Physical facilities
Availability of physical faculties, like machinery, land, raw material and other services is very important. The decision relating to this factor will depend on the nature, size of business, availability of funds, etc.
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