Solopreneurs must be wise with money.

• Position: Business & Finance

As people increasingly look to monetize their use of Instagram, YouTube, and other social media platforms; with the proliferation of money-making apps and websites, like LetGo, Offer-Up, SwagBucks, and AirBnB; and the escalation of home-based, solopreneur and entrepreneurial businesses, Eric Lofholm--founder, president, and chief executive officer of Eric Lofholm International, Inc., and author of several books, including How to Sell In the New Economy, How to Master the Science of Goal Setting; and 21 Ways to Close More Sales--says people seeking to start a money-making venture, however big or small, often take "stupid risks" with money, but they can learn to make more prudent decisions.

"Most stupid money risks have to do with unawareness, not stupidity. Spending the time to get some things right at the outset will save you multiple headaches and mounds of money down the road. In my experience, some of the foolish risks people take with money have to do with a few conditions":

Paying poor attention to detail. "In the rush to close a deal, for example, people skip procedures and it winds up blowing up in their faces. Really learn to be very detail oriented throughout the process."

Spending money without a plan. "For any money-making endeavor, the most valuable resource is capital, so big expenditures need to be initiated very carefully. Many people...