Following factors have to be considered before starting a new business:
1. Proper Mindset
Right mindset helps to achieve great success in business. It helps to follow the dreams of success in business.
2. Selection Or Identification Of Proper Business
This is another key factor that should be kept in mind before commencing a business. A businessman has to decide the nature of business he wants to start. Business may be manufacturing, assembling or trading. Proper business should be selected on the basis of personal knowledge, skills, capacity of earning, riskiness, resource availability, competition, and possibility of future growth.
3. Forms Or Types Of Business
There are different types of businesses like sole trading, partnership, joint stock, cooperatives etc. Businessman should choose proper type of business according to his skills, risk bearing capacity, capital requirement etc.
4. Adequate Capital
Without a capital business activities cannot be operated. Therefore, it is known as blood of business. Businessman should determine the required capital according to the nature, type and size of business. He should manage adequate volume of fixed capital as well as working capital before commencing a business.
5. Proper Business Location
Selection of appropriate location is another factor that should be considered before starting a new business. Location depends on the nature of business. Location with availability of labor and raw materials, better water supply, electricity , communication service and transportation is preferable.
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6. Government Policy And Legal Requirement
Before starting a new business, government's business and commercial policy should be studied. Business firms should follow the rules and regulation of the country.
7. Selection Of Capable Employee
Capable staffs are needed to run business activities smoothly. Efficiency of staffs plays a vital role in order to success in business. So, dedicated, hard working, honest, self-motivated and experienced staffs should be selected.
