Factors to Consider in

Starting a Business
FOCUS AND DIRECTION
• Have a very good objective for the business.
• Establishing a clear and documented vision-mission
and strategies.
SOURCES OF CAPITAL
• Different sources of capital are available, the only
catch is determining the needed amount of funds
where it will be sourced from. Examples of where we
can source out capital are personal funds, financial
support from family and friends, retirement funds,
loans from financial/banking institutions
GOOD NETWORK
• Being engaged to professionals, specific
associations as well as informal networks like
friends, classmates or former classmates boost
connections of your business turning out to
advantages like relationship to suppliers that are
not always available to others.
LEGAL REQUIREMENTS

Law must be strictly followed by anyone,

therefore in running a business, understanding
the regulations implemented by a constitution of
a locality is very vital for the continuous operation
of a business.
DEGREE OF RISK
• Risks are different for each nature of business. The
limited market, stiff competition, high cost of
financing and few supplies of raw materials dictates
much of the risk level for each industry.
RESEARCH AND DEVELOPMENT
• Innovation is a factor that keeps the business
and its products busy in the market resulting to a
increase or decrease in its customers. Success
through innovation is well connected with a very
strong research and development of an
organization.
PERSONAL COMPETENCIES
• Before running a business, an entrepreneur must
know his capabilities. These capabilities will be
the basis to where the business can go, grow and
glow.
AVAILABILITY OF RESOURCES
• Resources like raw materials, human resources,
and machineries/equipment should be in an
adequate level from the get-go of your business.
As an entrepreneur, knowing the sustainability of
these resources is a must.
Other Critical Factors
AREA ASSESSMENT QUESTIONS/ITEMS
1. Basic Feasibility of the
Will it Work? Is it legal? Is it
Venture Needed?
2. Competitive Advantages What is the product’s strengths over the
of the Venture competitors?
Benchmarking
3. Buyer Decision What are the demographics of the
customers? How much is their
interest with the product?
4. Marketing of the Goods Target market, Cost of Advertising and
and Services establishing the brand
Other Critical Factors
AREA ASSESSMENT QUESTIONS/ITEMS
5. Production of Goods and The adequate level of resources,
Services technology, raw materials for production
6. Staffing Decision Recruitment, Selection, and Controlling
of Personnel
7. Control of the Venture Monitoring records and assessing
performance of employees
8. Financing the venture Continuous working and operating
capital