You should choose something that you will enjoy doing.  It will be a more successful business if you love what you do.

Choose something that you already know.  Starting your own business will be difficult enough without having to learn something new on top of it.

Pick something that will be profitable.  

Describe the product or service you will provide.

Give an explanation of how your business will be funded.

Include the experience or qualifications you have relating to this product or service.

Include any professional services that you will be using to help get your business started, such as accountants, insurance companies, lawyers, ect.

Explain what your expectations are of the business for the next two years.

Describe how you plan to advertise or promote your business.

Choose a name that is catchy and that symbolizes your product or service.

Make sure that the name you choose is not already being used by another company.

Make sure that your business or company name includes any state required identifications or prefixes. 

The worst risk of starting your own business is losing money.  By the time it's all over you may have an empty savings account, have loans to pay back, owe money on equipment purchases, and/or be in debt to any friends or relatives that may have helped out.  

Another risk is the personal sacrifice you will have to make.  Starting a business will take up a lot of your time and energy.  It will take a lot of work to get it up and going.  So before you quit your job to start your business, make sure you're willing to devote your free time to the business instead of friends or family.

One of the best benefits, and the main reason why people opt to start their own business, is the independence and flexibility that comes along with it.  Once your business is established, you will have the independence and flexibility to enjoy the better things in life.

Another great benefit is the personal fulfillment you will achieve by starting your own business.  It is much more satisfying than working for someone else, not to mention the respect that your peers will have for you for starting your own business.

The money is another benefit of starting your own business.  Once your business takes off and the loans are paid off, you will begin to make your profit!

Liability insurance is one type of insurance that may be needed.

Worker's Compensations is another type of insurance.  This type of insurance is necessary if you are going to have employees doing labor work for you.

Property Insurance may also be needed.  Property Insurance will help to protect your business assets.