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.
Experience
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.
Market
Scenario
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.
Economy
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.
Finance
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.
Business
Plan
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.
Manpower
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.
Strain
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.
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