Factors to consider when starting a small enterprise

Below are some of the factors to consider when starting a business:

1. Entrepreneurial traits
2. Business management and technical skills
3. Long term market demand for product/service
4. The cost of starting, operating and personal finance
5. The level of competition – direct, indirect and future
6. The business location – zoning law and appropriateness
7. The rules and regulations for operating the business.              -Legal registration              –  Tax compliance              –  Relevant licenses                 -Code of conduct               –  Environmental requirements
8. The anticipated profit.                                  -Importance of profit                -Adequate to cover inflation rate and opportunity cost               -Adequate to cover all expense, savings and investment

1. The machinery, tools and equipment required and their cost.

• Lease/buy decision
• Calculation of lease/ buy decision
• Maintenance cost
• Availability of spare parts
• Cost of service
• Availability of technical support
• Technological advances
• The source of supply of goods/raw materials.

• Identify long term supply sources/ reliable source
• Quality of supply
• Alternative sources of supply
• Terms of supply should be favourable