Size of the firm
The size or scale of the firm is another very important decision to be kept in mind at the time of starting a business. This includes the decision to whether set up a large scale or a small scale business. These factors depend upon a number of factors like availability of finance, market condition, etc. If the entrepreneur is confident enough that the demand for the proposed product or service would be high, and he can arrange the funds required for it, then he can go for a large scale business. But if the market conditions are uncertain, risks are high and funds are not easily available, then small scale business should be opted for.
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