Problem before Starting New Business:
Before the industrial revolution the goods were generally produced for local markets. It was, therefore, easy to establish and operate the business. The situation is now entirely hanged. The goods are produced by machines. The rate of production has gone up. There is tough competition for the sale of goods in market. Goods are produced in expectation of demand. The main factors or problems which are to be examined before establish in a new business are as follows.
1. Business Selection:
This is very important decision before starting the business because once a decision is taken and a business is established it then becomes difficult to change it, a detail investigation is conducted and utmost care should be taken up in the selection of business.
2. Size of Business:
The business size means the scale of business. Its depends upon the demand for the commodity in the market, the availability of resources technical and organizational ability of the entrepreneur etc the determination of the scale of business is an important factor to be considered before starting a new business.
3. Location:
The suitable location for starting new business is utmost important for the success of a business. The available of raw martial trained labor banking facilities, insurances facilities cheap transport etc are important consideration in the selection of site for business.
4. Capital:
Capital is the life blood of a business. Before starting a new business the capital need of the business is to be assessed. Considering financial requirements sources for raising funds etc is important factor. If owner not capable to arrange all the capital for business then arrangement shall have to be made for raising of borrowed capital from friends, relatives banks etc.
5. Physical facilities:
The selection of physical facilities depends upon the nature of a new business. In case of manufacturing concern the decision acquiring land, building, machinery, warehouses etc through purchase or nor rent basis or on lease are to be carefully undertake. In case of trading concern the purchases of shop in the shopping Center provision and proper display of goods etc need proper consideration.
6. Staff:
A new business has to acquire adequate staff both skilled and unskilled for the operation of a business. Here care should be taken that right person are selected for the right job.
7. Equipment:
Office equipment tables, chairs, telephones, stationery, air conditioners machines etc are essential for a business. The equipment improves the efficiency of the staff.
8. Legal Requirement:
Before starting a new business entrepreneur has to fulfill the law and rules enforced by the state. The non-fulfillment of legal requirement may send him to jail.
