• Hunt for "angel" investors, including relatives, before quitting your job. You'll need seed money to get the business going.

• Run the company on a bare-bones basis during the startup, paying employees, investors, even suppliers, with equity.

• Continue to raise money as you scout out venture-capital firms that have invested in companies like yours -- and succeeded.

• Don't be beguiled by the first venture capitalist to show interest. Keep shopping until somebody actually coughs up money.

DATA: BUSINESS WEEK