The challenges will vary depending on the business. In some businesses the biggest challenge is acquiring adequate capital. For others, the biggest will be establishing a customer base and/or name recognition. Others still, getting the required permits from the interested governments. Perhaps in your case, getting the skills and/or employees necessary to succeed is the most difficult. Often the set-up work - including market survey, location decision, scope of work, legal paperwork, etc - is the most important in determining whether a new business will be successful. Offering the best service in the wrong location can lead to failure for example. For more specific answers, you would need to provide more details.

LOcation, LOCATION, location.

Marketing Marketing Marketing! You only have to look at celebrities, religions and others to see how well packaged a product should be. Without marketing the business goes nowhere. Any business needs good financing to do the marketing. There are many great products/services that don't succeed and it’s not because the product or service is bad. The reasons are attributed to poor financing and lack of good marketing skills. Some businesses have great financing but without marketing skills there's little hope of success.

I think the gratest challenge is CREATING advantages over competitors.

Right now for me...Its the business plan...I have everything in my head...I just can't get it down on paper...then I'm sure I won't be able to tell people what I think, Its easy to have an idea...its hard to make someone believe in it....but I'll make it happen

Whew! I own a small business; there are so many challenges. I'll assume that you already know what business you want to be in and that you have a product or service: 1. Capital. You need enough money to start up and you need something to live on until your business is successful. Figure out what you realistically need and then plan on needing double to triple that. 2. Location. The "right" location is highly dependent upon the type of business. For my business I need foot traffic. Where I live commercial/retail space is pretty much full up so finding any location, even a bad one, is tough. 3. Employees. Boy this is really major. In fact it might be the most important factor. You need great employees, you need to keep them, avoid turnover. But you also need to be the boss and stay in control. 4. Customers. They are your bosses. 5. Marketing. It helps to be a good marketer. This can also be a factor related to capital. Don't be afraid to spend to market, but don't spend uselessly (I've done that too). 6. You don't necessarily need a brilliant concept, or a unique idea. You just need to give people a product or service they need or want and find a niche that isn't being served in your market. 7. Stay involved and stay flexible. You can't be too wed to a specific way of doing things. Listen to your customers. Stay positive. Stay involved. Don't give up. Losing heart and giving up probably kill the majority of small businesses even more than lack of capital. Any business I've had has gone two steps forward and one step back; employees quit for dumb reasons, customers scream, than landlord doesn't fulfill his obligations; suppliers send you the wrong product; the list goes on. You've got to be resilient and roll with the punches.

Before answering this question here's something to think about. With the abundance of information about starting a small business available today why is it that the failure rate of 90% or better, depending on whose statistics you want to believe, has not changed. Today, information on starting a small business is readily available on the internet, online classes, at schools and colleges. There is help with business plans, some of it free, from places like the Small Business Administration. I encourage everyone to use free resources. Yet, getting more information won't increase the odds of your success. The main challenge to starting a small business has to do with your motivation. Your motivation to start a business must be consistent with your passion and enthusiasm for what you are doing. I have watched many good people fail over the years because they started a business more often than not for the money. Don't get me wrong. Money is a good thing and a wonderful tool. But, to earn money without enthusiasm and passion is more difficult. And, if you are successful in earning the money in a business that you ultimately do not like then this will lead to burnout and failure. The main challenge to starting a business is to find something that is in alignment with you. Something that honors your gifts and talents. When you do you will find it easier to attract the right people and money to be successful. And, you will be happy. That attracts good things. Before you get started in a business find out what inspires you to start a business and understand the motivation you will need to carry it through to success. After all, if you are hurdling down the wrong path you don't need more motivation. All that is going to do is get you across the wrong finish line quicker. What you need is more education to turn you around and headed in the right direction. You need more education about yourself and what works and doesn't work for you. Know what you are willing to do and not willing to do. Understand what skills you may need to develop to be successful. When you do these things you will be starting a business for the right reasons and with a more accurate picture of the type of success that will work for you. And, when you start a business in this manner you are more likely to persist through the inevitable ups and downs and be successful.

To reach the breakeven point as soon as possible.