Factor to

Consider in
Starting a
Business
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Starting a Business is a positive
decision on the part of the
entrepreneur to exploit
entrepreneurial opportunities which
are important and a worthwhile
endeavor. There are several
reasons, like financial stability, self
fulfillment, helps the family, and
provide employment to others for
an entrepreneur to have his/her
own business.
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 The 3 most frequent forms of
Entrepreneurs:
1. Start up- an enterprise is a
company which is recently
formed, where the founder
establishes complete new
business from the scratch.

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 The 3 most frequent forms of
Entrepreneurs:
2. Buying an existing business- is
acquiring either the shares of
the existing company or all of
the assets of an existing
enterprise.

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 The 3 most frequent forms of
Entrepreneurs:
3. Franchising- is when the
“owner of the company that
already has a successful
product or service, licenses its
trademark, trade name, and
methods of doing the business
to others in exchange for an
initial franchise fee or royalty
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But entrepreneurs will always
make decisions from the
identification stage, to the
organization, and
implementation/execution
stages of their business venture.
The success or failure of their
business depends on their ability
to make right judgement at
every step of the way.
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8 Important Factors to Consider in
Starting the Business
1. Focus and Direction- It
means that there should be a
clear and documented vision
and mission and strategies to
begin with. Start right by
“beginning with the end in
mind.
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8 Important Factors to Consider in
Starting the Business
2. Sources of Capital- There are
different sources of capital that
can be used depending on the
needs to start a new venture.
Personal funds, family and
friends, retirement account,
bank/financial institutions,
government loan, and stock
market.
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8 Important Factors to Consider in
Starting the Business
3. Good Network- Building food
relationships and working with
other people could help start the
business. That can drivers to built
self-confidence and directions,
providers of information that are
not readily accessible to others,
suppliers of raw materials or
mentors and coaches.
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8 Important Factors to Consider in
Starting the Business
4.Legal Requirements- It is very
important to know the laws and
regulations that govern the type
of business that will be opened
to avoid major problems that
can arise if legal requirements
are overlooked.
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8 Important Factors to Consider in
Starting the Business
5. Degree of Risk- Consider the
degree of risk related to specific
business opportunity. It means
the odds are great in many
aspects against starting the
business like limited market, stiff
competitions, high cost of
financing the business and few
supply of needed labor.
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 8 Important Factors to Consider in
Starting the Business
6. Research and Development-
There should be strong research
and development that should be
undertaken. The government
should provide adequate support
to inventors, scientist and engineers
and their new technologies to
commercialize their R&D products.
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 8 Important Factors to Consider in
Starting the Business
7. Personal Competencies- The
personal competencies like
creativity, opportunity seeking, self
confidence, persistence,
commitment and risk-taking, as
well as technical background and
related experiences needed to
run the particular business.
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 8 Important Factors to Consider in
Starting the Business
8. Availability of Resources-
Resources pertain to raw
materials, human resources, and
machineries and equipment.

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 Other Critical Factors for New
Venture
1. Basic Feasibility of the venture
2. Competitive advantages
3. Buyer Decision in the venture
4. Marketing of the goods and
Services
5. Production of the goods and
services
6. Staffing Decision in the venture
7. Control of the venture
8. Financing of the venture
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