What are the factors that influence the choice of a business idea?

[Yhubee]

A business idea is a concept that can be used for financial gain which is usually centered on a product or service that can be offered for money.
A business idea is the first milestone in the process of building a successful business. However, different factors determine the choice of a business idea. It could be knowledge; The individual will definitely need to have knowledge about a particular business he or she wishes to start up. If he or she did not have the knowledge beforehand, the person will have to find ways to acquire the knowledge before venturing into the business.
Another factor is experience; Some people choose a business based on their experience in that field. Maybe they were able to work under someone in that particular field long enough to gather experience which will help in knowing the pros and cons of the business and in turn succeed in it.
Another important factor is the capital; The individual needs to consider the source of the capital needed for the business and the amount needed too. The capital will determine the type of business the individual will venture into as it is an important factor of production.
Which other factors influence the choice of a business?

 

[Kendy]

I think there are different factors that influence a business idea such as the availability of capital. There are some business ideas which cannot be started out with small funds. For example; oil and gas business would demand much capital. When the capital needed is unavailable, it impeded the business idea reality. The potential business owner's mindset too can I flue xe an idea. There are people who can think creatively of an idea, yet they lack the ability to carry out with this idea such people are mainly food in selling their ideas for money. Lack of long-term goals could also pose as an influence to a business idea. There are business owners with different goals and vision, they could choose to operate a business on a short-term goal due to the plans they have and the business is just a means to an end for me. In such instances, an individual might be planning for a bigger business but since the capital is not available he might choose to start up with a lesser business idea so he could save funds for his dream business or some might be owing to the fact that, they might have plans to relocate permanently from the country.

 

[Sotherefore]

Well it depends on individual and also the type of business, most of the time when proper research is being done about a particular area of business and also the location this is what will mainy determine the location of a business , a situation in which the location is not suitable for the business enterpreneur is interested to do , then the business will obviously be shifted to another location with the required factors that could lead to the success of the business.

Generally some locations are populated while some are not populated and this is always the challenges of most new business because sometimes the populated location may be congested already with high competition .

The capital and the overall net worth of the business can also determine , when a business is not really strong financially it would require a certain location because they won't possibly be able to pay to get a land or a location in the Urban settlement with high population and high level of development .

The economic situation of the country should also be put into consideration but this is not likely to play a huge Factor in the location of a particular business .

 

[Sheebaparveen]

1. LIABILITY OF OWNERS
2. LIFE OFORGANIZATION
3. TRANSFER OF OWNERSHIP
4. FLEXIBILITY
5. TAX LIABILITY
6. LEAGAL FORMALITIES