Routes Starting a Business

Factors Considered When Starting a Business


Capital

Entrepreneurs must have enough capital to start and run a business.

Total capital required depends on the size and type of business, business location, and the amount of credit to be given to customers.

Capital can come from their own savings or loans from friends or relatives or from the bank. To get a loan, a paper should be prepared to convince the bank about the ability to repay the loan.

Location (Place of Business)

Entrepreneurs must wisely select appropriate strategic locations to ensure business success. Business must be located in a place with its high purchasing power and less competition.

The choice of location can also be influenced by other factors such as capital, rental costs, competition, infrastructure, law and others.

Interests, knowledge and experience

Entrepreneurs must have an interest in business. Interest must be sustained and not just temporary. If not, the difficult business to run.

Entrepreneurs also need to have knowledge and experience in the business to be involved in. For example, if he wants to open a clothing store, he must know where to get a stock of clothes.

Entrepreneurs also need to acquire knowledge and experience about the intricacies of management, managing money, stock, time, serving customers, keep records and accounts as well as others.
 


Experience can be gained by working as an assistant in the business field.

Knowledge can be acquired by studying in schools, colleges or universities, read the books, according to the course of business, ask questions, discuss and observe the other traders conduct their business.


The type and size of business

Entrepreneurs must determine the type and size of the business to be conducted. Type of business shall be in accordance with the abilities, knowledge and experience.

Size of business should also be compatible with the existing capital, skills, experience and knowledge to control and manage the business. Small business size easily initiated and managed. Large-scale business requires substantial capital and are not so easily handled.

Competition

Entrepreneurs must also think about the competition that will be encountered. Studies should be made to identify the competitors, the numbers, the size of their business, their strengths and weaknesses and attract new customers to their business.

Opening a business in a place that has a lot of competition would not be able to attract many customers at first. But if entrepreneurs can provide better service, a wide selection of goods, reasonable prices and satisfactory after-sales service and more customers will be attracted to kekedainya.

However, entrepreneurs need to have plans and a rigorous and thoughtful effort to rise above the competition.
 


Laws and regulations

Entrepreneurs must be aware of the laws, regulations and acts to control the business in our country so as not to break the law, regulations, or act that can prevent a business trip.

Local authorities such as local councils, the Town Council or City Hall has set the types of businesses that can be carried out in certain areas as well as the type of license required. Entrepreneurs must follow the rules set by the local authorities.

In addition, all businesses must be registered with the relevant parties except hawkers bergerai yanng hawk just need to get a license from the local authorities.

Entrepreneurs must also comply with the various laws like the sharing of the Trade Descriptions Act, Price Control Act, the Control of Supplies and others.

Source of supply

Entrepreneurs need to know the places where it gets its supply of goods as cheap and easy.

Entrepreneurs must know which providers are able to offer discounts and better credit.


Starting Own

A person can start their own business if they have the confidence and ability of course it will be successful. To start your own business, it only needs to ensure the existence of the following matters: -

Experience and knowledge

Continued interest

Sufficient capital

Supply causes

Regulations and local laws

Type of business intended to be carried

Business location

Many customers and successful entrepreneurs today have started their own business activities.

Take Over
 
Another way to start a business is to take over or merge. It means a business that is being developed to buy or merge with one other business and took over its management. Here the business development happens quickly.

When a trader to take over or merge with a business, it should use the experience and knowledge to: -

negotiate the best price

terms of the merge or take over the good of the seller.

Factors to consider when taking over a business: -

Business Finance

Basically the process of taking over other businesses must now consider measures such as making initial study to assess the financial position and profitability as well as examine and inspect each financial details provided by the owner. It aims to ensure financial business taken is strong. The study also included reviewing existing business assets such as premises, fittings and furniture that has a current value of a good. In addition, the liabilities of the business, such as loans and creditors also need to know in order not to incur high debt loads.

Benefits enjoyed

The study of these advantages can be obtained if assume the business will also be considered, for example can have the technology and expertise available. The same applies to assets such as land and buildings that can be developed for future expansion. Parts that have dominated the market and your customers would also be able to master.


Problems faced

The problems faced by the business owners want to sell the cause must also be considered for review. This meant that we could solve the problems and make it a profitable business. For example, if a company is facing stiff competition, identify and examine the competitor weaknesses to overcome competition.

Potential to grow

The future of the business must be examined whether it has the potential to thrive again. Future studies can be done by looking at the statistics and current market conditions. For example, a mini-bus services in Shah Alam held on to many residential and industrial area that has been set up where there is a lot of demand for these services. A few years ago it was not held because of the growth and development of the area is still in the pipeline.

Competition to be faced

Faced competition will also be taken into account. Do your homework and identify existing competitors. Examine the competitor's strengths and weaknesses so that we can plan or strategy to overcome them. For example, if a competitor has a particular expertise, trying to learn the expertise or seek the expertise of others as partners or taken as a partner or employed.

Interest and that there is a tendency

Interest and there should be a natural tendency when wanting to take over the business. Without interest and this tendency, of course, what they do will not reach the desired extent. Interests and preferences are the basis for starting a business, so make sure it exists in our hearts.

Heritage

There are also business inherited from parents, ancestors, or family heritage.

This type of business is usually strong and long-established in the business.

Be invited
 

Invited means a business that already exists permanently and invite someone @ a company to partner with @ merge with its parent. @ Individual company invited because of the potential that he had and that individual performance is very good company @.