A new business is likely to face multiple problems. All businesses require finance, but some start-ups may not have the credentials to access external funding. Cash flow problems are another possibility; the business may have an abundance of stock that cannot be converted to cash with ease. People management problems may arise if there is a lack of experience in hiring staff.

One of the major problems that most start-ups encounter is an unestablished customer base, especially if they are operating in a market with well established competitors.