Aspiring entrepreneurs have many decisions to make. The most important of which is what kind of business do they want to start? There are many factors to consider when making such a decision. But one of the most important is what barriers do you face in starting your business?
Ok so what exactly are we talking about when we say entry barriers? Well an entry barrier in business boils down to how hard or easy it is to set up a business. There are different factors that have to be looked at when considering such barriers. They vary for each particular business and industry. And of course all businesses are influenced by how much money is available to be invested in a business.
The barriers for each business will be different but the factors that need to be looked at will be relatively the same. Let's start with the most basic factor of all, money. How much money you have to work with influences a lot of things. A good example would be that maybe you would like to start a restaurant. Well most restaurants can cost $100,000 and up to get started. Are you able to come up with that kind of cash? If you've only got about $10,000 then maybe a hot dog cart is more within your budget. Startup costs are the single biggest factor to consider.
Another important factor is location. Some businesses are not suitable for certain cities and towns. Often a town's population may not be large enough to support certain businesses. Some times there are not enough potential customers and other times there might be a lack of qualified people for your workforce. Either way not every business is suitable for every town, city, or even sometimes a state.
Next we have to concern ourselves with how much competition exists within both an industry and your desired location. Let's take for example you would like to open a sandwich shop. Now your startup costs for your sandwich shop should be reasonable enough. But do you want to be competing against the likes of big chains such as Subway and Quizno's? You might find it really hard to compete against such heavy weights. Not only do they saturate the industry but they seem to be on nearly every street corner.
Your workforce can be another critical factor to consider. If you can't hire the people you need how can you expect to be able to achieve long term growth. You need to see what kind of skills would be required to operate your business as well as how many people might be required over any sort of long term growth plan. You wouldn't want to find yourself unable to hire the workers you need just as you get rolling along now would you?
These are just some of the questions that you will need answers to if you are to choose a business that you can succeed with. But it is critical that you carefully consider these factors carefully. Picking the wrong business can cost you both time and money. Besides the fact that you want to choose a business that is going to be right for you.
From Small Business To Big Business: Costco Wholesale
Entrepreneurs need inspiration. Because building a business is about having a vision and the will to succeed. The businesses in this series of articles have all started small and have since become icons of the business world. In this article we feature Costco Wholesale.
From Small Business To Big Business: Sears, Roebuck and Co.
Entrepreneurs need inspiration. Because building a business is about having a vision and the will to succeed. The businesses in this series of articles have all started small and have since become icons of the business world. In this article we feature Sears, Roebuck and Co.
From Small Business To Big Business: Eddie Bauer Holdings Inc.
Entrepreneurs need inspiration. Because building a business is about having a vision and the will to succeed. The businesses in this series of articles have all started small and have since become icons of the business world. In this article we feature Eddie Bauer Holdings Inc.
