Establishing a productive business is not a matter of random chance. It takes many inputs or variables. The proper consideration and planning of these aspects can assist you in establishing a productive business. A selection of factors worth considering is listed below.
refers to the money or funds available to start the company. Entrepreneurs should have starting capital and working capital to enable the business to get on its own. The capital used for starting up is the money used for the purchase of equipment, tools as well as machinery and materials for the start of business.
However, work capital is the amount employed in the day-to-day operation of the company. It is used to pay the salary of workers, the cost of transportation and the buying new equipment to produce, operational costs, maintenance for machinery and many other aspects that facilitate the smooth running of business operations. Entrepreneurs should have a solid financial foundation for them to establish and manage the business.
2. Room or space for workshop
Entrepreneurs should find a suitable space or space to set up the workshop. The space must be large enough to accommodate all machinery, tools, and equipment along with the whole workforce. The space should also be able to allow for the freedom of movement from one part of the work area to another.
Furthermore, the space must be well ventilated and lit to make the performance of business activities extremely smooth. The space must be in a location where equipment, tools and other materials are safe to store with no dangers either internally or externally.
3. Skills-based Labour:
This term is used to describe the labour force or workforce of the enterprise is the term used to describe those employed to be employed in the company. The selection of these employees must be based solely on their technical skills or skills that can be applied to the growth of the business.
The business owner should take into consideration this aspect, or else he could be paying employees who don’t in anything contribute in any manner to the production of money for the company. The employees must be qualified and must have excellent qualities that positively impact the operation of the business. The selection of employees to be employed in the company be employed on the basis of family or friendship. If this is done, it will eventually derail the business.
4. Access to raw materials:
The business owner should make sure that he has a reliable source of raw materials needed for his business. He must have a vast inventory of these raw materials, which can keep him going for a long time. This should not cause a business to slow down or slow down when the raw materials are in short supply. He should be able to rely on reliable suppliers for the raw material. If he is able, he could start the process of producing the raw materials himself.
5. Transportation and Communication:
The entrepreneur must consider ways to transport his goods from the business to the consumers and retailers. The routes leading to and from the workshop need to be constructed or accessible to facilitate the ease of transportation of goods. Transport methods for items like vehicles could be available to assist in transport.
Communications lines should be readily available to prospective customers who may want to contact to inquire about business transactions. Telephones need to be installed in the company and in every department. This will allow for a seamless flow of information and improve productivity.
6. The proximity to the market or customers
The location of the business is essential. It should be near potential buyers or clients. It should be close in proximity to the markets. This will increase the marketability of the product.
7. Picking a Business Name
The entrepreneur must choose the most appropriate name for his company. It must be appealing, easy to remember and have a direct connection or a complete description of what the company produces. The name of the business should be unique and distinctive.
8. Requirements for registration:
Anyone who plans to start an organization should try to satisfy all requirements for registration. For instance, he must register the company with the Business Registry Department. He is required to ensure that the company and all of its resources are covered.
Also, he has to pay all taxes due and also include the business’s name in all papers and legal documentation of the nation. This will prevent him from any possible business closures in the future.