Q.What factors are to be considered while starting a business? Explain.

Before actually launching an enterprise, an entrepreneur has to think through several practical decisions that will shape how the business is run and grows. …

Setting up one's own business is entrepreneurship; the person is an entrepreneur and the unit a business enterprise. The basic factors to consider:

• Selection of the type of business: Decide the nature and type of business — prefer the branch of industry/commerce offering greater profit, guided by customer requirements and one's own technical knowledge and interest.
• Size of business: Decide the scale of operation — MSME or large-scale, manufacturing or tertiary. If demand is likely to stay good and capital can be arranged, start large.
• Location of the enterprise: The place matters greatly; a wrong choice raises production cost. Consider availability of raw materials, labour, power supply and services like banking, transport, communication and warehousing.
• Financing the proposition: Arrange the capital needed — for fixed assets (land, building, machinery), current assets (raw materials, book debts, stock) and day-to-day expenses.
• Physical facilities: Availability of machines and equipment, buildings and supportive services, depending on the nature, size, funds and production process.
• Competent and committed workforce: Identify the need for skilled/unskilled workers and managerial staff, and plan how to train and motivate them, since the entrepreneur cannot do everything alone. …