Following are the pre-requisite of successful business:
1.
Market Condition:
First of all a businessman keeps in view the demand of the goods which he wants to produce and keeps in view his own skill and experience. If the demand is inelastic then chances of success are bright.
2.
Availability of
capital:
Capital is considered an important factor in the business. It is required for the purchases of land, machines, and wages and for raw material. A businessman has to decide before starting the business that how much capital he can arrange.
3.
Scale of Production:
Before starting a businessman also decides that he has to produce the goods on small scale or large scale. He makes the decision keeping in view the availability of capital and demand of the goods.
4.
Form of
organization:
A businessman has also to decide about the form of organization. He may start the business as a sole-proprietor or as a partnership or in the form of Joint Stock Company.
5.
Selection of Location:
A businessman selects the place for business keeping in view the availability of raw material cheap labor and transportation. If these things are easily available then he will start the business there.
6.
Government Policy:
The attitude of the govt. towards the business is also considered to the businessman. If govt. is encouraging the business then it will be profitable for the businessman.
7.
Availability of Raw
material:
A businessman should also keep in view the availability of raw material. If it is imported from other countries then it may create problems for him.
8.
Availability of
Labour:
Before starting the business a businessman should also consider the availability of labour. If skilled and efficient labour is not available then business will not be profitable.
9.
Availability of
Machines:
A businessman should also example that machines required for the business arc available in the side the country or not. If these will be imported than govt. will provide tile foreign exchange or not.
10.
Means of Transportation
& Communication:
If the means of transportation are quick and cheap then cost of production will be low and rate of profit will be high. The expansion of the market also depends upon the quick and cheap means of production.
11.
Administrative Condition:
The success of tile business depends upon the administration. If administration is efficient and capable then rat of profit will be high in the business. So a businessman should pay proper attention to the administrative aspect of the business.
12.
Formulation of
Business Policy:
A businessman also frames the policy about the methods of payments, receipts and techniques of production. These are very essential for the successful business.
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