Working for yourself can bring many rewards, but it also comes with many challenges. Take a look at the questions below. They can help you decide if the entrepreneurial route is right for you.

Are you willing to take risks? Going into business for yourself means giving up many benefits (such as health and dental) available to employees. It may also mean going without a regular salary, especially in the early years.

Are you willing to work long hours? If you enjoy the 9-5 lifestyle and taking annual vacations, then starting a business may not be right for you.

Have you done your market research? Do you know who your potential customers are? Are you convinced they will buy your product or service? Is someone already doing what you're doing? What makes your product or service unique? Take the time to research the market before starting your business.

Are you willing to market your product/service? You may have a great product, but if you're not prepared to market it and yourself, you should think twice about whether business is right for you.

Have you determined your start-up costs? Thanks to communications technologies, many businesses can be started without much cash. But you still need to budget for things like computers, Web-hosting services, and supplies.

Are you willing to learn? Combining your passion and your business is the dream of many budding entrepreneurs. But be prepared to learn all about the nuts and bolts of business as well -- things like finance, operations, accounts, and customer service.

Do you have what it takes to lead? If your business becomes successful, you may need to hire employees. Do you enjoy giving direction to people? Can you bring out the best in them?

Looking for ways to boost your business cash flow?

Use this checklist to see if you are using best practices to keep the cash flowing.

• Invoice immediately after you deliver goods or services.

• Consider shortening your payment terms -- to 30 days from 60 days, for example.

• Offer a small discount to customers who pay their bills early and charge a penalty to those who pay late.

• Do a financial check on new customers before offering them credit. Also check their business references.

• Monitor your receivables on a regular basis and follow up with late payers when appropriate.

• Use your business credit card to pay suppliers.

• Encourage the use of payment cards -- allowing you to receive next-day value for sales without having to make physical deposits.

• Work with an accountant to analyze your cash flow.

• Consider a line of credit to cover short-term needs and emergencies.

• Put your excess cash to work in a high-interest savings account.

Linda Barnett is the Manager, Small Business, Scotiabank

linda.barnett@scotiabank.com

www.scotiabank.com/forbusiness