Barriers To Consider When Starting A Business

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					Ok so what exactly are we talking about when we say entry barriers? Well an entry
barrier in business boils down to how hard or easy it is to set up a business. There are
different factors that have to be looked at when considering such barriers. They vary
for each particular business and industry. And of course all businesses are influenced
by how much money is available to be invested in a business.

The barriers for each business will be different but the factors that need to be looked
at will be relatively the same. Let's start with the most basic factor of all, money. How
much money you have to work with influences a lot of things. A good example would
be that maybe you would like to start a restaurant. Well most restaurants can cost
$100,000 and up to get started. Are you able to come up with that kind of cash? If
you've only got about $10,000 then maybe a hot dog cart is more within your budget.
Startup costs are the single biggest factor to consider.

Another important factor is location. Some businesses are not suitable for certain
cities and towns. Often a town's population may not be large enough to support
certain businesses. Some times there are not enough potential customers and other
times there might be a lack of qualified people for your workforce. Either way not
every business is suitable for every town, city, or even sometimes a state.

Next we have to concern ourselves with how much competition exists within both an
industry and your desired location. Let's take for example you would like to open a
sandwich shop. Now your startup costs for your sandwich shop should be reasonable
enough. But do you want to be competing against the likes of big chains such as
Subway and Quizno's? You might find it really hard to compete against such heavy
weights. Not only do they saturate the industry but they seem to be on nearly every
street corner.

Your workforce can be another critical factor to consider. If you can't hire the people
you need how can you expect to be able to achieve long term growth. You need to see
what kind of skills would be required to operate your business as well as how many
people might be required over any sort of long term growth plan. You wouldn't want
to find yourself unable to hire the workers you need just as you get rolling along now
would you?

These are just some of the questions that you will need answers to if you are to choose
a business that you can succeed with. But it is critical that you carefully consider these
factors carefully. Picking the wrong business can cost you both time and money.
Besides the fact that you want to choose a business that is going to be right for you.

				
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