This write up describes different factors which need to be kept in mind before starting your own business. It mainly talks about a business from a proprietorship point of view, rather than from a corporate point of view. Thus it is intended for small business.
To start a business entails a great deal of effort in order to achieve desire result. On the other hand, knowing your priority and the key factors for a business start up would make the process a lot easier and enhance your chances to enjoy success with your business.
Below are some of the general factors you need to look into when starting a business;
Knowledge/Expertise of the business
Any business whatsoever requires some amount of basic understanding and experience. The proprietor needs to be aware about the business he intends to start. Knowledge and expertise are important factor in starting a business.
Market/Demand
As soon as the decision is taken on the business you intend to start, the next step is to explore the demand / market for the product. Some products will only have a local market for them whereas others can be booming on an international level.
Total Business Costs
It is vital to correctly review the total cost required to set up and run the business successfully.
Capital
After identifying the initial costs required for starting the business, the financing pattern will need to be decided. The financing pattern will be mainly by way of capital introduction by the owner and borrowed funds. You will need the money to purchase equipment or supplies, securing business license, hiring your employees, and in the creation of your products.
Competition
Before entering new business, information about market competition needs to be found out. In case a product is a monopoly then the competition will not matter. Otherwise the success of the business will depend upon the demand and supply gap.
Location
A good location will go a long in improving the sales of a business and its customer base deciding on an optimum location for the business is a strategic and an important one.
Regulations
Setting up a new business would require compliance with various laws & regulations. Each country is governed by separate laws and regulations which require that any new business be registered with certain authorities and meets certain compliance.
Return on Investment
Return on Investment (ROI) is calculated as Net Profit divided by the Investment made. The ROI is low in the initial years and is expected to grow on a year on year basis. This can be determine during the planning for the business.
Technology
It is always better to invest in the best technology at the time of startup itself. Technology would include plant & machinery as well as latest office equipment. One should not exclude the software required to monitor the business.
Target Market
This is the most crucial aspect when starting a business. You need to conduct an extensive research to identify which are your potential customers and how you can reach out to them.
Management
Starting a business and managing it is not an easy task. it involves a great deal of planning, control and decision making. It is therefore important to identify your management approach in your business plan so you know how to handle the daily operations and who are in charge for those duties.
Market Research
You must conduct intensive market research on companies similar in nature.
adbrite
No comments:
Post a Comment