what are the most important factors to consider before choosing the form of a start-up? (Share issuance, tax, liability, control, admin. duty, raising money)
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Before choosing the form of a start-up, the following main factors should be considered.
1. Location. One has to choose a good location that will help cut cost. e.g, a location with availability of raw materials, manpower etc.
2. Manpower for succession. Since a business cannot run without manpower, you should choose them effectively for the growth of the business, both skilled and unskilled.
3. Finances. These is the capital required . do you have financial capability to own a business or should it come by borrowing? Be sure whether the capital is of own or borrowed funds.
4. Market. Get to understand the demand of your services and products.Put in mind that some products do well internationally, while others do good locally.
5. Competition. Who are your competitors, Make sure you are stronger than them and this is by creating uniqueness in your services and products.
6. Rules and regulations. Always conduct a lawyer before you engage in business because non compliance can lead to penalties, and doom a new business.
7. Knowledge. Have a great knowledge about the products and services you are about to offer.
8. Cost. Make sure you assess the cost of your project for a successful running of your business. Know the cost of machinery, premises, land etc.
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