STARTING A BUSINESS

Business is any activity that socks profit by providing goods and services to others. Business activity can be performed by an individual or group of persons. Managing a successful and enduring business requires an understanding of the operating environment and at every stage of the business development. The operating environment includes:

The Economy deals with issues such as regulations and taxes; the technology to be adopted; the market which ensures customers satisfaction and stakeholder's interests; the society. which takes care of cultural interests, population and its diversity as well as family changes; and the global environment which seeks to integrate the business with the worldwide trend Understanding these environments ensures business success at the different stages which can be broadly grouped as starting; managing and sustaining the business. The first stage of starting the business will be discussed under the following headings:
(i) Searching for opportunities and Recognition of Gaps
(i) Developing the business concept
(ii)Ethics and Social Responsibility
(iii) Business Plan and Feasibility Reporting
Searching for opportunities and Recognition of Gaps.
Business opportunities present themselves in various ways. They come either as a new entity, buying over an existing business, or as franchise options. Recognizing and utilizing the best suitable option requires an honest self-evaluation based on answers to the following questions:

1. Do I believe in the product or service to be produced or provided?
2. Does the need it fits mean something to me personally?
3. Do I like and understand the potential customers?
4. Do I have experience in this type of business?
5. Do the basic success factors of this business fit my skills?
6. Are the tasks of the business enterprise those, which I can enjoy doing myself?

Developing the Business Concept

The source of business ideas includes Government policies, customers, existing companies current employers, industrial and trade journals, distribution channels as well as results of research endeavors. Ideas and existing gaps from these sources are veritable insights of business concepts but, the methods of generating these ideas are:
(i)Focus Groups in which individuals providing information in a structured format. A moderator leads a group involving participants in an in-depth discussion. This group may generate new ideas or seven existing methods.
(ii) Brainstorming involves organized group discussion experiences capable of stimulating creative ideas: Brainstorming sessions emphasize freewheeling and quality ideas and allow for combinations and improvements on ideas. Criticisms are not allowed in brainstorming sessions.
(iii)Problem inventory Analysis obtains new ideas and solutions by focusing on problems. This method is similar to the focus group method but customers are provided with a list of problems and asked to discuss them.
(iv) Reverse Brainstorming is similar to brainstorming except that criticism is allowed. This method often involves the identification of everything wrong with an idea, followed by a discussion on ways to overcome this problem.