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12 Factors To Consider Before Starting Own Business

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									?Starting own business is more difficult than buying an existing business. To make
building a business as easy as possible, small business owner must consider some
factors to help setting up a lucrative business. You must consider the following twelve
factors before starting a business.

1. Set Objectives. The first factor to consider is to set reasonable objectives for the
business. One of the objectives is likely to be that the business must make profit at the
end of the period.

2. Evaluate The Market. To evaluate the market is to do market research. Lots of
entrepreneurs do not have the skills to conduct this research themselves. Some of
them don't have enough money to hire professional market researchers. Many small
businesses fail because there is no market for their new products.

3. Find Out The Cost Of Required Assets. Before starting own business, make sure
you find out the operating assets and estimates their costs. You can do this by going to
the suppliers to get the original cost.

4. Consider The Personnel Requirements. The personnel requirement needs to be put
into consideration when planning to starting own business. It will help the industrialist
to work out the difficulty in personnel policy on promotion and training.

5. Prepare A Pro-forma Income Statement. A pro-forma income statement shows you
how much money the business is expected to make when it begins operation. It gives
outline of the estimated or forecasted profit a business is going to make.

6. Select The Right Legal Form. A businessman must decide whether the new firm
will be a sole proprietorship, a partnership or a corporation. Many small businesses
are sole proprietorship. The industrialist should think about the advantages and
disadvantages of each business form before starting own business.

7. Raise The Needed Capital. Several new businesses normally have the problem of
raising enough capital to startup a business. You may decide to increase your firm
capital base by borrowing from friends, relatives or loans from banks.

8. Choose A Good Business Location. A business should not just be sited where the
capitalist or business manager got an empty shop. For a business to make profit, it
must be located near the targeted customers, clients and market place.

9. Set Up Good Accounting System. An entrepreneur needs to hire a qualified
accountant to set up a good accounting system for the company. Without an
acceptable accounting system, there is no way the administrator of the company will
know whether the business is making profit or not.
10. Prepare Your Market Plan. At this time, the entrepreneur should have been
evaluated the market and the next thing is to prepare a marketing strategy to make the
business control the market.

11. Obtain The Required Permits. It depends on the area of your operation. It is very
important for the entrepreneur to get required permits before starting a new business.

12. Start The Business And Match Objectives With Performance. The final factor to
consider before starting own business is to start the trade and match objectives with
performance. If objectives and performance do not match, the small business owner
needs to adjust some aspect of the financial management or marketing plan of the
firm.

For more information about factors to consider before starting a business, click on
Starting Own Business

								
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