10 Basic Factors for Starting a Business
Starting a business requires effort and various resources are employed to achieve the objectives of business. Now the complexities of business have increased a lot and various human, physical and financial resources are required to start a business. The success of the business depends upon the ability of the entrepreneurs or the starters who anticipate problems and solve them with minimum cost and time. For example, to start a factory, plans are made regarding the location of the business, kind of equipment, the layout of the shop, purchasing and financing needs, recruiting and hiring workers, etc. These plans and requirements become complex with the size of the business.
Some of the basic factors which must be kept in mind while starting a business are as follows:
10 Basic Factors for Starting a Business
All those economic activities, which are connected with production, purchase and sale of goods or supply of services with the objective of earning profit is known as Business. The term ‘Business’, means busy-ness or ‘state of being busy’ in economic activities. The activities consist of production or purchase of goods for sale, or exchange of goods or supply or services to satisfy the needs of people. Business requires dealing in goods and services on a regular basis and there is always uncertainty of return.
In the words of Lewis H. Haney, “Business may be defined as human activity directed towards producing and acquiring wealth through buying and selling goods.”
In the words of Wheeler,” Business is an institution organised and operated to provide goods and services to society under the incentive of private gain”.
Table of Content
- 10 Basic Factors for Starting a Business
- 1. Selection of line of Business
- 2. Size of the firm
- 3. Choice of form of ownership
- 4. Location of the business enterprise
- 5. Financing the proposition
- 6. Physical facilities
- 7. Plant layout
- 8. Competent and committed workforce
- 9. Tax planning
- 10. Launching the enterprise