Why Are High Initial Costs a Concern for Entrepreneurs?
High initial costs can be a concern for several reasons:
Financial Risk: Investing a large sum of money at the outset increases the financial risk, especially if the business fails to generate sufficient revenue. Funding Challenges: Securing funding to cover these costs can be difficult, particularly for first-time entrepreneurs or those with limited access to venture capital. Cash Flow Issues: High initial costs can strain cash flow, making it challenging to cover ongoing expenses and invest in growth opportunities.