At this competitive age, many factors are to be considered before starting a new business. A businessman needs to complete some mental exercise and legal documentation. A well-planned business ensures success in the future. The investors (businessman) must be confident that his/her investment decision in new business is his/her good decision. An investor does not want to lose his investment. Hence, a businessman has to consider the following factor before starting a new business:
Identification of Business
Forms of Business
Provision of Capital
Selection of Staff
Selection of Location of Business
Office Equipment and Materials
Identification of business: It is necessary to understand and explain what kind of business is to be started. A businessman must know: what is the nature of the business, what are the products, who are its customers, etc. Before selecting a new business a businessman must consider the following points:
Personal knowledge and Interest
Level of risk
Availability of resources
Nature and size of business
Possibility of futures growth expansion
Detailed Investigation and Research: Once the idea of business is developed, a businessman has to make detail research about his business. He has to build confidence regarding the success of business after making research. In this activity, a businessman makes the in-depth study of the kind of business he/she is going to start. Generally, the investigation is made on the following topics:
Availability of resources
Probable economic growth of business
Probable change in government policy
Pricing of products
Forms of business organization: There are different forms of business organization like a sole proprietorship, partnership firm, joint venture company, joint stock company, and multinational company. Depending upon nature and size of business, one must select the appropriate form of business. For example, a small business can be started individually whereas large size organization can be started in joint stock form.
Provision of capital: Capital is life-blood of any business. It is required for establishment as well as giving continuity of it. Business needs a large sum of money at startup. A businessman must take a decision regarding the easiest and cheapest source of capital before starting a new business.
Selection of staffs: Human resources are the most important assets of the business. They are the key source for business success. Depending upon the nature and size of business, different kinds of skilled, semi-skilled and unskilled employees are required. A businessman has to develop an appropriate system for getting talented and skilled employees before starting a new business.
Government policy: The policies of the government regarding promotion and control largely affect the success of a business. The government formulates and enacts different rules and regulations for the healthy development of the business. A businessman has to make a detailed study of present business policy, industrial policy, commercial policy and legal procedures before starting a new business. All the business organization has to perform their business within rules and regulations provided by the government.
Selection of location of business: The location of a business is most important factors of success. The location may have its own advantage and disadvantages. Once the location is selected and business is being established, it is very difficult and costly to shift it. Therefore, a businessman selects the appropriate location for his proposed business. For example, location far from the public residence is appropriate for manufacturing company whereas high public dense is required for retail Supermarket Company.
Office equipment and materials The office is the center for all business organization. All the managerial function like planning, organizing, leading and controlling are performed in an office. The equipment and materials like a table, chair, phone, and the computer should be provided before starting any business. A well-equipped an organized office material helps to perform business activities efficiently and effectively. Therefore, proper arrangement of office equipment and materials is necessary before starting a new business.
Requisites of Business Success
Business has to perform many activities. To become a success in a complex environment, business has to consider many factors. A systematic business has to fulfill a basic requirement which ensures the success.
Establishment of an Organization
Sound Organization Structure
Efficient Marketing System
Motivational Relation with Employees
Scope for Research
Personality of Chief
Establishment of Organization: The objective is the ultimate goal of an organization. They are the reason for business existence. Therefore, it is necessary to set the objectives in an easier and simple language. Without the establishment of objectives, an organization couldn't get its existence.
Proper Planning: Planning is the process of deciding in an advance for what is to be done next. Planning guides and directs the activities of employees towards the achievement of objectives. It defines the complete set of policies, program and methods of completing work. Therefore, it is necessary to formulate appropriate plans to ensure that objectives are achieved.
Sound Organization Structure: Sound organization structure ensures the success of any business. The appropriate decision of distribution of work responsibility and authority is required for the sound organization. A sound organization structure also ensures the effective communication from the top level to lower level organization. Therefore, a sound organization structure is required to ensure the success of the business.
Sound Management: Management is the backbone of the organization. To be successful, a business organization needs technically and theoretically managed teams. The management of the organization must be effective in all managerial function like planning, organizing, leading, controlling etc.
Adequate Finance: Finance is the lifeblood of any organization. Money is required for establishment of business as well as giving continuity to the business. Business needs initial capital to purchase land, building, furniture etc. whereas business needs working capital to purchase raw materials to pay the salary of staff’s etc. Therefore, the appropriate provision should be made to ensure the business success.
Efficient Marketing System: Marketing is a most important activity of a business. It is concerned with informing customers and selling products to them. In the modern age, products couldn't be sold without appropriate marketing system. To gain success, a business has to develop the most effective marketing system.
Motivational Relation with Employees: Employees are the most important human assets of the business. In order to successfully achieve the objective of the business, a business has to maintain motivational relation with employees. Employees will not work because of fear and pressure. Therefore, the management must have convincing relation with employees. A motivated worker gives higher performance.
Scope for Research: The environmental factors like customer taste, preference, habits, technology, government policies etc. are changing day by day. To understand the changes and adopt the new environmental business, research is most important.
Personality of Chief: The chief executive manager is the key person in the organization. The personalities of the chief executive manager are dressing, body structure, the way of communication and the image of business in society. Therefore, for the success of business, its chief executives must have the attractive personality.
At this competitive age, many factors are to be considered before starting a new business. A businessman needs to complete some mental exercise and legal documentation. A well-planned business ensures the success in future.Competition has been more competitive and strong due to which business has to face several problems. To reduce the rate of business failure, the investors (businessman) must be confident that his are here investment decision in new business is his/her good decision. An investor does not want to lose his investment. Hence, a businessman has to consider the following factor before starting a new business.
Identification of business
Forms of business
Provision of capital
Selection of staff
Selection of location of business
Office equipment and materials
_______are the considerations before Starting a New Business.
Selection of business All Forms of Business Detailed Economy
________is the life-blood of business.
extra auxiliary Poor Capital
__________are the office equipment .
ALl Computer Telephone Furniture
___________are the requisites of Business Success.
Personality of business man All Proper planning Well-defined objectives
Proper planning and effective policies can help the business to minimize the____
save the business risks remove the losses All
__________is the art of achieving desired results through proper utilization of resources.
Management Trade Finance Industry
________refers to the surroundings of the business.
Business environment None Internal Environment External Environment