Of the 21,000 phone calls we got last year, many people wanted to know, `How do I get started?' Well, right now we'll look at how: how to start a business from scratch, or buy one that already exists. OK? Where do you begin?

We've met a number of entrepreneurs who created a business out of their imaginations. Donald Cassel loved skateboarding, but his business didn't take off until he invented a simple bolt that helped skateboarders do certain tricks. He found that a simple idea is the best idea.

Ken Ryan saw a problem and moved in to solve it. While working in the air cargo business, he discovered goods sitting around when they should have been moving. So he came up with a unique way to move air freight on the ground

KEN RYAN (AirMax): We did it with a lot of small companies that were dedicated to delivering freight on time between airport cities, and specializing only in air freight, and it just blossomed out.

The key to succeeding and starting from scratch is dreaming up a great idea for a product or service that other people will want. And the idea doesn't even have to be original. It can be an improvement on an existing product or service. To be successful, though, there's one person who must be completely sold on the idea: you. You've got to believe in it enough to lose money before you make it. And you've got to believe in it enough to do what the guys at id Software did: work hundreds of hours, hoping someone would buy their computer game.

Before starting your business from scratch, you should answer all of these questions with `yes.'

1. Do you need to say, `I started my own business with no help from anyone?'

2. Do you believe that your idea is unique, or do you believe that you have a unique spin on an existing idea?

3. Are you so sold on your idea that you're willing to invest money in it?

4. Are you willing to develop your own systems to market your idea and operate your business?

5. And are you willing to live with uncertainty long enough for the public to recognize a need for your idea?

These are tough questions, but you need to force yourself to answer them. So starting from scratch is risky.

A less risky way to own your own business may be to purchase an existing business. The idea is that you're buying something that's already proven in the marketplace.

Tim Hennessey bought Ekkwill Waterlife Resources from an older man who was retiring. Now Tim has transformed the company into his own dream. For Tim, buying this existing business was the only way he could afford to get started, and this may be the way for you to go. See, Tim had no money, but the owner was willing to carry the loan.

TIM HENNESSEY (Ekkwill Waterlife Resources): We were able to put together a series of three debt instruments, three notes, that were secured by assets that came along with the farm that we had not purchased yet, so with a stroke of a pen we executed all these debt instruments at the same time and were able to buy the farm with no cash.

CHARLES EDMONDS (Business Broker): Owners are not looking for a big cash settlement in most cases. They're looking for an annuity-type income, so you could sign a note for three or five or as long as seven years to pay for the business and pay out of the profits of the business.

Steve Day bought State Line Tack. Like Tim, he has ridden it skillfully to incredible success.

Augie Nieto bought the patent to an exercise bike, has been improving it for 18 years, and is pedaling all the way to the bank.

And if you can't buy out, buy in. Steve DiAntonio bought into an existing business, Color Me Beautiful, keeping the creator as a partner. A business broker like Charles Edmonds may be able to help you find the right business to buy.

CHARLES: If I were buying a business, I would want someone working for me. In a normal situation, the seller lists a business for sale, and everyone in the chain of sale works for the seller because they're paid out of the commission from the seller. But there's such a thing as having a buyer's representative, a buyer's broker, and that's a relatively new idea, but I think its time has come and I would certainly use that. And the reason is, if I were the buyer, I would want someone working for me to find the right business, the best price and the best terms.

Once again, there are questions to ask yourself.

1. Do you understand why this business is for sale?

2. Do you have ideas to improve the business beyond where it is now?

3. Have you done your homework to determine whether the business will make money with you as the new owner?

4. Can you afford the down payment?

5. Is this business what you really love doing and not just a way to make money?

As you can see, there's more than one way to get started, and only you can decide which way is best for you. But don't decide yet. Be here next week and we'll tell you how to evaluate a franchise, another way of getting started.

The Closing of the Show.