- High Startup Costs
- Advertising
- In some industries one of the most important startup items
is an expensive advertising campaign. This is certainly true for
fast-food, soda, personal care products etc. Imagine trying to
launch a new national fast-food chain or premium brand shampoo.
Without huge advertising expenditures it would be difficult to
be noticed. Such expenditures are important barriers because the
value of a failed advertising campaign is zero. None of the investment
spent on advertising can be recouped at all and so it is even
more difficult to find financing for such ventures.
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