Why people decide to setup in Business?
The reason why I personally would like to set up in business is to be successful. I want to know that if one day in life I decide I want my own business that I want that company to be very successful. It doesn’t have to be as big as Tesco but as long as it’s successful. Plus I want to be successful. I want to be able to say I have accomplished something worthwhile in my life. I think this is a very good reason why someone should decide to set up in business. Another reason which may cause me to set up in business that I want to be my owe boss.
I want to be my own boss because I have my way of doing certain things and I don’t really like people telling me differently. The thought of me doing something and someone is looking over my shoulder doesn’t go down well in my books. I will not be able to work like that anywhere. Problems you may come encounter and how you may over come these problems Poor choice of location You could locate your business in an area where there are poor transport links. If there are poor transport links customers wouldn’t be able to come to your business.
You also will have to provide parking spaces for customers and be near buses stops for customers coming by public transport. You can solve this problem by locating to an area where there are buses stops near you, parking for customers with cars and near a motorway for suppliers who are bringing deliveries to your business. May not be able to fine right staff, cannot afford training You may be hiring employees to work for you and you cannot afford to train them properly. To overcome this problem you should employ staffs who have experience working in that field so they won’t require much experience.
To find the right staff the employer will have to write up a good person specification. The will outline the kind of person they want for the job. Then the training you give them will be little and shouldn’t cost the company a lot of money especially if they train them on-the-job. Lack of experience You are hiring the staff but because of lack of experience they aren’t doing the job properly even though they have been given training. To solve this problem you should still hire staff with lack of experience because by working for you, you are giving them experience.
In the first month you wouldn’t expect them to be perfect but if they continue working in the long run they will become good at the job. You could maybe hire staff with lack of experience and still hire staff with experience so that way you have the perfect mix. Quality of product is poor This means that the product you are selling is not of a good value. Probably the product is easy to get destroyed. To overcome this you could possible change suppliers. It’s more likely that the place you get the product from they aren’t making it properly.
You could also complaint to the people who makes the product so that they can improve it but if the problem persists then the best thing to do is change suppliers. May be if you are in a partnership you don’t get along with the person This could be that before you got along with the person but as soon as you set up in business with them then everything changed. This could happen because you both have a different idea on how the business should run. To solve this you could possible offer to sell your share and set up as a sole trader instead or maybe invest in another business.
You could open as a franchisee. Maybe your partner could offer to sell his share to do something else. Not enough finance Maybe you don’t have enough money to set up your business or you already have and you’re running into debt. Before you set up you can possible ask the government for a grant and in return they may ask to set up in an area with low unemployment. You can ask the bank for a loan. You can ask family and friends for money. You can also ask your suppliers for credit so that you don’t have to pay them straight away.