7 Obstacles to Starting a New Home Business

Starting a new home business can be as exhilarating as it is terrifying. However, many people simply ignore many of the most salient issues that will help to determine whether or not the new business will succeed. Put differently, determining potential obstacles in advance can help you to be overcome these challenges if and when they arise.

Here is a list of some of the obstacles that you may encounter as you start your new home business:

1. Capital

Starting a new business requires money. While the amount of capital needed will depend upon type of business that you’re interested in starting, few people are able to start a business without raising some seed money in advance.

To overcome this “capital” obstacle, you will either need to raise the money through investors or via a bank loan. While taking out a loan may not be ideal, it may be preferable to forfeiting some equity in the company – which often results from raising money through investors.

2. Risk

Starting a new business is risky. For most people, this risk is compounded by the need to surrender a monthly paycheck from an employer in order to launch the new business

In order to overcome the stress that results from this process, you should try to plan ahead and save as much as possible. Don’t lose sight of your own needs as you focus on what your business needs. If you don’t expect to make a profit for months or even years, you need to plan ahead so that you have enough money to live. Just as insufficient funding can hinder a new business, insufficient personal resources can do the same.

3. Poor Marketing

Avoid the temptation to pay for marketing until it is absolutely necessary. Many new businesses fail because they overspend on advertising (radio, TV, print and online). The costs of marketing can drain the resources of a new business – without paying significant dividends. Hence, spending money on marketing without knowing how best to reach your target market can be a huge waste of money.

4. Time

New businesses require a tremendous amount of time. Such time constraints, if managed poorly, can limit productivity and stifle success.

Make sure to build in time to relax and unwind. If you devote all of your waking hours to your new business, your personal/family life may suffer. In time, if left unchecked, this can prove burdensome.

5. Pride

Many entrepreneurs believe that they can manage all of the operations of the start-up by themselves. Frequently, this decision to shoulder the burden alone will hurt the new business. Don’t let pride get in the way.

Though you may not need to hire a full-time workforce, you should look for ways to delegate work where possible. This is especially important when it comes to legal and financial matters. With reliable assistance and experience, legal and financial professions can help you to avoid some common business mistakes; and shoulder some of the workload.

6. Price Point

Many new businesses fail to understand how to properly price their goods and services. This is especially true for those new businesses entering an already crowded space.

The big box stores are able to price their products low because of the volume of their sales. But a new business often cannot operate on such thin margins. To avoid such situations, always attempt to set a fair retail price.

7. Lack of Self-Discipline

Starting a new business requires an incredible amount of self-discipline. There exist an endless number of distractions which could impede forward progress. And these distractions often disguise themselves as legitimate business concerns.