A new business carries the highest risk of failure because there is less certainty about market demand.
. It takes time and energy to create an image, build patronage, work the bugs out of new systems and procedures, and reach a break-even level of sales.
. It takes time to cultivate contacts with suppliers and implement a marketing strategy.
. There is the risk that new competition may emerge, or that potential customers are more difficult to attract than you anticipated.
. A new business always runs a significant risk that the time lag between start-up and positive cash flow turns out to be too long.
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