A lot of entrepreneurs feel that starting a business is a significant accomplishment. Additionally, they also agree that maintaining a new business is even more challenging than an already existing one. Every business, be it small or large, will face several similar standard challenges. For example, recruitment, creating a good image and so on, will be some of the common challenges that all businesses experience. However, there are a variety of unique challenges that only apply to new business which could determine whether it will succeed or fail; they include:
A new business will tend to depend on a particular client for survival before it can grow and manage to diversify the client base. As such, for a business that depends on a particular customer for survival, we can simply say that it is more of an independent contractor, as opposed to being business ownership. Additionally, you might find that the clients that need products on crediting are flocking to your shop, which is a further risk to your business.
Money management is another challenge that a new entrepreneur will experience since there are cash-flows that might be draining others before they can stand. A business man can avoid this challenge by seeking funds elsewhere or having a huge customer base to help in such instances.
There is also the challenge of long working hours which may cause wearing out of a passionate entrepreneur. The desire to achieve may cause the business owner to overwork resulting to fatigue that may consequently lead them to making rash decisions such as quitting when they need to make critical choices.
A new business faces the challenges of bankruptcy or stalling if the owner is sick or dies. As such, the entrepreneur is the sole manager of the business and thus he affects the operation of it depending on the situation. For example, if he is hit by a car, the business may stop to go on. The bottom-line is that a new entrepreneur should be aware of the challenges that the business might experience and prepare to face them accordingly.