Saturday, September 13, 2014

Things one should consider before setting up business

Business is exchange of money and money’s worth, with things, ideas, experience, knowledge, goods and services, etc. the motive of business is to make investment and earn some profit in course of time. Investment can be in terms of physical as well as non-physical materials or things. Every business should have some goals to achieve. While setting any business, you should do much homework, if you wanted to set successful business. You should consider various things like customer, environment, raw materials, technology, and scope of business while setting up business. These terms of are described below;
i)                    Environment: Environment is must important for setting up any business. Business operates in environment. So before setting up any business you should analyse business properly, it helps you know which business would be appropriate in particular place. Business environment consists of various elements that provide opportunities and threats to your business. If you set your business according to opportunities available in the environment then your business would be successful. Suppose you are about to set home business of selling pickle, and the people of your locality like pickle of mango. In this case if you do analysis before setting up business, you would know the opportunity i.e pickle business of mango, and if you set business of pickle business than that business is sure to get success in course of time. 
ii)                   Goals: Goals of business are motive of setting up business. Before setting up business you should define its goals. Goals should be set according to opportunities available in environment of business. Goals provide the reason of existence of business. Setting of goals of business is critical part of business. Goals should be flexible; a rigid goal is threat to any business. For example you set a school for providing primary level education to students of your locality, because there was no any school in your locality that provides a primary level of education. After sometimes, you would reach up to that goal, and now the need of providing secondary, level of education arises, in this case you should be able to provide these services to the students of your locality.
iii)                 Scope of business: While you are setting up business depending upon the capital invested, its scope should be determined. Scope of business should be clearly known, and defined by you. Scope of business defines the areas it can cover. Scope is the process of determining future expansion of your business that you could do. It helps your business to have perpetual succession and continue its operation when primary goal of your business is achieved by setting another goal. Suppose you have established
iv)                 Raw materials: raw materials are inputs that business uses for producing output. They can be both in physical and non-physical form. Physical raw materials include inputs like capital, labours, materials etc. Non-physical includes planning, organizing, controlling etc. ascertainment of all these things if determined before setting up business protects the business from facing crises of supply of raw materials during its operation that helps the business run smoothly.
v)                  Customers: customers are consumers who pay money for consuming goods and services supplied by business. They are the main source of income for any type of business. A business would be successful thus if it determine the targeted consumer of the goods and services produced by business. Consumers always want better and sophisticated goods, so business should know wants and changing attitude of consumers.                                       
A business would be successful business if anyone is well prepared and got enough knowledge what is he doing. When one knows about pros and cons of business that may occur in future in the present time, he could be well prepared to take advantages of pros, and take action to deal with cons when that occurs in future course of time. To know about all these if one pays attention on above mentioned points it would help him to great extent.

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