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Although it may seem like a scary time to start a new business, the beginning of 2012 offers many advantages for budding entrepreneurs: reduced land and labor costs, low interest rates for loans and an economy that is experiencing gross domestic product growth.

However, starting a new business is a risky proposition in any environment. Therefore it is important to make sure that you have done your homework beforehand in order to maximize your chances at success. The following checklist will help you do just that.

A Business Plan

There may not be a more important, yet more neglected, object to a new company than its business plan. These plans are designed to provide its owner with a comprehensive view of the enterprise by making them think long and hard about their goals in the business. In addition, the business plan will specify the methods required to achieve those goals.

A Source of Funding

A business with no money is not a business. Before you can start your new company, you need to figure out where you are going to get your initial capital. This may not be a concern if you have already saved an adequate amount of money, but most people will need to obtain outside funding. Banks are a traditional source of such funding, but they do have strict lending requirements. Thankfully interest rates are at all-time lows so it would be worth your time to investigate this avenue. Of course, there are other sources of funding as well, such as family, friends, government loans and, if you are desperate, even credit cards.

Business Insurance

All businesses, especially small ones, need to protect themselves from the costs of unexpected events, such as broken-down vehicles, lawsuits and theft. In addition, your workers are going to expect some form of health and workers' compensation insurance in order to protect themselves from events that may prevent them from working.

Many entrepreneurs ignore the value of insurance in the attempt to save a few dollars a month, but they do not realize how much risk to which they are exposed without it. Thankfully there are sites like BusinessInsurance.org that give business owners an easy way to get insurance quotes. This will ensure that you can get the best possible insurance at the lowest possible cost.