When searching for new business opportunities, entrepreneurs should be aware of some barriers and pitfalls that may occur. One of them is the irrelevance of the planned idea to a specific market environment. For instance, expanding a restaurant business and opening a private coffee shop near Starbucks or establishing another popular brand is a deliberately wrong decision. Such a site is unlikely to be able to withstand the competition of a well-known market participant and will be forced to suffer losses incompatible with income. In addition, in a competitive environment, the current resource base is of great importance. If the target market environment is competitive, ongoing investment and upgrades to the current material base are powerful tools to build customer loyalty and maintain stable profits. Nevertheless, as an alternative solution to expand the business, this option is not relevant and may be fraught with financial risks.
Another pitfall to take into account when searching for new opportunities is the threat of the inadequate assessment of the work ahead. When moving from one industry to another, entrepreneurs should understand that specific conventions and requirements are imposed on respective businesses. One of the examples is significant tax liabilities imposed when on enterprises operating with harmful production. In this case, analyzing the balance of profit and costs is a mandatory activity before taking any steps. Otherwise, the costs of tax payments, documentation, and other expenses may exceed the planned benefits, which contradicts the initial idea of ​​entrepreneurship. Moreover, additional challenges with the law may arise, which is a threat to any further work. These pitfalls are crucial to consider when looking for new business opportunities.