Conditions for starting businesses

Conditions for starting businesses

The most obvious type of new business is when mere is a new start-up, but with their existing products, companies can get new customers similar to the ones they have already, find different types of new customers, sell in new areas or countries.

Companies can also develop new products for existing customers, existing sales areas or

Before starting a new business you have to be very confident, determined, think all the matters over thoroughly and know well how to answer such questions as: What is your product or service? Is there sufficient market demand? And what competitive advantage does

To answer these questions you need to research economic conditions you are intending to work in. You need to research your competitors and benchmark your service or product against them. You should know what the market is in general. Is it growing or in decline?

Of course a stable economy and low taxes in the country are beneficial because you can plan better when there is less.

A strong currency means that imported raw materials are cheaper.

The next point is that you should know what objectives you have for the business in the short and long-terra period, where your business is heading for. In other words you need a good business plan

Another important thing is your own background, experience and backup from your family and friends. It is very helpful if you have a good mentor both business and personal whom you can ask for advice.

Then you should solve financial problems and to handle them you need a good relationship with your bank and your bank manager.

We can notice that if in the country interest rates are low it is cheaper to borrow money to develop new business activities. Or may be you'll succeed in getting government grants.

It is also significant to organize a really good advertising campaign to promote goods or services.

Starting a new business you should take into account where to locate it, what sort and size of premises you'll need, what equipment you'll require.

Cheap rents for office or factory space are of course more attractive than expensive ones, but having your office in the right place at a higher rent may be better than having it in the wrong place at a lower one.

Good transport links are important for your employees to get to work, for sales people to get to customers and for distribution of goods if your business does it.

And the last significant thing I'd like to mention is the workforce. You must always remember that your employees will always be your most valuable asset. So you should think how many people to employ, if it's possible to hire skilled staff and if you are going to provide training courses to develop necessary skills of your employees.

High unemployment may mean that the wages you can pay are lower but you may not be able to find people with skills you want if you set up your business in an area with a high level of unemployed people.

Дата добавления: 2015-11-04