Skip to main content

CHALLENGES OF STARTING A NEW BUSINESS OR EXPANDING AN EXISTING KIND

A new start up while attractive also , it has a greater chance of failure. thus a new startup business is far more likely to fail than an existing business, business with a successful history. the reason for failure in most cases is the inability of the owners of news startups to manage the following challenges very well.
  


1. PROBLEMS OF CASH FLOW AND GROSS UNDER FINANCING 
The new start ups in most cases has little for the waiting out the start up period and all of the expenses of getting a new business off the ground 
thus lack of cash flow and gross under financing is a major challenge to be faced by a new business at this pint in time




2. COST OF EARLY PUBLICITY
A new startup will need great deal of publicity to attract customers to the business as the location ,the name of what you are doing is not known when you first open your doors. a new company that have never existed before will need to spend money on TV, Radio and newspaper advertisements to attract new customers to the Establishment 


3. COST OF REPEATED ADVERTISEMENTS
The owners of new startups ill have to repeat the advertisements in order to get their message across so that the customers will give them a trial . in some cases this advertisement expenses could be considered part of the initial cost of the business.this type of advertisement is far different from what obtains from an existing company , thus with an existing business you might want to know the public that new management has taken over the existing business



4. START UP TIME AND DEVELOPMENT OF GOOD STAFF 
A new startup business needs to find an employee and takes time to develop a good staff  this adds another critical challenges to start up time of the first year or so. a new owner cannot do everything by himself or herself, if the business is new to the new owner as far as experience, the startup time will also require a very quick learning curve. many owners of new startups are fearful they might fail at running a business so they try take the less expensive way to try managing a company 


5. FEW CUSTOMER BASE
A new startup have very few customer when the doors are first opened. this problem needs to be addressed. A new start up has no base nd needs to grow one as quickly as possible.

Comments

Popular posts from this blog

DEFINITION OF SOLE PROPRIETORSHIP BUSINESS

DEFINITION
Sole proprietorship business signifies exclusive ownership of small  business enterpeise. In other words, sole proprietorship decribe that business which is owned by one individual a man or woman. this form of business usually attracts many people who are tired of working for government or for someone else and are also eager to be independent.



 They use their little savings  to start business as sole proprietors. With this kind of busineess you need to take several legal action. There are no serious organization expenses; no formal requirement for publicity. Any person who engages in business activities - buys, sells or provide a service under his own name is the proprietor of the business. It may be part-time or full-time

BUSINESS PLANNING CONCEPT AND MEANING

Small business operate in an environment which changes are inevitable factors. technological changes, fluctuation in prices of raw materials, changing government policies and regulations changes in consumer taste and preference among other things are inevitable factors that have been shaping and reshaping business activities in Nigeria. they are thus unpredictable however in view of their unpredictability, it has become more necessary for the small entrepreneurs to determine their business goals carefully, and then construct plans for attaining these goals no matter what the changing environment will be


PLANNING DEFINED
Planning is simply the thinking that takes place prior to action or decisions its central is with the future and the future is nothing but the summation of our decisions. thus planning can be described as an anticipatory decision making.


 planning is done to decide what to do and how to do it prior to taking action. ultimately planing is considered of key elements of thou…