8 Factors to consider before starting a business

What do you think is the most important factor in starting a great business today? Money? A great idea? A big team?

  1. A Belief is a great idea

A strong belief in your business idea could be the start of a great business. take the case of Kentucky Fried Chicken for instance at the age of 65 years Colonel Hartland Sanders was broke and owned a small house and a very old car.

He decided that things had to change. his friend loved his chicken recipe so much, that this was the only good idea that he had. He left Kentucky his home area and travelled across the different states in the united states the USA to sell his idea. he would ask restaurants to try his chicken recipe for free in return for a small percentage of chicken sold.

He got 1009 rejections before one restaurant accepted to give it a try. with that one ‘YES’, Colonel Sanders changed the eating habits of the whole world with Kentucky Fried Chicken, popularly known as KFC!!

Sanders founded Sanders café on 20th March 1930 in North Corbin, Kentucky US during the Great Depression. Sanders became a prominent figure in American cultural history. following the expansion, Sanders sold the company to a group of investors led by John Y Brown Junior and Jack C. Massey in 1964. KFC was among the first American companies in the food industry to open branches internationally in the United Kingdom, Mexico, Canada and Jamaica.

KFC’s original product is pressured fried chicken pieces, seasoned with a Sanders recipe of 11 spices and herbs. the constituents of the recipe are a trade secret.!! Isn’t it amazing how much and many large companies in the world have a very humble beginning

2) Knowledge of the business

An entrepreneur should have experience and knowledge in the business he or she is going to start. lack of knowledge may lead to losses as the business owner might be cheated by competitors, suppliers and vendors. a prospective business owner can learn how to operate a business from an experienced person as an apprentice or from learning in an institution of higher learning. a mix of the two results in greater ret

3) Laws, rules and regulations

if a business fails to comply with the laws of the lines of the business then it could lead to hefty fines and penalties. some requirements may include licenses, adherences to safety and operational requirements

4) Customers or target market

The demand for goods and services needs to be assessed. no matter the size of the business if it does not have customers then it cannot thrive. cashflow is very critical for the operation of the business

5)Capital 

The entrepreneur should determine the initial cost required for starting the business and running it. no business can run without money. sources of capital could from personal savings, loans from family and friends, loans from banks, grants from the government

6) Competitors

If there is high demand the entrepreneur will enter the market despite the market competition. information such as who are the competitors, their market strategy and the factors required to compete with them would be necessary for decision making. the product or service the entrepreneur intends to   introduce in the market has to be unique

7) Business Location

In Choosing the location of a  business on  has to consider the most important factors for the success  of the business  .some places have  access  to good infrastructure, access raw materials,ease of access to the market  which could make the business thrive successfully .in this case of retail kind of business they are best suited to be located in places that have high population ..wholesale businesses  are best suited in urban settlements which is centrally located for customer

8) Personal evaluation

Personality plays an important role in the success or failure of a business. the entrepreneur has to evaluate his strengths and weaknesses equally with his or her goals, passion and personal experiences. passion keeps on going despite the challenges. a business is highly likely to succeed if there is a good match between the business idea, skills of the entrepreneur’s interest and motivation

Let us know what are the other factors you considered before setting up your business or what others factors are necessary for the success of the business??

Leave a Reply

Your email address will not be published. Required fields are marked *