Business Launch

Starting-up? – Hazards ahead

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.


1. Starting without a plan:
Enthusiasm over a good idea is over-rated. An idea is only an idea and without a well-developed business plan chances of success are minimal. It is also very difficult if not impossible to raise financing without a plan.

2. Money Problems
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 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.

3. 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.

4. 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.

These are some hazards you may face in starting a business. There are others but avoiding these may help improve chances of a successful start in business. I hope this helps you get underway. Let me know.
gerry@polarisgroupmc.com