Tuesday, March 9, 2010

SELECTION OF BUSINESS

The first thing to be considered before starting a new business is deciding what type of business to start. This is an important consideration before taking a decision on the establishment of a business. There are many types of business available. The businessman has to select carefully whether to start industry or trade. Once a decision is taken and a business is established it becomes very difficult to introduce basic changes in the nature of the business. While selecting business following factors should be considered:
a. Personal interest of the businessman
b. Possibility of earning more profit
c. Less risk and more profitable business
d. Knowledge and skill of the businessman
e. Estimated size and available resources
f. Prevailing level of competition
g. Chances of expansion in future
h. Rising trend of future demand

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