Below are some of the factors to consider when starting a business:
- Entrepreneurial traits
- Business management and technical skills
- Long term market demand for product/service
- The cost of starting, operating and personal finance
- The level of competition – direct, indirect and future
- The business location – zoning law and appropriateness
- The rules and regulations for operating the business.
- Legal registration
- Tax compliance
- Relevant licenses
- Code of conduct
- Environmental requirements
- The anticipated profit.
- Importance of profit
- Adequate to cover inflation rate and opportunity cost
- Adequate to cover all expense, savings and investment
- The machinery, tools and equipment required and their cost.
- Lease/buy decision
- Calculation of lease/ buy decision
- Maintenance cost
- Availability of spare parts
- Cost of service
- Availability of technical support
- Technological advances
- The source of supply of goods/raw materials.
- Identify long term supply sources/ reliable source
- Quality of supply
- Alternative sources of supply
- Terms of supply should be favourable
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