Factors to Consider in Starting a Business

Entrepreneurship

Photo by Oasden / CC BY-SA 3.0

Today’s • Ways to start a new venture
Topic • Important factors to consider
Ways to start a • Start-up
• Buying an existing business
new venture • franchising
Important Factors
to Consider
 • Grasp of the business and where it will be headed many
years from the start of operation. It means that there
Focus and should be a clear and documented vision-mission and
direction strategies to begin with. Start right with the “beginning
with the end in mind”.
 • Personal funds, family and friends, retirement account,
banks/financial institutions, a government loan, and/or the
Sources of capital stock market.
 • Building good relationships and working with other people
could help start the business. Formal networks lie
association and professional groups as well as informal
networks like childhood friends, family members and
former classmates, can be drivers to build self confidence
Good network and direction, providers of information that are not readily
accessible to ohers, suppliers of raw materials and serve as
mentors/coaches.
 • Know the laws and regulations that govern that type of
business that will be opened to avoid major problems that
Legal can aries if legal requirements are overlooked. Ie.
Copyright and patent laws, environment and sanitation,
requirements labor laws.
• Mining and quarrying… businesses with restrictions
 • Risky business when the probability of failure is extremely
high
• Limited market, stiff competition, high cost of financing the
Degree of Risk business and few supply of needed labor.
 • There should be a strong research and development that
should be undertaken. The government should provide
adequate support to inventors, scientists and engineers
and their new technologies to commercialize their R&D
products.

Research and • The presence of new technology, science and knowledge

transfer from the universities and public research centers
development to new and growing business, and the support for the
creation of new technology based ventures are good
indicators to start a new business in this area.
• ELECTRIC CARS, ACTION CAMERA PHOTOGRAPHY
 • Creativity, opportunity seeking, self confidence,
persistence, commitment and risk taking, as well as
Personal technical background and related experiences needed to
run the particular business are necessary to start running
competencies the business.
 • Raw materials

Availability of • Human resources

• Machineries and equipment
resources
 • Basic feasibility of the venture
• Competitive advantage of the venture
• Buyer decision in the venture
• Marketing of goods and services
Other critical • Production of the goods and services
factors • Staffing decision in the venture
• Control of the venture
• Financing the venture.