10 Common Problems for New Businesses


Wrong Fiscal Motivation

Entrepreneurs need to ask themselves a lot of important questions before launching a new business. What is the best product? Who is my target customer? Where would be the best location? But perhaps the most important question of all is, "Why?"

A common problem of many new businesses is to take a huge financial risk for the wrong reason. Too many entrepreneurs are motivated chiefly by the desire to be their own boss [source: Mount]. The truth is that you will always have a boss: the customer. And you might even find that cranky customers are harder to deal with than a grumpy boss.

If you start your own business simply because you're sick of your old job or you want to work fewer hours, those are bad motivations. The truth is that successful new business owners average 50 to 60 hours of work a week for at least the first two years [source: Gallagher]. That kind of commitment requires a real passion for the project. Anything less than full commitment will mean failure.

The greatest motivation for starting a new business, not surprisingly, is to make money [source: Mount]. You don't have to be in it to earn millions, but no one starts a business with the goal of losing cash. If your chief motivation is to make money, then you will take the necessary steps to ensure that your business plan is sharp, your product is of the highest quality and your employees are well-trained.