everything

It is so common for new online marketers to get distracted with every new opportunity that comes down the pike. You need to concentrate with total focus on the one line of business and niche that you select in the first place until the business is either a success or a clear failure.

Practice good business habits. If it wasn't appropriate to spend all day checking email while working at someone else's business, then it is certainly not appropriate in your own. Plan on saying goodbye to TV, video games, reading and whatever else distracts you until your business is past the start up phase.

Concentrate on those activities that make you money: targeted marketing, researching affiliate products and developing products of your own, writing sales copy and articles and relationship building. As soon as possible, farm out the activities that are administrative and organizational, such as the bookkeeping. Outsource other activities you are slow or weak at, such as web design, copywriting, or customer support.

5. Be thrifty

It does not take a lot of money to start an online business. Less than $100 in the first month or two should do. A web domain name can be had for $8. You can start with free advertising, and it is not always necessary to even have your own website to start. Even many products and services are available for affiliates to sell online without spending money on the product, or at least not much money. Generally, one affiliate program with a paid membership site and one domain name is all that is needed for most online business start-ups. There may be one or two small monthly membership charges to pay ongoing.

6. Take action

One of the biggest reasons for online marketer failure is a failure to take action. People get caught up in learning everything there is to know before they actually try to sell something online. They are afraid of failure. They're afraid of scams. They need everything to be perfect. They get confused and can't decide what to do. They go through a failure or two and get frozen in place.

Yes, there are scams out there. Yes, you'll probably experience a number of failures before you hit a home run. That's normal and what nearly everyone goes through. Just...

7. Don't give up

You are not a failure unless you give up. If you need to make money, go back to work part time and figure it out on your hours at home. Get a second job.

If you are meant to be in business, and you know it in your gut, just don't give up. Learn from the mistakes, retool, tweak, or go on to an alternate plan.

It is almost guaranteed that if you follow a system that has been successfully replicated, and the market it not too over-saturated for that particular product or niche, you will be able to succeed. You may need to change your marketing strategy or narrow your niche, but you can make it work over time.

Be flexible. Accept the set-backs as learning experiences, and find a way to be successful. If you don't give up, and you learn from those set-backs, you will be successful. Guaranteed!