How Hard Is It to Start a Business?

You're Googling this question at 11 PM for a reason. You've got a business idea that won't leave you alone, but you're wondering if you're underestimating what you're signing up for.

Let's be straight: Yes, starting a business is hard. Not only "challenging but rewarding" hard, but actually hard. The kind of hard that means working weekends, second-guessing yourself at 2 AM, and learning a dozen new skills you didn't know you'd need.

But here's what matters more: It's not impossible, and thousands of people who felt exactly like you do right now have made it work. The difficulty isn't the mystery. It's knowing what you're walking into and whether you're ready for it. Let's break down the real challenges, the realistic timeline, and whether this leap is right for you.

TL;DR How hard is it to start a business?

Starting a business is genuinely hard. Most new owners spend 6-12 months in intense setup mode, invest $10,000-$50,000 upfront, and work 60-80 hour weeks while learning finance, marketing, and operations on the fly. About 20% of new businesses fail within the first year, typically from cash flow issues or underestimating the time commitment.

The difficulty depends on what you're starting:

• Service businesses are easier to launch than restaurants or retail stores
• Online businesses have lower barriers than brick-and-mortar locations
• Your situation matters, so starting while employed is different than going all-in

The hardest part isn't starting, it's running the business daily. Managing employees, maintaining cash flow, and handling operations requires skills most new owners don't have yet. Modern tools make some parts easier, but expect a steep learning curve no matter what.

Why starting a business is hard (but worth it)

Starting a business is hard because you're building something from nothing while learning multiple skills you've never needed before, risking your financial security, and making hundreds of decisions with no roadmap. It's not supposed to be easy. The difficulty isn't a sign you're doing it wrong, it's just what building a business actually requires.

You're learning five jobs at once

When you start a business, you become the CEO, accountant, marketer, HR manager, and salesperson all at once. About 33% of small business owners work more than 50 hours per week, and much of that time goes to tasks they're learning on the fly. The learning curve across finance, marketing, operations, and team management is steep, and you're climbing all of them simultaneously.

The financial risk is real

You're watching your savings account shrink every month while hoping customers show up before the money runs out. The average small business owner spends $40,000 in their first year, often from personal savings or loans. Unlike a regular job with a guaranteed paycheck, you're paying yourself last, if there's anything left after covering expenses.

The financial pressure is constant. You're responsible for keeping the lights on, paying any employees, and covering your own bills, all while building something that might not generate revenue for months.

Every decision is yours to make

As a business owner, every choice lands on your desk, and each one feels permanent and expensive. There's no manager to ask, no experienced team to weigh in, and no company playbook to follow. You're making it up as you go, knowing that wrong decisions can cost you money you don't have extra of.

So why do people still do it?

Because the payoff is worth the difficulty. You're building something that's yours, making your own decisions, and creating value in your community. Despite the long hours and financial pressure, 92% of entrepreneurs have no regrets about starting their business. Once you build systems for the basics like scheduling and payroll, you can focus on the parts of your business that actually need you.

The real challenges of starting a business

The challenges of starting a business fall into four main categories: time, money, knowledge, and emotional stamina. You'll work longer hours than you ever have, invest significant capital with no guarantees, learn multiple new skills simultaneously, and handle the mental strain of being solely responsible for success or failure.

Time commitment reality

About 33% of small business owners work more than 50 hours per week, and 25% work more than 60 hours a week. Your weekends disappear and your evenings belong to the business. A huge chunk of those hours goes to tasks that don't grow your business, like tracking employee hours, processing time off, handling scheduling conflicts. You're building the business while simultaneously running it, which means both get done slower than they should.

Financial investment and cash flow pressure

The average small business owner spends $40,000 in their first full year, and that money goes out long before revenue comes in. The cash flow pressure is constant—you owe suppliers in 30 days, but customers pay you in 60. According to U.S. Bureau of Labor Statistics data, 21.5% of businesses fail in their first year, and running out of cash is one of the most common reasons.

Knowledge and skill gaps

You're learning five different jobs simultaneously with no training period. Marketing, accounting, legal compliance, HR, operations, and sales. On top of that, every mistake costs you. So if you hire the wrong person and that's months of wasted salary, choose the wrong marketing channel and your limited budget is gone. You're making critical decisions with incomplete information, knowing that wrong choices directly impact your bank account.

Emotional and mental toll

You're responsible for everything, and that weight sits on you alone. 62% of business owners say the stress of ownership is worse than they imagined. You're making decisions at 2 AM that affect whether your employees can pay their rent. There's no manager to escalate to, no coworkers to share the burden with, no HR department to handle hard conversations.

These challenges are universal, not personal

These challenges are real and substantial, but they're also predictable. The businesses that survive aren't run by people who find it easier, they're run by people who expect it to be hard and plan accordingly. That means building financial buffers, learning systematically, protecting their mental health, and finding ways to handle repetitive admin work efficiently. The less time you spend on scheduling conflicts and payroll calculations, the more time you have for work that actually grows your business.

Does industry matter? Difficulty by business type

Industry matters a lot when it comes to difficulty. A service-based consulting business and a full-service restaurant both require starting a business, but they're not remotely the same level of challenge. Startup capital requirements, regulatory complexity, operational demands, and time to profitability vary dramatically by industry.

Service-based businesses

Service businesses are the easiest to launch. You can start consulting, freelancing, coaching, or bookkeeping from home with little more than a computer and professional expertise. No inventory to manage, no physical location to lease, and you can often start solo without hiring employees. The main challenge is finding and retaining clients, not building infrastructure.

Online and e-commerce businesses

Online businesses have lower overhead but more complexity than services. You avoid paying for retail space and can reach customers anywhere, but you're dealing with inventory management, shipping logistics, and payment processing. Digital product businesses (courses, software, downloads) have even lower barriers since there's no physical inventory. Customer acquisition in crowded digital marketplaces remains the primary challenge.

Brick-and-mortar retail

Physical retail requires significantly more capital and commitment. You're paying for location lease, build-out and renovations, inventory investment, point-of-sale systems, insurance, and employees to staff the store. Location selection becomes critical since foot traffic directly impacts revenue, and you're locked into a lease whether business is good or slow. Managing physical inventory, theft prevention, and in-person customer service adds operational layers that online businesses don't face.

Restaurants and food service

Restaurants represent the highest difficulty level across almost every dimension. The U.S. Small Business Administration notes the significant difference between a simple food cart and a full-service restaurant in terms of startup requirements. You're dealing with health department regulations, food safety compliance, specialized equipment, perishable inventory, and thin profit margins. High employee turnover means constant hiring and training. Finally, managing hourly teams adds major operational complexity; scheduling shifts, tracking hours, handling time-off requests, and processing payroll for a rotating staff takes significant time away from actual restaurant operations.

Are you ready to start a business? A self-assessment checklist

No one feels completely ready to start a business, but there's a difference between normal nervousness and legitimate unpreparedness. The question isn't whether you feel ready, it's whether you have the financial runway, time availability, and skills to handle what's actually coming.

Financial readiness

Ask yourself these questions honestly:

• Do you have 6-12 months of personal living expenses saved separate from startup capital?
• Can you cover initial business costs ($10,000-$50,000 for most businesses) without depleting all your savings?
• Can you afford to not take a salary for at least six months?

If you answered no to more than one of these, focus on building your financial cushion before launching.

Time and life situation

Consider your current reality:

• Can you commit 50-60+ hours per week for the first year without burning out?
• Do your personal responsibilities realistically allow for this time commitment?
• Is your family or support system prepared for what this will require from you?

If your life situation doesn't support the time commitment, wait until circumstances change or plan for a longer, part-time launch.

Skills and industry experience

Assess what you're bringing to the table:

• Do you have direct experience in this industry or a closely related field?
• Are you willing to learn accounting, marketing, sales, and operations from scratch if needed?

Gaps here are fixable through learning and hiring, but go in knowing what you don't know.

What to do with your answers

If you answered no to multiple questions in any category, that's not a stop sign—it's a roadmap. Build your savings cushion. Clear your schedule. Have honest conversations with your family. The businesses that survive aren't started by people who check every box perfectly. They're started by people who know their gaps and plan around them.

What makes starting a business easier in 2025

Starting a business is still hard, but it's easier than it's ever been. Barriers that once required significant capital or expertise (building a website, processing payments, managing employees, reaching customers) now have affordable, accessible solutions. The core challenges remain, but the infrastructure that used to stop people is largely solved.

Lower startup costs for digital businesses

You don't need a physical storefront or inventory for many business types anymore. Website builders, payment processing, and hosting are either free or cost less than $50 per month. An online service business can launch for under $500 total, which would have been impossible 20 years ago when you needed printed materials, phone lines, and office space just to look legitimate.

Free and low-cost business education

The U.S. Small Business Administration provides free counseling, training courses, and detailed guides for every aspect of starting a business. SCORE offers free mentoring from experienced business owners. These days, you don't even need an MBA or expensive consultants to learn the fundamentals.

Access to funding and support

SBA loan programs offer government-backed financing with lower barriers than traditional bank loans. Crowdfunding platforms let you validate your idea and raise capital simultaneously. Online lenders provide faster approval than traditional banks. There are more diverse funding options (from microloans to revenue-based financing) than ever before.

Ability to start small and test

You can launch with a minimum viable product and improve based on real customer feedback instead of betting everything upfront. The side hustle approach lets you test your business idea while keeping your day job and income. An online presence means you can reach customers locally or globally from day one. The all-or-nothing launch is no longer the only option.

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FAQs How hard is it to start a business

How hard is it to start a business with no money?

Starting a business with no money is extremely difficult but not impossible. You'll need to choose a service-based business model that requires minimal upfront investment (consulting, freelancing, coaching) and bootstrap everything. This means working your day job while building the business nights and weekends, which extends your timeline significantly. You'll trade money for time—doing everything yourself instead of paying for help or tools. Most businesses require at least $10,000-$50,000 in startup capital, so starting with nothing means a much longer, harder path to profitability.

What is the hardest part of starting a business?

The hardest part isn't the initial launch—it's managing daily operations while learning multiple new skills simultaneously. You're handling finance, marketing, HR, and operations all at once with no training period. Cash flow management creates constant pressure as expenses go out before revenue comes in. For businesses with employees, managing schedules, tracking hours, and running payroll adds major complexity that takes time away from actually growing the business. The emotional toll of sole responsibility and decision-making fatigue wears on most new owners more than they expect.

How long does it take to start a business?

Most businesses take 6-12 months of intense setup before opening, though simple service businesses can launch in weeks while restaurants or retail stores may take a year or more. After launch, expect another 2-3 years before reaching stable profitability. The timeline depends heavily on your industry, available capital, and whether you're transitioning from a full-time job or going all-in immediately. Many owners underestimate this timeline and run out of cash or energy before the business becomes sustainable.

Is it worth the difficulty?

Starting a business is hard. Genuinely, consistently, exhaustingly hard. But the difficulty has a purpose. You're building something that's yours, creating value in your community, and gaining control over your work life. The 92% of entrepreneurs who say they have no regrets aren't ignoring the challenges, they're saying the payoff justified them.

You're ready to start if:

• You have 6-12 months of living expenses saved separate from startup capital
• You can commit 50-60+ hours per week for at least the first year
• You have a support system that understands what you're signing up for

You should wait if:

• You're depending on immediate income to pay your bills
• Your personal situation can't support the time commitment right now

The businesses that make it aren't run by people who found it easier. They're run by people who expected it to be hard and handled predictable challenges efficiently. Managing schedules, tracking time, and processing payroll shouldn't consume the hours you need for strategic decisions. Homebase handles the team management basics automatically so you can focus on growing your business. Try Homebase free.