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Factors to consider before starting a business

ArticleID 86  
Writer Isaac Thuku
Category Personal Article

Entrepreneurs are driven by risk and more often than not, there are successes and failures. It is important to understand this if you intend to venture into business on your own. By carefully analyzing the success and failures of entrepreneurs, economists have come up with myriad factors that must be critically considered by all upcoming businessmen. It is important to take them into consideration as this will incredibly reduce risk and greatly reduces the risk of a new enterprise collapsing. Here are some of those factors

• Motivation

What drives you to start the business? It could be money, as many entrepreneurs, do start businesses as their sole motivation. However, money is not always readily available during startup and early phases of a new venture. Many entrepreneurs never take a pay until they can comfortably do so and leave the firm with a positive cash flow.

• Strategy

How do you plan to distinguish the product or service? If you plan to compete on basis of selling price alone, you must understand that price is important, but it is a very huge risk to compete on this alone. It is a common fact that large firms with huge productions actually compete by lowering prices.

• Realistic Vision

Do you have a realistic vision of the venture’s potential? Many enterprises fail just before they begin because of inadequate capital. Many would be business owners fail because they underestimate start up costs but overestimate the revenue. Avoid this mistake and you will certainly enjoy the fruits of your labor.

Every entrepreneur must understand the need to work extra hard if they are to see any results. The beginning is not a bed of roses but the returns are surely enjoyable if you put the much needed effort into it.

starting a business, factors to consider, enterprise, entrepreneur
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