Setting-up and starting your own business unit is thrilling and challenging at the same time. Market survey says that every 3 out of 4 business close within 3 years due to non-compliance of policies and strategies.
Settingup of business can face economic, political and social constraints, manpower issues, concerns about raw material supply and problems of market demand, strength of competition and condition of the economy.
There are few dynamics that should be considered before starting up a business in order to assure long term success and profitability.
One of the key factors that needs to be taken into account before setting up a business is the experience and exposure of the entrepreneur. If someone wants to take-up a new venture, he/she should work in that domain or industry for a couple of hours in order to gain adequate knowledge and expertise.
For setting up a business of a product or service it is extremely important to study the market, assess the demand for the product or service and analyse the competition and its strength and weaknesses. It is also advisable to conduct appropriate market surveys and interact with potential customers.
One of the prime factors to consider before setting up a new business is the present economic condition. If the economy is down and descending it is better to wait and watch the situation improve or start in a small scale. But there are certain business set-ups that are recession proof and do not depend on the condition of the economy. They are healthcare, education, energy, fast food, candies and skilled services.
The most important among all the factors to consider before settingup a business is finance or funding for the set-up. Adequate and appropriate funding from the right source is the foundation of every new venture.
A well-formatted and devised business plan is needed prior to take-off. The plan helps in structuring of ideas and sharing the plan with others may help to gain financial assistance, business partners and potential investors.
Every new business requires immense skilled man power who gel with the business environment and enhances productivity in the set up.
Every entrepreneur should remember that time is very vital for their new business set-up. Starting from small scale home business to large scale retail chains, time is needed for client handling, paperwork, operations and admins, complaint resolution and maintaianence of accounts and records.
Setting up a business is inspiring, thrilling and tiring at the same time. A person can gain stress and anxiety due to excessive physical and mental work pressure, sudden changes, and client escalations, scarcity of fund, orders and demand.