Starting a small business can be exciting and enjoyable. However, it can be quite complicated, and may challenge you in ways you had not imagined. Knowing the problems and how to deal with may help you to prepare for the unexpected, and possibly help avoid common failures. The majority of small businesses that fail do so because of lack of cash. Often, this is because owners borrow based on their ideas of a small business, instead of borrowing for a worst-case scenario. Without adequate cash flow, slow sales or a downturn in the market can end the business before it has a chance to gain momentum. A great way to deal with this problem for small business’s owner is to borrow from friends or family due to the fact that the amount of money they need is not a huge number. A common problem for small business start-ups is to hurry into advertising without knowing the target market and researching other market data. The costs associated with marketing and advertising can be expensive. If small 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 target market. This mean market research before start up a small business is certainly vital. Finally, managing work and home is another problem that small business might face when starting up which tremendous time commitment and a strong will are required. Add to this the financial stress of an inexperienced business. If the stress of the workplace spreads into the home, the business owner may feel pressure around the clock. The only solution is that small start-up business owners will have to balancing the demands of the company with the needs of a family.
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