5 Common New Business Barriers to Consider into 2022

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Running your own business is a dream for many. You might have a talent you want to share, the next new hot product, or an identified niche market set to explode. However, for all your good intentions, there are new business barriers to entry that almost everyone faces. Some are easily rectified, while others will be a constant annoyance to your brand new business venture.

Unreliable Transaction Services

As a business, you rely on payments from customers. Those payments require facilitation between you as the merchant and your business bank account. Typically, large financial services providers such as Fidelity Information Services handle these. Still, there are some business types prominent facilitators class as risky. High risk merchant processing becomes necessary if operating a risky business. Risk businesses include CBD, vaping, pawnshops, and MLM ventures. Some of the best providers include Payment Cloud and Durango Merchant Services.

Poor Planning

Of course, your business venture is only as good as your plan. Because of consistently poor planning and strategy, only 25% of companies make it past 15 years of operation. Any successful business manager will tell you the foundation of success is consistently solid and reliable planning. Planning your business doesn’t only cover what you will offer. You must compile a complete and comprehensive financial strategy. A good plan should include employee retention and loss predictions, profit and loss forecasts, market variability, and competition. 

Difficulty Securing Funds

Further to planning, securing the necessary funds for a successful startup is more challenging than you might think. A bank loan may only go so far, and you need to immediately pay it back. It is, therefore, necessary to attract investors, and this is a complex task. You can hold seminars and conferences to outline your prospect. Or you can develop a successful crowdfunding campaign. However, all your options require thorough planning and adequate expertise. Additionally, you need to consider the long-term efficacy of short-term funding.

Existing Competition

No matter your venture, there will always be competition. And in almost all cases, there is existing competition that has been in business for a long time. Therefore, they may have cornered most of the market. Additionally, existing businesses may be subject to generous tax breaks and levies that allow them to operate at a reduced financial rate that isn’t feasible for you. Then there’s brand awareness and customer loyalty issues to consider. You need to identify and highlight reasons why a customer should switch from them to you.

Licenses and Regulations

Thankfully, we live in a regulated world. Depending on where you are located, regulations are enforced or lacking. And whether you agree with them, they exist for a reason. Usually, laws are upheld to protect the population. Protection could be physical or financial. For example, you need to be licensed to sell your organic home-brew cider. Licensing is dependent on the determination of a safe product for ingestion. In some cases, testing and regulations procedures can take some time to complete. You need to factor this into your business plan.

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