Becoming the president of an international corporation used to take a lifetime of hard work. Now it can be done with a PC, strong entrepreneurial spirit and the remaining balance of 2008.

Downturns in the economy are actually a great time to start a business that runs more efficiently than competitors. This is because companies are examining every expense for ways to save. If you can offer a better price than their current vendor you will have a decent chance of winning their business — and growing your new company rapidly.

Its never been easier or less expensive to start a company. The key is to avoid common mistakes and ensure that your new venture has the necessary advantages to succeed. Since Q1 and Q2 promise to be the busiest time for many new businesses, it’s important for entrepreneurs to lay the groundwork now

Write a Business Plan
Even though a business plan isn’t required for starting your corporation, it’s not a bad idea. And, in this economy it may be an essential one. Based on a study by Jessie Hagen of the US Bank, most businesses fail due to a combination of four factors: poor business planning, poor financial planning, poor marketing, and poor management.

According to Hagen’s study, in the Business Planning category, 78% of businesses fail due to lack of a well-developed business plan. Business planning software isn’t required — but it’s advantageous. Creating a business plan by yourself is an intimidating task. As a result, it’s a mistake not to use software and free business planning resources to develop an effective plan. That is why Business Owner’s Toolkit provides a free business planning webinar and content for Planning Your Business.

Gain Asset Protection
With a winning business plan in place, one of the next steps is to form the legal entity for your business. To reduce the potential risks to your personal assets, you’ll likely want to form an LLC or corporation. Both have their advantages and disadvantages.

Corporations, for example, make it easier to raise capital by selling stock. There are two types of corporations: S Corps and C Corps. Each have their own advantages. Income from an S Corp, for example, can be rolled into your personal taxes. C corps provide better structure for multiple owners. LLCs are more flexible than corporations in most respects. However, structure can be a good thing when it comes to business.

Build Brand and Infrastructure
When it comes to developing a company’s brand (logo), marketing materials, and web site I recommend working with experienced professionals. By making a modest investment up front on professional materials you’re likely to have a stronger brand, more professional image, and less headaches overall. Business owners should also seek turn-key solutions for basic infrastructure items such as telephone, internet, and marketing-related resources.

Signing up for a free membership at Toolkit.com provides business owners with free trials and discounts from leading vendors such as RingCentral, Register.com, VistaPrint, Constant Contact and GoToMeeting.

Many entrepreneurs start their first company while they’re still employed. This provides them with cash flow, health insurance, and the confidence they need to make a gradual transition to full-time self employment.