Finance Problems Faced by New Business Developers

In the startup phase, there are various challenges faced by new business developers. General trends vary depending upon the region; however the major part of the resistance comes from the social circle. Instead of motivating a person to take initiative, friends and family members resist to help because of the large amount of capital is associated with business start-up. If a person cannot manage the business successfully, then the entire amount is wasted and people in the current age cannot tolerate the loss. For this reason, it can be said that most of the people are risk averse and they try to avoid the risks in as many situations as possible. Among the major challenges or problems faced by new business developers, finance is considered to be the major issue for the following reasons.

Lack of experience

The people who have no experience of doing business face financial problems because no one agrees to provide capital. People tend to invest in those securities which do not pose any threat and ensure good returns. However a person who does not have any experience of business faces resistance from friends and family members. De-motivation results because of this general attitude and the basic reason behind this phenomenon is finance.

Value of money

Value of money depletes with the passage of time. Money is considered to be the important asset and each individual wants to invest it in a better way. A business which is at the introductory stage demands large capitals and because the investors know the value of money, they resist investing money.

Lack of investor’s interest

Investors in the market are looking for those investment opportunities which are risk free. There are very limited investors who can show their interest with the businesses which are in start-up phase. There are various costs e.g. the start-up cost, purchase of assets and the several related costs which are considered to be one-time and are related to the initial phase of the business. During this time, the business is on developing stage and does not ensure returns. For this reason people try not to invest their money in this phase and invest in those options which promise better returns.

Because of these issues, arranging finances for the company startup is one of the major challenges for the business developers. Investors resist investing in the businesses and hence the arrangement of money comes out to be the major problem faced by the business owners.

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Vijayraj Reddy
Vijayraj Reddy is founder & editor-in-chief of, a financial blog which helps people to earn money, invest money and save money. You can find him on Facebook & Twitter or send him email at [email protected]

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One Response to “Finance Problems Faced by New Business Developers”

  1. Ashok says:

    Yes i do agree with you that is a big problem to face New Business Developer, i like your post, thanks to sharing nice post.

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