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Business and Economy

  • Starting a Business at Home

    Sometimes you may need to lease office if there is no enough space in your home. In some cases if your space requirement is minimal then you can work from your home. Working at home; when starting a business is useful in a number of ways. Working at home is cheaper than leasing an office. If your business fails you may not lose that much. Choosing a home office for starting a business is not simple. You need to consider a number of   factors when deciding to work at home than renting an office. Here below are the issues you need to consider when deciding to work at home.

    Discipline: If there is something that disturbs your attention you have to avoid it. You need to focus on your work. There should not be anything that tempts you to do other things around. You need to have the necessary discipline to work at home.

    Disturbance: Make sure you do not have interruption while working at home. The disturbance might be from family, friends, TV, radio etc. There should be separate room to carry out your activities without distraction.

    Customers: When working at home your customers must be willing to come to your home. Your home should be convenient for customers visit.

    Parking: You should have enough parking space around your home. Customers will not be willing to visit your location if there is no parking space.

    Space: There should be enough space within the room you are working with. Enough room is required for working conveniently, handling customers, for storage etc.

    Location: Your home must be well located for the business you are going to start. There should be convenient for market.

    Market: Though working at home is cheap there must be market to trade your products and services. Check the availability of market while deciding to work at your home.

    Employees: You may be required to employee additional staff. When you work at your home you need to check the availability of space for additional employees.

    Restrictions: There might be some restriction or laws when working at home. Check this rules and laws. You should have the permission to work at home. If there is no permission you have to see other options.

    When starting a business at your home you need to consider the above points. Make sure these and other related points are taken in to account while starting your business at home.

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  • Location Selection for Starting a Business

    Selecting a proper location is one of the major factors to be considered when starting a business. When a location is selected it should observe the long-term perspective of the business. Location selection involves a big investment. Choosing the right place at initial stage will avoid costs of relocation in the future. Improper location selection also results in loss of sales and in turn low revenue and profit. In order to select the right site we need to consider some factors. Here below are some factors you should consider when selecting your business site.

    Customers: When you select a site consider the availability customers around your location. This is considered when you intend to sale products and services around the site. Check the closeness of the market around your business and select the site accordingly. If the plan is to sale products and services in other location or online you do not need to worry for this point.

    Competitors: Assess the availability of competitors around the site. If there are many competitors in one place it is a sign of the existence of huge market but there is also strong competition. If you get considerable amount of revenue you can proceed with the site which has strong competition. Nil competition means there is a high market or no market at all. So the existence and non-existence of competitors around your site will show you how much market is available.

    Transportation: When you select a business location take in to account the existence of public transportation service. Customers come and purchase products and services if there is convenient transportation service. Study also how much does it cost to reach your location. If transportation cost is too high people may prefer to go to other places. So consider the availability and cost of public transport while selecting a site.

    Supply and Inventory: When you start a business you sale products and services. These products and services require inputs to be processed or to be resold without any processing. When you select a business site consider the existence and cost of supply and inventory. Sometimes there might be supply and inventory in the location but if the cost is too high you need to be cost effective in selecting.

    Utilities: Utilities are the major input to run the day to day business activities. A site must have utilities in place to be considered as a business location. Check the existence of electric power, water, communication and transportation services while selecting a site.

    Workforce: The engine of any business is the workforce. The availability of workforce is unquestionable for the success of a business. You cannot run a business alone especially when it grows. You have to consider the existence and cost of workforce while selecting a business location.

    Physical Plants: You are not required to build your own plants at initial stage of starting a business due to various reasons. The reasons could be not all business requires a new plant, lack of finance or you are not interested to have your own plant. You need to check the cost of leasing a physical plant and consider it for your site selection.

    Future Expansion: A business started today will grow and expand in the future. The expansion requires additional space around the existing location. Consider the availability of space for future expansion when you select a business site.

    Parking Facilities: You sell products and services to your customers when they visit your site.  When customers visit your site they need parking services. Give careful consideration for the accessibility of parking facilities when you select a business location.

    Traffic Flow: You need to consider the general situation of the traffic flow around the location you are going to select. The traffic flow should be as convenient as possible to get the required number of customers. Customers may not frequently visit your site in overcrowded traffic flow areas.

    Points to Remember: you need to consider the cumulative effects of the above factors while selecting a business location.

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  • Questions to ask before Starting a Business

    Starting a business involves careful planning and understanding. There are many questions that need to be asked and responded when you start a business. When you provide answers for these questions you will have the confidence. It will show what resources are required to start a business. If you provide answers for the questions you will not be confused once the business is started.

    Following are the questions you need to ask before starting your business.

    Reasons for Starting a Business: What are your reasons to start a business? You need to briefly describe your motives or reasons to start a business. Describe why you want to be an entrepreneur. List your purposes to start a business.

    Business Idea: Do you have a clear business idea? Is there unfulfilled need in the market? Can the business idea be converted in to business plan and action? Which business are you going to start?

    Identify Customers: Who are your customers is one of the questions that you need to ask yourself.  Identify, select and target your customers to be successful.

    Identify products and services: What are your products and services?  Describe your products and services available for the market. 

    Business Plan: Do you have the ability to prepare the business plan? If not can you find someone who can prepare same for you? Does your business plan reflect business idea, products and services?

    Spend Time and Money:  Are you sure to spend time and money to start your business?

    Product /Service Uniqueness: What differentiate your product or service from others?  List down what makes your product or service unique from others. Express the unique features of products and services.

    Business Location: Where is your business location? Identify your business location based on market availability. 

    Employees or Workforce: What type and number of employees do you demand? Determine the number and type of professionals you require.

    Supplies: What types of supplies are you requiring?  Identify the supplies that you need to start your business.

    Raw Materials: Do you have the necessary raw materials? Where are the sources? Do you know the price of the raw materials? 

    Money: How much money do you need? Express the amount of money you need to start your business.

    Loan: Do you need loan and how much?  Describe if you need loan and the amount. Also describe the sources of loan.

    Time: How long will it take to market your products and services? Describe the time it takes to make your products and services available for the market. How long will it take to make profit? Describe the time it takes to generate profit.

    Profit: How much profit are you going to make? Describe the amount of profit you are going to make within a specific period of time.

    Competition: How is the competition in your business surrounding?   Asses your competition and identify your competitors. Offer better products and services than your competitors.

    Price: How do you set your price? Price your product based on the cost, competition,  etc

    Legal Structure: What type of legal structure will your business have? Get advice to determine the legal structure of your business.

    Taxes: What types of taxes do you pay? List the types and the amount of taxes you are going to pay.

    Insurance: What types of insurance do you require? List out your insurance requirements.

    Promotion: What types of promotional methods do you use? Describe the proper types of promotional methods for you business.

    Ability: Do you have the ability to accomplish your goal? Express capacities, talents, and gifts you have that assist to run the business.

    Interest: What are your interests with respect to the new business? Describe your desires explicitly. Describe your hope, expectation and what you want to attain.

    Vision: Do you have vision? State your vision. Describe where the business should be in the next one, three, five, ten years time. Also express the courses of actions to get there.

    Financial Goal: What is your financial goal?  State whether it is self employment, employment opportunity for others or to have financial freedom.

    Characteristics of Entrepreneurs: Do you have the basic qualities of entrepreneurs? You need to have the determination to take your dream to completion. Be ready to take calculated risk.

    Various Skills: Do you have the courage to have many skills at the start up of the business? When you start your business you may not have the required resource to employ skilled man power. Therefore you are forced to carryout various activities by yourself. You are supposed to be a Manager, Book Keeper, Sales Person, Secretary, Purchaser, Marketing Person, Cleaner etc.

    Working Alone and Long Hours: Are you ready to work alone and for long hours? At the start of your business you may not have the required assistance. You may not have people around to support you. So you need to prepare yourself to work without any help. You also need to prepare yourself to work for long hours and long days without rest.

    Flexibility: Are you flexible enough to adapt to the changing situations? You need to be flexible and ready to capture changes. Train yourself to respond to the changing situations of the market. Observe opportunities when others do not and snatch and apply it.

    Risk: Have you considered the risks associated with your business? Do you have escaping plan if the worst happen?                  




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  • Roles of Entrepreneurs as Employer

    Annually there are great numbers of tasks disappearing due to anticipated or unanticipated life of businesses. Generally business life consists of birth, growth, maturity and death at the end. The brand-new tasks that switch out the vanished ones are coming from:

    • Growth of existing small business

    • New business start-ups

    • And company move.

    Entrepreneurs play vital roles in small business in generating job opportunities. Let us look at some of the roles played by entrepreneurs as employer:

    • Represent major part of all employer businesses

    • Employ almost half of all private-sector employees

    • Generate new jobs annually in various fields

    • Employees from daily laborer to professional one

    • Could be done as home-based business

    The above roles are carried out by entrepreneurs. Entrepreneurs play vital roles in overall job creation and economic development. Entrepreneurs are business leader that promote financial growth and advancement of businesses via looking ideas and placing them in to action. Entrepreneurship is one of the most vital devices in the progress of a person or a nation. Entrepreneurial capacity of entrepreneurs performs an impressive means to ignite the overall business missions.

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