Common Startup Problems and How to Avoid them

Starting a business involves a lot more than just capital. Sometimes, the business is doomed even before it has begun - because of a problem or two. Owners can actually ensure stability by identifying common hiccups and fixing them early in the game.

Here are common problems and how to avoid them:

Lack of a cash flow plan. Many entrepreneurs fail to realize that the success of their business depends on the income flow versus total expenditures. Big expenditures are one of the leading causes of bankruptcy. Business owners should always monitor expenses and keep them to a minimum.

Wrong Audience. Before you set-up a business, you should identify your market first - know what their needs and demands. Targeting the wrong market or having no potential market in mind would render your business useless. Be flexible and reflect current trends to maximize profit.

Hiring the wrong people. When choosing employees, value their work-attitude as much as their experience. Look for people with genuine interest in the growth of your business and who share the same ideals. In the long run, their passion for their work will be invaluable.

Having a Single Founder. A partner can help you brainstorm, explore ideas, management plans and concepts.  One  person can't do it alone.  Having a partner can  give  you better leverage for bigger opportunities with double the efforts.

Lack of a Business Plan. Always make sure that you have two sets of plans: long term and short term. Short term plans should deal with issues that can easily be solved. Long term plans, on the other hand tackle bigger, more complex issues or your over all vision for your enterprise in the years to come.