Chapter 1 Business Trade and Commerce Solutions
Question - 21 : - What factors are to be considered while starting a business? Explain.
Answer - 21 : -
It is common for a business to check all the aspects before starting the operations. Here are some of the important points to consider:
1. Line of Business: This helps in a determining the line of business as it will help boost confidence.
2. Scale of business: This determines the scale on which the business will be run.
3. Location: A location for setting up a business requires considering the following factors such as cheap labour, availability of raw material, good transportation facilities, sufficient power and infrastructural facilities.
4. Finance: Business is impacted in every step by finance, starting from purchasing raw materials to machinery and then the further investments needed for growth. Therefore, raising funds is necessary for business.
5. Efficiency of Workforce: A trained workforce is a pre-requisite to carry different business activities, therefore identifying skilled workforce is a must before starting a business.
6. Physical requirements of business: These include the tools, machinery and technology that increases the business efficiency. So it should be chosen as per the nature and scale of business.