Start-Up Business Problems
Starting a business can be exhilarating and wildly fulfilling. However,
it can be quite complicated, and may challenge you in ways you had not
imagined. Knowing the challenges and problems you may encounter in your
start-up can help you to prepare for the unexpected, and possibly help
avoid common pitfalls.
Money Problems
The majority of small businesses that fail do so because of lack of
cash. A 2004 U.S. Bank study said that 79 percent of small business
failures cited “starting out with too little money” as one of the
reasons for the business downfall. Often, this is because owners borrow
based on their ideas of a successful business, instead of borrowing for a
worst-case scenario. A start-up business owner needs to be optimistic,
but often is too optimistic about seeing profits. Without adequate cash
flow, slow sales or a downturn in the market can end the business before
it has a chance to gain momentum.
Poor Marketing
A common problem for new business start-ups is to hurry into
elaborate print advertisements and radio commercials without knowing the
target market and researching other market data. The costs associated
with marketing and advertising can be expensive. If a business does not
know who its target market is, then it may be a waste of money to print
these ads that may contain incorrect messaging or have them appear
placed in publications that don’t reach the company’s target market.
Managing Work and Home
A business start-up requires a tremendous time commitment and a
strong will. Add to this the financial stress of a fledgling business.
Start-up business owners often have problems balancing the overwhelming
demands of the company with the needs of a family. If the stress of the
workplace spreads into the home, the business owner may feel pressure
around the clock.
Trying to Do It Alone
A common problem for most entrepreneurs is the belief that they can
handle all of the start-up’s operations by themselves. It may be a
cost-effective way to run the business, but operating the entire
business on your own may not be a wise decision or the best use of your
time. Many small-business start-ups may not require full-time employees.
But it's a good idea to have at least two teammates, a lawyer and an
accountant, ready to help. With experienced, reliable assistance, you
can avoid other common business mistakes. When it is time to hire staff,
be careful in your choices. Employees are a crucial component in the
success of your business.
