Challenges of new venture development
The biggest challenge that most of the new ventures face is the source of income. Without enough personal savings, one can face hurdles which can include borrowing loans from banks or friends. Apart from the financial hurdles, new ventures face the lack of trust from customers and the burden of promotions. With many ventures already competing in the market, new ventures will strain to advertise their products straining the financial strengths of the venture further. Finally, making decisions can be a big challenge in new ventures. Most entrepreneurs fail to make critical decisions since they lack experience on the impact such decisions will have on the new venture.
Financial decisions that can make new ventures to fail
As mentioned above, finance is one area that can determine whether a new venture floats or sinks in the market. The path taken will be decided by how finance is managed. Poor management will mean failure. Some examples of financial decisions that can lead failure of a new venture are when the entrepreneur does not invest adequately in the venture. Adequate investment, in this case, means that all the necessary equipment is bought. This can cause the venture to fail in the essence that the venture will be lacking the necessary equipment to run. Therefore, finances must be invested properly and only on what matters to the venture.
How asking the right questions will benefit an entrepreneur
Lack of experience in a particular field of business is the main source of failure for most of the new ventures. To understand the challenges and advantages a venture stands to enjoy or suffer, an entrepreneur must ensure they ask the right questions. Some of the questions must involve the challenges they are likely to face. Apart from questions on challenges, an entrepreneur should seek to understand the main competitors in their area of interest.
