Several factors can contribute to financial strain in entrepreneurship:
Insufficient Funding: Many startups struggle with raising adequate funds to cover initial and ongoing expenses. Poor Financial Planning: Lack of a detailed financial plan can lead to overspending and misallocation of resources. Cash Flow Issues: Delayed payments from clients or seasonal variations in sales can cause cash flow problems. High Operating Costs: Expenses such as rent, salaries, and utilities can quickly deplete available funds. Market Fluctuations: Changes in market conditions can affect revenue and profitability.