What are the factors to be considered for starting Business?



1.        Identification of Business opportunity: -An important tool in the identification of business opportunity is the 'SWOT' analysis. A systematic approach to understand the environment is the SWOT analysis i.e. strength, weaknesses, opportunities, and threats. An analysis of these factors thoroughly is important for the existence, growth and profitability of an organization.

2.       Raw Material: -while starting a new business the availability of raw material is basic question. What type of raw material is required? What are the quality and what quantity of raw material is to be purchased?

3.       Technology and Equipment: -The equipment is more important for better production, and for that technology is also important. Proper selection of equipment results in good production.

4.       Human Resources: -without human factor, all the factors of production are useless. Man power is the most important factor in the management of any organization so when starting a new business should be considered the requirement of skilled, semi skilled personnel for production and where they are easily available.

5.       Financial Planning: -No one can start any business without capital. The business can be run successfully and without obstruction only after the availability of sufficient capital. The capital is required to purchase for fixed assets and working capital for daily working expenses. So it is necessary to have new sources of financial sources.

6.       Utilities: -when starting a new business it is known that requirement of power, water, fuel, steam, and other consumables quantity and their value. It is essential to get the clearance certificate from government authority i.e. pollution control board.

7.       Selection of Location: -Every place is not suitable for every type of business. For the manufacturing that place should be suitable where raw material is easily available and labour is cheaply and easily available.


8.       Forms of Business organization: -When choosing a specific form of business organization following factors are to be taken into consideration. Entrepreneur's personal capacity to manage and control the business at any time. Investment capacity, professional background and technical support for business are essential factors.