With the national unemployment rate climbing to a five-year high of 6.1 percent, more than 600,000 fewer jobs in the workforce today than at the beginning of the year, and job security becoming more uncertain, some people are thinking about going into business for themselves ­ particularly those who recently lost their jobs.

But now may not be the best time, according to ClearRock, an executive coaching and outplacement firm headquartered in Boston.

To be sure, starting a business is not for everyone ­ especially if your prime motivation is because you have no other way of earning a living, ClearRock says. Although more than 12 percent of the labor force engages in some new entrepreneurial activity annually, only just one in 10 people started a business because they had no other choice for work, reports the Global Entrepreneurship Monitor of U.S. entrepreneurial activity.

“Most people who become self-employed are motivated by the possible benefits of starting a business, and not because they weren’t able to find other work,” said Annie Stevens, managing partner with ClearRock. “Successful entrepreneurs are people who choose entrepreneurship even when they have good prospects for other employment.”

In addition, about one-third of small businesses fail to make it past the second year, and only about 40 percent are still in existence after four years, according to the U.S. Bureau of Labor Statistics.

Regardless of whether people who are unemployed start a business because it was the only suitable alternative ­ or as the result of a deep desire or interest ­ they need to ask themselves the following questions before launching a business venture, according to ClearRock:

Are you suited for self-employment?  “People who start businesses must be prepared to make personal and financial sacrifices,” says Greg Gostanian, managing partner for ClearRock.  “But those who are unemployed, or have recently been unemployed, must also be certain they have sufficiently recovered emotionally from losing a job before launching a business.”

Calling all entrepreneurs! This is it: fourth quarter time! Get your new pair of sneakers ready, with roller skates, if possible. The holidays are coming – and it’s time to begin implementing those projects and strategies we’ve been talking about since January – along with system improvements to prepare us for greater efficiency and effectiveness in serving our customers.

Always, but this year especially, we must be at attention with the absolute intention to serve, to WOW!, to appreciate every customer who thinks twice about driving to any destination, and then thinks cautiously and mindfully about every dollar they spend. Our job is to exceed their every expectation, not only because the value perceived is the value achieved, but because every appreciated and well-served customer becomes our best source of advertising.

There are so many choices for every consumer in the marketplace today, and so little time in most people’s busy and often frenetic lives. A question that needs to be asked, whether we are a retailer or a lawyer or a property manager or insurance agent, is: What can we do to stand out from all the rest?

Sure, as business professionals we need to know marketplace trends, economic barometers, and the demographics of our particular customer, but what is more important, is that we must know who we are as a company, how we are different than our competition, and why customers come to buy from us. What is that underlying feeling or need that we can satisfy better than anyone else? What is it that we are really selling in our company?

Let me be specific. What is Kodak really selling, besides film, and cameras, and photography supplies? Kodak is selling memories, heartfelt moments in time. Each :30 or :60 commercial tugs at our heart and moves us to tears in record time. Families. Tenderness. Moments we relate to and want to remember always – that’s what Kodak is selling.

And what about Allstate? “You’re in good hands with Allstate.” Sure they are selling insurance, but what they are really selling is security, safety, protection, peace of mind. Who wants to talk about insurance? No one. But we all want and need peace of mind, don’t we?

Besides gazillions of dollars in lipsticks, eye shadows, and mascara, what is Revlon really selling? Revlon offers all we victims of our advertising culture not only beauty, but yes, hope. Hope is what Revlon is selling more than anything else.

So what is it that you are really selling? What is the vision, the plan, the story that embodies why you are in business and why customers should buy from you?

Once you are able to clearly identify this critical piece of information, this concept will permeate everything else you do, right down to the name of your company, how you merchandise and/or market your wares, who you hire, how you train your personnel and how you buy and sell your products and services.

Ask yourself continually: How does this action or behavior communicate to my customer what I’m really selling? Is this consistent with my company’s image, niche and message? Every decision you make must be in alignment with everything else or your customer gets confused, frustrated, or even worse, bored with trying to figure out who you are.

Research shows that small businesses make up the majority of companies in this country. The key to success regarding a small business is not only keeping it going, but also keeping it growing. There are many things that can be done to grow a small business, and these tips are a good place to start.

1. Networking.

Running a small business means it is essential for the business owner to network with others. Networking will enable them to make helpful contacts in various areas of their business, and word-of-mouth referrals may come their way, as well.

2. Conferencing.

Every year, business conferences are held in cities around the country. By attending at least one or two of them, a company can put its business on the map and gain the opportunity to network and learn from others in its field.

Do What You LOVE: If you've chosen your business because you read that this niche was the next hot one, or because your favorite uncle (or your best friend) thinks you'd be well-suited for this business, you may as well pack up now and save yourself some time and money. If you don't love what you do, it will show...potential customers will know it and will go elsewhere. Is it possible to be successful anyway? Sure -- but it won't be easy and it won't be fun...and isn't that why you want to be in business for yourself anyway?

Instead, choose what you love. You'll know what that is when you find yourself being incredibly productive, forgetting the time passing by, and not being able to wait to get up in the morning to do more! At Solo-E we call that being juiced...but whether you call it being in the flow, or the zone, or whatever, FIND IT!

WRITE DOWN Your Business Plan:

As a small or solo business owner, you still need a business plan. Even if you aren't getting a loan! Would you invest thousands of dollars of your own money buying stock in a company that didn't have a written prospectus? (I hope not!) Then why would you spend thousands of dollars AND hours of your precious time on a business that doesn't have a written plan?

Write your plan, get it critiqued by professionals, and most important, BE READY TO CHANGE IT. This may seem counterintuitive...why bother writing it down if it's just going to change? Because writing it down makes it more clear...and helps you get to the next stage of learning and planning and revising. It's critical--67% of businesses that failed had no written business plan. Want to play the odds?

Multiply Your Expected Startup Costs by Two--or Maybe Three: When I started my business, an honors MBA grad with 15 years of solid business experience behind me, I figured I was smart enough to estimate my startup costs accurately. I knew all the things I needed and made conservative estimates and I was still WRONG! That's right, I was still off by a factor of almost three. Don't make this mistake! One of the biggest reasons small businesses fail is because of lack of capital. Give yourself the best possible start by saving or acquiring sufficient startup funds NOW. Before you start!

Make Your Market Niche as Small as Possible: Again, this is counterintuitive--shouldn't you try to appeal to as many people as possible? The paradox is that the more you try to appeal to EVERYONE, the less you will appeal to ANYONE. Let's say you are selling your house...would you rather list it with the agent who operates in 14 counties, sells both commercial and residential real estate, and sells everything from cottages to estates? Or would you pick the agent who specializes in your community, selling only houses in a well-defined price range that she knows extremely well? Ruthlessly define your niche, make it as small as possible, and stay true to it. You'll thank me later!

Do Marketing Your Way:

The temptation is to choose all the marketing methods that the competition uses. To stay with tried-and-true marketing channels. To place advertisements that you know nothing about creating, or make cold calls that give you heartburn. Why? Because (all together now) "that's how it's always been done."

It's difficult to stand out among your competitors when you are doing the same kind of marketing! So instead, look to your strengths. What do you like to do? What are you good at? Then choose three marketing methods that play to those strengths. If you need ideas, check out 136 Ways to Market Your Solo Business.

Remember the Most Important Ingredient in Your Business--YOU:

Business-owner: know thyself. Spend some time learning about who you are and how you are unique. Then let that uniqueness shine through in your marketing, in how you run your business, in everything you do. Don't hide your quirks--celebrate them!

Customers go to small and solo businesses primarily because they are looking for a personalized experience. They want a relationship with you as the owner of your business. If you try to come off as who you think they want, they'll smell right through that and not come back. Be who you are, and trust that who YOU are is going to be attractive to the right people.

Build Your Business by Building Relationships:

Being a small or solo business owner isn't about sitting in the corner alone. Actually it can be--and that isolation is what drives many out of business and back into a "job". Build relationships to survive! Start with your colleagues--others you know who are at the same stage of business as you, or are farther along and willing to mentor you.

Next, build relationships with potential customers. Ask them what they want! Then create products and services based on their input and come back and show them what you have done. Get feedback, tweak, and maybe make your first sale. Stay in touch with your customers even after they leave you.

Last but not least, build relationships with your competitors. You might be able to do this right at the beginning, simply by asking them for their advice. Surprisingly, many ARE willing to share their secrets if you just ask. Later on, build cross-referral relationships, co-marketing alliances, and other relationships that are win-win for you, your competitors, and your customers.

Don't Accept a Customer Just For the Money:

This is probably the hardest advice for new business owners to apply. Especially when there is a job, a project, a potential client, just outside your niche, that could keep your business solvent for the next six months. Don't do it! Taking on a client outside your niche inevitably results in frustration for you, dissatisfaction on the part of the client, and in the end, usually costs you more than you make. Ask any successful business owner and they'll tell you this is true!

Don't Do Everything Yourself:

It's so tempting to fall into the self-deception that "it's cheaper for me to do it myself." IT"S NOT! If you aren't good at something, for instance bookkeeping, it will probably take you 2-3 times as long--time you could be spending doing things that are essential for you to be doing personally, like writing your business plan or deciding your marketing strategy. Put sufficient capital into your business upfront so you CAN hire help right from the start. Your business will get off to a quicker start because you aren't distracted by time-consuming tasks that drain your energy.

Assemble Your Support Team:

Start with the people who will help you do the things you aren't good at. Some examples: bookkeeper, marketing writer, web designer. Then add the people who give you professional business advice: a lawyer, an accountant, a business coach. Finally, include the people who support you personally: your family, friends, and colleagues.

Don't forget to be part of other's support teams, too. Share your expertise at Solo-E, start a networking group where business owners support each other, share a referral with a colleague. Solo Entrepreneurs supporting other Solo Entrepreneurs is what will make us all successful!

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About the expert(s): Terri Zwierzynski, MBA (UNC-Chapel Hill) became a corporate refugee in 2001, after 15 years of employment with technology companies big and small. After her initial shock at being unemployed, she vowed to “never work for an idiot again!” A non-conformist at heart, Terri Z is now The Solo-CEO: a home-based business strategist and marketing consultant to the self-employed, and a grassroots promoter of the solo entrepreneur lifestyle. She is the CEI (Conductor of Extraordinary Ideas) at Solo-E.com, the resource website which attracts thousands of solo and small business owners monthly from over 100 countries on six continents. Terri is also the co-author of 136 Ways To Market Your Small or Solo Business.