For starting new business first thing needed is the ability to take risks in other words we call it the spirit of entrepreneurship. Other things needed to start new business are ideas, capital, planning and managing skillfully. All these things can be got from the market or can be arranged and managed somehow but the spirit of enterprise is in the base of starting any business however small or big.
Every entrepreneur seeks opportunity to start new business. First he looks in to market and grabs that opportunity for business. Then he needs to consider how much capital he will require and from where he get that finance. How much fund he has and how much he can get from other sources. This creates question of ownership of the firm. That firm can adopt sole proprietorship, partnership, private or public company or cooperative society. This decision depends on how much finance he requires now how much he wants to expand in future and how much he wants to create reserve for adversities.
To start with the place of operation is very important. Where should we locate our office and our production unit is an important decision and our comfort of running the business depends on it. Our office should be located in such place which is near to the customer and located in a good area for our office creates the first impression and having a good location helps a lot in negotiations with customers and suppliers. Production unit should be located in such place where the availability of labour is good and also transport facility is good and also land is cheap so as to create bigger store house.
Also the cost of finance is important. If we have invested our own money then we needn’t worry about the interest on the finance, if we have borrowed money from bank then we need to worry and lastly if we have taken money from the private lenders then we need to worry much. We should be able to gain all the licenses and the machinery and the raw material fast enough to stop the building up of the tension due to increasing interest on the borrowed money. Good and trusty manpower is in the base of any successful organization so we should choose our staff with care.
Advertising starts as soon as we start our production. Advertising is the face of any new company and it is the thing which can create our image and build our brand. Proper choice of media depending on our product or service is also very important; especially when we have limited funds and limited time before the actual launch of the product in the market. Quality of the product is also very important for any advertising can bring the customers but it is the quality which decides that they will stay with us or not. Similarly customer relations are also vital and should not be neglected. Customers should be attracted by our product and service and then only they will give us second and subsequent chances of doing business with them.
In short starting any new business is very thrilling and comparatively easy but to maintain the business in a profitable way requires skill and patience.
Every entrepreneur seeks opportunity to start new business. First he looks in to market and grabs that opportunity for business. Then he needs to consider how much capital he will require and from where he get that finance. How much fund he has and how much he can get from other sources. This creates question of ownership of the firm. That firm can adopt sole proprietorship, partnership, private or public company or cooperative society. This decision depends on how much finance he requires now how much he wants to expand in future and how much he wants to create reserve for adversities.
To start with the place of operation is very important. Where should we locate our office and our production unit is an important decision and our comfort of running the business depends on it. Our office should be located in such place which is near to the customer and located in a good area for our office creates the first impression and having a good location helps a lot in negotiations with customers and suppliers. Production unit should be located in such place where the availability of labour is good and also transport facility is good and also land is cheap so as to create bigger store house.
Also the cost of finance is important. If we have invested our own money then we needn’t worry about the interest on the finance, if we have borrowed money from bank then we need to worry and lastly if we have taken money from the private lenders then we need to worry much. We should be able to gain all the licenses and the machinery and the raw material fast enough to stop the building up of the tension due to increasing interest on the borrowed money. Good and trusty manpower is in the base of any successful organization so we should choose our staff with care.
Advertising starts as soon as we start our production. Advertising is the face of any new company and it is the thing which can create our image and build our brand. Proper choice of media depending on our product or service is also very important; especially when we have limited funds and limited time before the actual launch of the product in the market. Quality of the product is also very important for any advertising can bring the customers but it is the quality which decides that they will stay with us or not. Similarly customer relations are also vital and should not be neglected. Customers should be attracted by our product and service and then only they will give us second and subsequent chances of doing business with them.
In short starting any new business is very thrilling and comparatively easy but to maintain the business in a profitable way requires skill and patience.
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