explain any six factors that are important to be considered while starting a business
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Answer:
the line of business, capital requirements, liability of ownership, division of profit, legal formalities, continuity of business, transferability of interest and so on
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Important factors to consider before starting a manufacturing business
Posted on 17 Jun 2016 by The Manufacturer
When you start a new manufacturing business, there are many important factors of which you need to be aware.
Once you have addressed each of these factors and put the correct plans in place, you will increase the likelihood of your new business becoming a successful venture. Below are some of the most important factors you should consider before starting a manufacturing business.
Demand for your product
First of all, there has to be a demand for the product or products you intend to manufacture. This requires extensive market research and an understanding of the customers who will buy your products. Once you identify a need for your product, you can begin to investigate other factors that will have an impact on your business.
Setup costs
Unlike many other types of startups, starting a manufacturing company can be quite expensive as a factory or appropriate workplace will be required. Setting up a manufacturing business also involves the purchase of specialized equipment and machinery. As well as this, you need to hire and pay experts who specialize in the area you are manufacturing in.
Competition from other manufacturers
When you are researching a market, identifying a demand for your products is only half the battle. This demand may already be catered for by other manufacturers so you need to find out as much as possible about your competition, what their market share is and how much of the market will be available to you.
Previous experience, knowledge and qualifications
It’s important to build a team of experienced, qualified professionals when you start any business. The direction the business takes will be the key to your success. You or staff members should have the relevant business qualifications and knowledge to do this.
This can be achieved by completing an online MBA degree or other accredited business qualification such as the AACSB online MBA which can be put to good use by you or your management team. Once you or the members of your management team complete one of these online MBA programs, you will be able to make more informed and confident decisions about the future of your business.
Finance available and finance options
In order meet the financial costs associated with a manufacturing business, you should have access to an adequate amount of capital. If this is not the case, you may need to rethink your plans and wait until you can afford to begin your new venture.
Business location