1.
Identification
of Business opportunity: -An important tool in the identification of business
opportunity is the 'SWOT' analysis. A systematic approach to understand the
environment is the SWOT analysis i.e. strength, weaknesses, opportunities, and
threats. An analysis of these factors thoroughly is important for the
existence, growth and profitability of an organization.
2. Raw Material: -while starting
a new business the availability of raw material is basic question. What type of
raw material is required? What are the quality and what quantity of raw
material is to be purchased?
3. Technology and
Equipment:
-The equipment is more important for better production, and for that technology
is also important. Proper selection of equipment results in good production.
4. Human Resources: -without human
factor, all the factors of production are useless. Man power is the most
important factor in the management of any organization so when starting a new
business should be considered the requirement of skilled, semi skilled
personnel for production and where they are easily available.
5. Financial
Planning:
-No one can start any business without capital. The business can be run
successfully and without obstruction only after the availability of sufficient
capital. The capital is required to purchase for fixed assets and working
capital for daily working expenses. So it is necessary to have new sources of
financial sources.
6. Utilities: -when starting
a new business it is known that requirement of power, water, fuel, steam, and
other consumables quantity and their value. It is essential to get the
clearance certificate from government authority i.e. pollution control board.
7. Selection of
Location:
-Every place is not suitable for every type of business. For the manufacturing
that place should be suitable where raw material is easily available and labour
is cheaply and easily available.
8. Forms of
Business organization: -When choosing a specific form of business
organization following factors are to be taken into consideration.
Entrepreneur's personal capacity to manage and control the business at any
time. Investment capacity, professional background and technical support for
business are essential factors.
