factors to put in consideration when setting up a new business

Business involves selling or buying goods and services. Most people fail to succeed in business because they do not consider essential factors before setting up their business. However, when starting a business, there are several factors which should be put into consideration to ensure that it’s successful and they are as follows:-

Government Policy and Regulations
Before setting up any business one should know the rules and regulation that stipulate the ways of conducting business. When setting up a business one require to comply with some rules and regulation. For example one needs to apply for licence to avoid fines and penalty for non-compliance

The Market
The market consists of the people you will be selling your goods or service to. It is important to understand your market when setting up any business because without any potential market then your products will not sell. One should consider the size of the market for your products; hence if the market is large you will be sure that your product will be consumed. To get all the information about your target market on should conduct a survey to evaluate the potential market.

Knowledge/Expertise
It is quite difficult to excel in business which you have little or no knowledge of. One you should identify their expertise and make sure they align with the kind of business you want to venture into.

Costs
It is necessary to assess the total costs required to set up the business and ensure that it is running smoothly. For large businesses the cost will be high and for small enterprises the costs involved will be low.

Capital
Capital is essential in starting any business. After identifying all the cost involved you will have an idea on how much capital you will require. One can finance their business from either savings or loan from the bank.

Publisher: Fadiyah Sameh

Share this post