What are the main risks a brand new business has to worry about?

Most new businesses fail within the first year because they can’t get enough customers to generate revenue. They usually start in debt to begin with, so more debt simply adds fuel to a bad downward spiral. Proper marketing and quick adjustments can prevent a lot of that, in my opinion. A new restaurant, for instance, can take food and service criticisms from customers and fix them as soon as possible so people keep coming back. That avoids the development of a bad reputation, which again leads to less business. Beyond that, I think a lot of problems lie in starting a new business too soon. If all of the ducks aren’t in a row, things can fall apart…fast. Sure there will be issues no matter what, but if the budget isn’t right or if there isn’t enough room for issues to happen, the failures come a lot faster. When the failures come, people give up. This lack luster attitude is another nail in the coffin because once you lose the passion. you lose the business. I think a lot of new businesses would do better if they didn’t give up so quickly, or if they learned to bail out when they should before it’s too late. I guess in short, a new business needs to be well thought out from every angle. The owner needs to identify his or her audience and the best means to reach out to the people within. He or she needs to understand the costs involved and have extra funds set aside for last minute problems. As long as he or she only launches when everything is done, there is hope for success.

Finaces, proper advertising, and gaining a name/statis so that the public can want to be a part of the business.

Failure to find buyers