Going Into Business? Key Factors To Consider
June 26th 2008 04:46
So you will finally take the plunge - become an entrepreneur! This means taking concrete action to make your business vision a reality.
How can you tell then if you are cut out for business? Various researches say there are factors that contribute to the business success of an individual. These are :
1. Cost of doing your business
Know your financial requirements. The amount you need would greatly vary depending on the type and scale of business you have in mind. Is it a T-shirt printing business? A video rental shop? Well, then, you may need only a modest amount which you can source out from your own pocket. But if you are thinking of something bigger such as putting up a mall or a factory, you will be requiring much more resources and often elaborate resources to raise money. The cost of doing business includes logistics and transport costs, utilities, credit taxes, incentives, informal and extra-legal costs. While the cost of producing products and delivering services may include raw materials, supplies, semi-processed goods, cost of servicing customers, professional services, labor costs, overhead expenses, rent, etc.
2. Market opportunities
What is the present political and social condition of the place you're going to conduct your business? Discern the attractiveness of the market opportunities. It includes the actual and potential demand and supply conditions, market and customer characteristics, needs and wants, market structure and environment, market trends.
3. Know yourself, the entrepreneur. Your characteristic traits and attitudes. Are you the kind of person who can get a business started and make it go? Have you ever been in a business like the one you want to start? Have you ever worked as a manager? Any business training in school? Assess your personal conditions, background, talents, skills, education, training and history.
How can you tell then if you are cut out for business? Various researches say there are factors that contribute to the business success of an individual. These are :
1. Cost of doing your business
Know your financial requirements. The amount you need would greatly vary depending on the type and scale of business you have in mind. Is it a T-shirt printing business? A video rental shop? Well, then, you may need only a modest amount which you can source out from your own pocket. But if you are thinking of something bigger such as putting up a mall or a factory, you will be requiring much more resources and often elaborate resources to raise money. The cost of doing business includes logistics and transport costs, utilities, credit taxes, incentives, informal and extra-legal costs. While the cost of producing products and delivering services may include raw materials, supplies, semi-processed goods, cost of servicing customers, professional services, labor costs, overhead expenses, rent, etc.
2. Market opportunities
What is the present political and social condition of the place you're going to conduct your business? Discern the attractiveness of the market opportunities. It includes the actual and potential demand and supply conditions, market and customer characteristics, needs and wants, market structure and environment, market trends.
3. Know yourself, the entrepreneur. Your characteristic traits and attitudes. Are you the kind of person who can get a business started and make it go? Have you ever been in a business like the one you want to start? Have you ever worked as a manager? Any business training in school? Assess your personal conditions, background, talents, skills, education, training and history.
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