You’re an entrepreneur who is excited about starting a business. But, there are many steps to successfully starting a business. It can even be overwhelming when you’re trying to figure out what to do first. Here’s a guide to help you get started.
Selecting The Line of Business
The line of business is the foremost decision that involves choosing the kind of product to produce. Analyzing its existing and future market demand, profit considerations and the level of technical know-how possessed by the entrepreneur.
Permissions and Legality of Business
To start a business, you must comply with the local rules and regulations of the government. This might include the necessary permissions and permits required to start a business. Check if the business idea of yours is legal to run according to the law. Check for any special permissions and permits required to open a store. Also, the safety of working environment or any other day to day operations of your business.
Scale of The Business
Once the line of business is selected, the entrepreneur needs to decide the scale of the business. That is, the business size, whether to operate on large scale or small scale. The choice of scale of business is made on the degree of risk embedded in
- the line of business
- the ease of obtaining capital and
- the projected demand for the product
A larger scale of business is preferred if the risk involved is low; and the entrepreneur is confident about the high demand for the product. Similarly, the greater the ease of obtaining capital, the greater is the ease of operating a business on a large scale and vice versa.
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Location
The choice of business location is dependent on numerous factors such as, easy and cheap availability of raw material and labor; well-connected transportation facilities; power and other infrastructural facilities. Generally, locations available with good infrastructure are preferred.
Financial Requirement
Finance is required for every aspect of business. For instance, from the purchase of raw material and machinery to further investment for the growth of the business. Therefore, while starting a business, the availability of alternatives to raise funds must be carefully analyzed.
Efficient Workforce
A competent and trained workforce is the basic input to carry on various business activities. In this regard, the entrepreneur must appropriately identify the requirement of human resources for the business. Specifically, both at the worker level and at the managerial level.
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Physical Requirements
These requirements include machinery, other equipment, tools and technology that add to the efficiency of a business. The entrepreneur must carefully consider and decide the physical requirements on the basis of the nature and production scale of the business.
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