Setting up an efficient enterprise does not come by chance. It involves a lot of input or factors. Proper consideration and planning of these factors can help one to be able to set up a very industrious enterprise. Some of the factors that merit serious consideration are discussed below.
1. Capital: This refers to the funds or money available for the establishment of the enterprise. The entrepreneur should have a start-up capital as well as working capital to help the enterprise to stand on its feet. The start-up capital is the capital that is used for the purchase of tools, equipment, materials and machinery to start the business operation.
On the other hand, the working capital is the capital used in the day-to-day running of the business. It caters for the salary of workers, transportation costs, and purchase of new materials for productions, operation costs, maintenance of machinery and all the other things that ensures the smooth flow of business activities. The entrepreneur should have a sound financial bedrock to enable him set up and run the enterprise.
2. Room or Space for Workshop: The entrepreneur should also search for an appropriate room or space for the workshop. The space should be large enough to accommodate all the equipment, tools and machinery as well as the entire work force. It should also allow free movement from one area of the workshop to the other.
Moreover, the room should be well ventilated and well lit to make the execution of business activities very smooth. The space should be located at a good spot where tools, materials and machinery can be well stored without any hazards internally or externally.
3. Skilled Labor: The working force or labor of the enterprise refers to the people who are employed to work in the enterprise. The appointment of these people should be strictly based on their technical expertise or skill that can be utilized for the success of the enterprise.
The entrepreneur should seriously consider this factor otherwise he will end up paying people who do not in any way contribute to the generation of funds for the enterprise. Qualified personnel should be employed and they must possess excellent traits that can positively affect the business activity. Never should persons employed to work in the enterprise be based on sympathy or family grounds. Doing this would eventually collapse the business enterprise.
4. Availability of raw materials: The entrepreneur should ensure that he has a sustained supplier of the raw materials for his enterprise. He should have a large stock of these raw materials that can sustain him for a fairly long period of time. This would not cause the business activity to cease or halt when the raw materials are very scarce. He must have reliable suppliers of his raw materials. If possible he can even initiate the production of his own raw materials.
5. Transport and Communication: The entrepreneur should consider the means of conveying his products from the enterprise to consumers and shops. The roads from and to the workshop should be well constructed or accessible to ensure easy transportation of products. Means of conveyance of products such as vehicles can be made available to aid in transportation.
Communication lines must be readily accessible to prospective clients who might want to call to propose business transactions. Telephones must be installed in the enterprise as well as in all its departments. This would ensure the smooth flow of information, enhancing productivity.
6. Nearness to market or customers: The location of the enterprise should be near to prospective buyers or customers. It should be closer to the market. This would promote and maximize the sale of the products.
7. Selecting a Business name: The entrepreneur should select an appropriate business name for the enterprise. It should be attractive, easy to remember and must have a direct bearing or full description of what the enterprise produces. The business name should be unique and original.
8. Registration requirements: The one who desires to set up an enterprise should endeavor to meet all the registration requirements. For example, he has to register the business at the Business Registry Department. He has to see to it that the enterprise together with all its resources is insured.
He must also pay all his taxes and have the name of his business in all the legal documents and books of the country. This would spare him of any future business close down.