Challenges of Starting a New Business by Chris Joseph, Demand Media

Starting a new business can lead to personal and financial rewards in the future, but you will likely face a number of challenges when starting out. The demands on your time may be greater than you anticipated, and enough money to keep things going can also be a problem. With some careful planning, you can anticipate some of these challenges and be able to overcome them.

Obtaining Financing

Due to difficult economic conditions as of 2010, it can be challenging for entrepreneurs to find a financial institution that will lend them the money to get started. This means you may have to explore alternative financing sources, such as borrowing from friends and relatives or using personal savings. A drawback to using your savings is that you may not have enough money to get you through the difficult early months or years.

Sticking It Out

Operating a business can be like a roller coaster ride, filled with ups and downs. In addition to the financial resources to get you through the lean times, you may also need plenty of emotional fortitude to persevere when things look bleak.

Managing Time

New business owners may feel they need to do everything themselves or spend too much time on things that don't help the business grow. When planning a new business, you should decide which tasks you should concentrate on personally and which ones you need to outsource or hire employees to perform. This will give you the time he needs to focus on vital business functions.

Obtaining Knowledge Quickly

Unless you already possess high expertise or are purchasing a franchise where you receive strong support from the franchisor, you'll likely need to learn much in a short period of time. Even if you have strong product knowledge, you may be weak in areas, such as marketing or managing employees.

Lack of Balance

During the start-up phase of your business, you may be so focused on making it a success that other areas of your life could suffer. Factors that include stress, overeating and a lack of exercise can cause your health to deteriorate, and you may neglect personal relationships. You will need to set aside time to make sure you have some form of balance in your life.

Chris Joseph writes for newspapers and online publications, covering business, technology, health, fitness and sports. He holds a Bachelor of Science in marketing from York College of Pennsylvania.

source: http://smallbusiness.chron.com/challenges-starting-new-business-4197.html