1. Establishment of organization
  2. Proper Planning
  3. Sound Organization
  4. Sound Management
  5. Adequate Finance
  6. Efficient Marketing System
  7. Motivational relation with employees
  8. Scope for research
  9. Personality of chief

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.

  1. Identification of business
  2. Detailed investigation
  3. Forms of business
  4. Provision of capital
  5. Selection of staff
  6. Government policy
  7. Selection of location of business
  8. Office equipment and materials

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.

  1. Identification of business
  2. Detailed investigation
  3. Forms of business
  4. Provision of capital
  5. Selection of staff
  6. Government policy
  7. Selection of location of business
  8. Office equipment and materials

Identification of business:
The first factor that businessman must consider before starting a business is the identification of business. Identification and selection of particular business is very important for proper involvement and profit. It helps to give personal knowledge, interest, reduced level of risk, size and other values. Before selecting a new business a business must consider following points:

  • Personality ability, knowledge, and skill
  •  Degree of risk
  •  Profitability
  •  Competition
  •  Decision-making capacity
  • Availability of resources
     

Detailed Investigation and Research:,
In the present context, the competition has been increasing day by day, therefore,  a detailed study of the market, demand, trends of technological  development, resources availability, the degree  of competition, the degree of risk and uncertainty etc.need to be properly evaluated. Detailed information about these  aspects of the proposed business should be gathered and analyzed prior to making decisions.

Forms of business organization:
There are different forms of business organizations. The types of business vary with the difference in capital interest, merits, demerits, risk size and so on. Depending upon nature and size of business man must select the appropriate form of business. For e.g.: a small business can be started individually whereas large size organization can be started in joint stock form.

Provision of capital:
Capital is compared to the blood of business. Business cannot be started with sufficient capital. Business needs the large sum of money at start up. There is a different source of capital for the new business like; own money we borrowed capital. A businessman must take a decision regarding the easiest and cheapest source of capital before starting a new business.

Selection of staffs:
Business success  depends on upon the quality of the working people.  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 should be required. Staff should ne be selected according to the nature of business. Capable, skill, experience, honest employees should be selected

Government policy:
The policies of government regarding promotion and control largely affect the success of a business. The government formulates 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 a government.

Selection of location of business:
Location of business is the important factor where business establishes. location, where business has been started, shoud have good transportation, communication, electricity,  warehousing, banking facilities  should be considered. The location may have its own advantage and disadvantages. Once the location is selected and business is being established, it is very difficult and costlier to shift it. Therefore, a businessman selects the appropriate location for his proposed business

Office equipment and materials:
Office is the place from where all the administrative work has  to be  done. All the managerial function like planning organizing, leading and controlling are performed in an office. The equipment and materials like a table, chair, phone, 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.